Frank C. Razzano Quoted in Bloomberg BNA Daily Tax Report
Tuesday, January 22, 2013
Pepper partner Frank C. Razzano was quoted in January 22, 2013 Bloomberg BNA Daily Tax Report article, "Big Four Audit Firms' Restructuring in China Raises Questions in SEC Case."
A 20-year-old plan in China to transition the Big Four audit firms from joint ventures to local shops has raised questions about their registrations with U.S. accounting authorities and could create a technicality in an ongoing case with U.S. securities regulators, sources told BNA. Razzano said that two outcomes for the new firms are possible: the PCAOB registration of the old firm would automatically transfer to the new firm, in which case all previous liabilities would go with it; or PCAOB could require the new firm to submit an entirely new registration, and liability issues could be raised as part of the application process.