The UK edition of the Financial Times is reporting that PricewaterhouseCoopers’ Japanese Affiliate firm, Misuzu, will be shutdown.
PwC, the world’s biggest accounting firm, is to shut Japanese affiliate because of its involvement in the Nikko Cordial broking scandal, leaving it with a smaller presence than rivals in the world’s second largest economy.
Misuzu, one of Japan’s big four accounting firms, said yesterday it would wind down its operations because of possible penalties stemming from its work for Nikko Cordial, which faces delisting by the Tokyo Stock Exchange because of accounting fraud.
Misuzu was formerly known as ChuoAoyama and was penalized in 2006 with a two-month suspension in connection with another scandal at Kanebo. In July 2006, PwC opened a new Japanese firm, PwC Aarata, to give its ChuoAoyama clients a new firm. Today’s announcement does not affect PwC Aarata.
Some major PwC clients, such as Sony Corp. and Millea Holdings, have changed from Misuzu/ChuoAoyama to PwC Aarata. However, the Financial Times article reports that only 70 of the estimated 750 Misuzu clients have switched to Aarata.