The Financial Supervisory Commission yesterday imposed penalties on 12 certified public accountants for negligence in certifying financial documents of several companies hit by corporate scandals.
The accountants are held responsible for irregularities at such companies as Procomp Informatics Co (
"In order to maintain order in the market, all accountants will definitely be held responsible for their duties in conducting due diligence checks into the finances of listed companies," commission vice chairman Lu Daung-yen (
According to Wu Tang-chieh (吳當傑), head of the commission's securities and futures bureau, Hsu Chun-chen (徐俊成) and Chao Chi-hao (趙志浩) of Lan Jai Certified Public Accountants (聯捷會計), who failed to thoroughly review High Tech Computer's finances, are suspended from certifying listed companies' financial reports for two years, beginning in January.
Two other accountants for High Tech Computer, Liu Yi-chi (
Another two KPMG accountants, Tsai Tien-yuan (
Also, two other KPMG accountants, Yu Chi-lung (余紀隆) and Liu Chin-tong (柳金堂), were given a warning for failing to collect sufficient evidence to support their endorsement of Summit Computer's financial records.
Also found negligent in certifying Summit Computer's finances were Kao Tsung-ming (郭宗銘) and Chen Shen-fa (陳順發) from PricewaterhouseCoopers Taiwan (資誠會計). The two were given a three-month suspension, starting January.
A warning was given to Wang Chin-lai (
The commission yesterday also revoked President Securities Investment Trust Co's (
The company was found to have published advertisements in newspapers that exaggerated the performance of an unspecified company's overseas re-investment, which the company denied, so as to attract investments from investors, according to Wu.
The trust company's president, Wang Tong (王瞳) was also suspended from practicing business for three months due to similar misconduct when presenting his analysis of the company's shares while hosting a TV program.
"No equity analysts can predict share prices of a company without solid research to support their analysis," Wu said.