PracticeAuditSEC’s Deloitte subpoena attacked by US court

SEC's Deloitte subpoena attacked by US court

The SEC must show precedent for bypassing the Hague Convention in its subpoena of Deloitte China, a judge has ruled

SEC’s Deloitte subpoena attacked by US court

US REGULATOR the SEC has been pulled up short over its subpoena of Deloitte’s China arm, after a judge ruled the move might contravene normal procedure.

Federal judge Deborah Robinson questioned whether the courts had the power to force Deloitte China’s hand, asking the SEC why it had not followed Hague Convention procedures, Reuters reports.

The SEC has demanded documents and evidence relating to the audit of Longtop Financial Technologies, a China-based US-listed company that is one of more than 30 recently accoused of questionable accounting activity.

Last week, China Biotics became the latest to fall foul of the regulator, which suspended trading in its shares due to “a lack of current and accurate information concerning the company’s securities because it has been delinquent in its required periodic reports since February 2011”.

Judge Robinson has given the SEC until Friday to show precedent for why it should be allowed to dodge Hague protocol, after a lawyer for the regulator complained about the delay this would cause: “We’re talking about months and months,” he said. “Time is of the essence.”

Related Articles

US and China commit to cross-border audit inspections

Audit US and China commit to cross-border audit inspections

3y Richard Crump, Writer
SEC suspends ex-Deloitte risk officer over audit work

Accounting Firms SEC suspends ex-Deloitte risk officer over audit work

3y Richard Crump, Writer
Big Four China units appeal US audit ban

Audit Big Four China units appeal US audit ban

4y Richard Crump, Writer
SEC bans accountancy firm over failed Chinese company audits

Audit SEC bans accountancy firm over failed Chinese company audits

4y Richard Crump, Writer
Deloitte China asks court to dismiss US SEC audit case

Audit Deloitte China asks court to dismiss US SEC audit case

4y Calum Fuller, Reporter
Audit in their hands: what China can tell us about rotation

Audit Audit in their hands: what China can tell us about rotation

4y Gavin Hinks, Writer
China hits back over Big Four US audit ban

Audit China hits back over Big Four US audit ban

4y Richard Crump, Writer
SEC judge suspends Big Four China units

Audit SEC judge suspends Big Four China units

4y Richard Crump, Writer