Deloitte and SEC to battle it out in court over Chinese audit

by Rachael Singh

More from this author

08 Jan 2013

  • Comments

DELOITTE HAS requested a federal judge reject a US Securities and Exchange Commission case to force it to hand over documents from its audit of fraudulent Chinese IT business Longtop Financial Technologies.

Deloitte argues it is barred from handing over the documents by Chinese secrecy laws, reports.

The case, which began in May 2011, has reopened after it was temporarily suspended when discussions between the US regulator and the Chinese Securities Regulatory Commission, which lasted six months, broke down.

The SEC said that the CSRC "remains unwilling or unable to provide the SEC with meaningful assistance in its enforcement investigations" when it requested the case be reopened.

Deloitte argues the SEC's issue is partly of the regulator's own making as it knew of the secrecy laws before it allowed Chinese businesses to list on the US stock exchange.

"The SEC has long been aware that the CSRC forbids China-based audit firms to produce audit work papers directly to the SEC, and yet the SEC chose to allow China-based companies to sell securities in the United States despite those restrictions," the firm said in the papers.

Longtop was delisted from the New York Stock Exchange in 2011 for failing to meet listing standards after an SEC investigation for alleged accounting irregularities.

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

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




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.