SEC subpoenas Deloitte Shanghai after client fraud

by Rose Orlik

More from this author

09 Sep 2011

  • Comments
SEC logo

DELOITTE SHANGHAI may be dragged to court by US regulator the SEC after it failed to turn over documents relating to an audit that sparked the firm's resignation as auditor.

Longtop Financial Technologies Limited was de-listed on the US stock market after Deloitte uncovered evidence of fraud and warned the previous year's audit report could not be trusted.

The SEC issued a subpoena for the relevant documents in May this year and Deloitte had until 8 July to comply.

Director of the watchdog's division of enforcement, Robert Khuzami, said: "Compliance with an SEC subpoena is not an option, it is a legal obligation ... recipients who refuse to comply should expect serious legal consequences."

This is the latest in a series of audits that have laid bare questionable accounting practices at China-based companies on the US stock exchange, leading to a spate of auditor resignations and de-listings.

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send


Financial Planner

The Ministry of Defence Surgeon General’s (SG) Finance Department, Lichfield, Staffordshire, Permanent, Full Time, £ £30,008




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.