Japan FSA to fine Ernst affiliate $16.5 million over Toshiba audit: source
Source: Reuters
Japan's financial regulator will fine an Ernst & Young affiliate after the firm's audit of Toshiba Corp failed to spot the nation's worst accounting scandal in four years, a source familiar with the process told Reuters on Tuesday.
The Financial Services Agency (FSA) will fine Ernst & Young ShinNihon LLC 2 billion yen ($16.5 million) and suspend it form taking on new business contracts for three months, in a decision expected to made on Tuesday, the source said, requesting anonymity due to the sensitivity of the matter.
Toshiba said on Monday it would book a record net loss this year and cut about 5 percent of its workforce as the sprawling conglomerate, reeling from the $1.3 billion scandal, focuses on chips and nuclear energy.
Read more: http://www.reuters.com/article/us-toshiba-accounting-ernst-idUSKBN0U505S20151222
