---
title: Failed Audits of China-Based Company Lead to SEC Charges
description: Patrizio & Zhao LLC failed to comply with U.S. auditing standards in conducting audits and interim reviews for Keyuan Petrochemicals.
image: https://www.vibato.com/hs-fs/file-66184455-jpg/images/sec-logo.jpg
---
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## Failed Audits of China-Based Company Lead to SEC Charges
Posted by Juliette Gibson on October 2, 2013
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Since our Vibato® Internal Control Suite® tools are available in Mandarin and our products have been being sold in China for several years, we are always interested in news surrounding SEC audits there. It is unfortunate to see a US-based auditing firm failing their clients and helping to continue the negative press China companies often receive while trying to comply with SEC standards.
In this case, the SEC's investigation found that the New Jersey based accounting firm Patrizio & Zhao LLC and Xinggeng (John) Zhao, who is head of the firm’s China practice, failed to comply with U.S. auditing standards and to adhere to professional standards in conducting audits and interim reviews for Keyuan Petrochemicals, which the SEC charged with disclosure and accounting violations earlier this year.
To read the complete article, click [here](http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539849819#.UkyXBYakoSU). 
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