Asia Is Getting Tougher on Auditors After High-Profile Defaults

Regulators in some Asian countries are getting tougher on auditors after landmark defaults, in an increasingly high-stakes game as investors call for earlier warning signs amid expectations for debt failures to mount, Bloomberg News reported. High-profile collapses of commodities trader Noble Group Ltd. and India’s shadow lender Infrastructure Leasing & Financial Services Ltd. have rocked investors over the past year. In China, a spate of defaults has raised concerns over the quality of financial reports. Those incidents have prompted investors and regulators in Asia to look back on where they might have picked up more clues that trouble was brewing, adding to broader scrutiny of auditing firms elsewhere in the world. In Malaysia, the Securities Commission fined Deloitte PLT earlier this year for breaches related to a bond issuance by 1MDB. Read more