This paperanalyzesauditorchoice and audit pricing ofprivate firms undertheregulation of IPO using the data from 2005 to the first half of 2008 in Chinese listed privatefirms.
Three of the nation's top investment banks, three of the nation's top law firms, a prominent auditor, the SEC, and a top private equity firm (Refco's largest shareholder) all failed to uncover the fraud.