PricewaterhouseCoopers said Tuesday it has formed a new auditing company in Japan following an official penalty slapped on its longtime Japanese ally, ChuoAoyama PricewaterhouseCoopers.

The new company, Arata, will open for business July 1, when ChuoAoyama suspends some of its operations in line with a Financial Services Agency order.

ChuoAoyama was slapped with a two-month suspension for certifying Kanebo Ltd. earnings figures despite their falsification.

Arata will integrate some certified public accountants working for ChuoAoyama into its workforce, the U.S. accounting firm said.

PricewaterhouseCoopers plans to have 80 accountants at the new firm by the end of the year.

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