SEC launches accounting probe of Deloitte audit client

by Richard Crump

More from this author

31 Jul 2012

  • Comments
deloitte-strand

THE ACCOUNTS of US-listed Chinese private education company New Oriental Education & Technology Group are to be investigated by America's regulatory watchdog.

Deloitte Touche Tohmatsu, which has audited the company since 2006, has yet to sign off on its accounts for the year ended 31 May.

The Beijing-based company said on 17 July that the Securities and Exchange Commission (SEC) had launched an investigation into possible accounting irregularities associated with its operating structure.

The SEC probe centres on whether there was "sufficient basis" for the consolidation of a variable interest entity – a structure that has helped Chinese companies list overseas – into the company's financial statements.

A day after New Oriental said it was being investigated, research company Muddy Waters claimed it had lied to shareholders about its learning centre growth and financial performance. New Oriental has denied the allegations.

Deloitte has said it will cooperate with the SEC and consider the appropriate and necessary response to the Muddy Waters report, according to Reuters.

Visitor comments

blog comments powered by Disqus
display:none

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

Submit
  • Send

Financial Planning and Performance AnalystCabinet Office-Greater London-Competitive

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

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

Briefings

budget-management

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.

cchcover

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.