Editing PwC (section)

===ChuoAoyama suspension===
{{Nihongo|ChuoAoyama Audit Corporation|中央青山監査法人|Chūō-Aoyama Kansa Hōjin}} was the Japanese affiliate of assurance service of PwC from April 2000 to 2006.<ref>{{Cite web|url=http://www.hbs.edu/faculty/Publication%20Files/10-088.pdf|title=Audit Quality and Auditor Reputation: Evidence from Japan|website=[[Harvard Business School]]|accessdate=14 November 2023|archive-date=8 October 2024|archive-url=https://web.archive.org/web/20241008135624/http://www.hbs.edu/faculty/Publication%20Files/10-088.pdf|url-status=live}}</ref> In May 2006, the Financial Services Agency of Japan suspended ChuoAoyama from provision of some statutory auditing services for two months<ref>{{cite SSRN|title=In May 2006, the Japanese Financial Services Agency (FSA) suspended ChuoAoyama for two months| date=10 January 2012 |ssrn=1557231| last1=Skinner | first1=Douglas J. | last2=Srinivasan | first2=Suraj }}</ref> following the collapse of cosmetics company Kanebo, of which three of the partners were found assisting with accounting fraud for hiding deficits of about $1.9 billion over the course of five years.<ref name="Kanebo fraud">{{cite news|last=Hongo|first=Jun|date=10 August 2006|title=CPAs in Kanebo fraud avoid prison|work=[[Japan Times]]|url=http://www.japantimes.co.jp/news/2006/08/10/news/cpas-in-kanebo-fraud-avoid-prison/|archive-url=https://web.archive.org/web/20160413163415/http://www.japantimes.co.jp/news/2006/08/10/news/cpas-in-kanebo-fraud-avoid-prison/|archive-date=13 April 2016}}</ref> The accountants got suspended prison terms up to 18 months from the Tokyo District Court after the judge deemed them to have played a "passive role" in the crime.<ref name="Kanebo fraud" /> The suspension was the first-ever imposed on a major accounting firm in the country. Many of the firm's largest clients were forced to find replacement auditors before the suspension began that July.<ref>{{cite magazine|last=Frederick|first=Jim|date=15 May 2006|title=Japan's Regulators Get Tough|magazine=[[Time (magazine)|Time]]|url=http://www.time.com/time/magazine/article/0,9171,1194088,00.html#ixzz1IokjSHHm|url-status=dead|archive-url=https://web.archive.org/web/20090403052115/https://time.com/time/magazine/article/0,9171,1194088,00.html|archive-date=3 April 2009}}</ref>

Shortly after the suspension of ChuoAoyama, PwC acted quickly to stem any possible client attrition as a result of the scandal. It set up the PricewaterhouseCoopers Aarata, and some of ChuoAoyama's accountants and most of ChuoAoyama's clients moved to the new firm.<ref>{{cite web|date=13 June 2006|title=PricewaterhouseCoopers Names Aarata|url=https://outlookseries.com/news/Services/1003.htm|access-date=25 June 2020|website=OutlookSeries.com|archive-date=27 June 2020|archive-url=https://web.archive.org/web/20200627042634/https://outlookseries.com/news/Services/1003.htm|url-status=live}}</ref><ref>{{cite book|last=Knapp|first=Michael C.|url=https://books.google.com/books?id=HPwVqabKeXEC&pg=PA428|title=Contemporary Auditing|date=2012|publisher=[[Cengage Learning]]|isbn=978-1133187899|page=428|access-date=26 June 2020|archive-date=8 October 2024|archive-url=https://web.archive.org/web/20241008151745/https://books.google.com/books?id=HPwVqabKeXEC&pg=PA428|url-status=live}}</ref> ChuoAoyama resumed operations on 1 September 2006, under the Misuzu name. However, by this point the two firms combined had 30% fewer clients than did ChuoAoyama prior to its suspension. Misuzu was dissolved in July 2007.<ref>[http://www.fraud-magazine.com/article.aspx?id=415 New Japanese Internal Controls Framework] {{Webarchive|url=https://web.archive.org/web/20170702093448/http://www.fraud-magazine.com/article.aspx?id=415 |date=2 July 2017 }} ''Fraud Magazine''. November/December 2007</ref><ref>{{cite news|date=2 August 2007|title=Misuzu Audit disbands after 39 years, scandals|work=[[Japan Times]]|url=http://www.japantimes.co.jp/news/2007/08/02/business/misuzu-audit-disbands-after-39-years-scandals/|archive-url=https://web.archive.org/web/20181107020811/https://www.japantimes.co.jp/news/2007/08/02/business/misuzu-audit-disbands-after-39-years-scandals/#.W-JJFW37Tcs|archive-date=7 November 2018}}</ref>