OSC Alleges Breach of Ontario Securities Act Against Ernst & Young LLP

OSC Alleges Breach of Ontario Securities Act Against Ernst & Young LLP 
TORONTO, Dec. 3, 2012 /CNW/ - Staff of the Ontario Securities Commission (OSC) 
today issued allegations against Ernst & Young LLP, former auditors of 
Sino-Forest Corporation (Sino-Forest). 
OSC Staff allege that Ernst & Young breached the Ontario Securities Act by 
failing to conduct their audits in accordance with relevant industry 
standards. The audits related to the 2007, 2008, 2009 and 2010 consolidated 
financial statements of Sino-Forest. 
"Our investigation into Sino-Forest is a complex international investigation, 
and a major focus has been on whether gatekeepers such as auditors and other 
corporate advisors properly performed their role in protecting investors," 
said Tom Atkinson, Director of Enforcement. "Investors rely on auditors to 
conduct their audits in accordance with professional standards, particularly 
when foreign companies are listing on Canadian exchanges. If auditors fail to 
abide by Canadian auditing standards and securities laws, we will hold them 
accountable." 
In the Statement of Allegations, OSC Staff allege that Ernst & Young failed to 
perform sufficient audit work to verify the ownership and existence of 
Sino-Forest's most significant assets. OSC Staff also allege that Ernst & 
Young failed to undertake their audit work on Sino-Forest with a sufficient 
level of professional skepticism. 
On May 22, 2012, the OSC issued allegations of fraud against Sino-Forest and 
former senior executives. Those proceedings are ongoing. 
The mandate of the OSC is to provide protection to investors from unfair, 
improper or fraudulent practices and to foster fair and efficient capital 
markets and confidence in capital markets. As part of its review of emerging 
market issuers, the OSC recently issued an Issuer Guide for Companies 
Operating in Emerging Markets that summarizes its expectations for reporting 
issuers listed on Canadian exchanges with significant business operations in 
emerging markets. 
For Media Inquiries: 
media_inquiries@osc.gov.on.ca 
Carolyn Shaw-Rimmington Manager, Public Affairs 416-593-2361 
Alison Ford Media Relations Specialist 416-593-8307 
Follow us on Twitter:OSC_News 
For Investor Inquiries: OSC Contact Centre 416-593-8314 1-877-785-1555 (Toll 
Free) 
SOURCE: Ontario Securities Commission 
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CO: Ontario Securities Commission
ST: Ontario
NI: FIN  
-0- Dec/03/2012 16:29 GMT