Investor Group Urges U.S. Regulator to Act on Luckin Audit Firm

April 10, 2020, 9:25 PM

A group of pension funds and foundation endowments are pressing the U.S. audit regulator to consider deregistering the auditor of Luckin Coffee Inc. after the Chinese company said that it was investigating reports of accounting fraud earlier this month.

The Council of Institutional Investors in a letter Thursday called on the Public Company Accounting Oversight Board to investigate the role of the coffee chain’s auditor, Ernst & Young Hua Ming LLP, and whether the Chinese affiliate should remain a PCAOB-registered firm.

  • “Confidence in the auditor of Luckin Coffee Inc. will be even more critical in light of apparent control failures ...

To read the full article log in. To learn more about a subscription click here.