Lack of endorsement by auditor lifts likelihood of Toshiba being delisted
Tokyo — Japan’s Toshiba Corporation filed twice-delayed business results on Tuesday without an endorsement from its auditor, increasing the likelihood that the conglomerate will be delisted. The filing carried a disclaimer from auditor PricewaterhouseCoopers (PwC) Aarata that it was unable to form an opinion of the results. The move is unprecedented for a major Tokyo-based firm and puts the Tokyo Stock Exchange centre stage as it weighs the pros and cons of forcing Toshiba to delist. Failing to act tough with Toshiba would bring into question authorities’ credibility in maintaining standards for investors but a delisting would complicate the crisis engulfing the firm, increasing financing costs and exposing it to further lawsuits from angry shareholders. Accountants have been questioning the numbers at US nuclear subsidiary Westinghouse Electric Company, where massive cost overruns at four nuclear reactors under construction in the southeastern US have forced its Japanese parent to ...
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