PracticeAccounting FirmsDeloitte and SEC to battle it out in court over Chinese audit

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

Deloitte requests judge throw out SEC case to force it to reveal documents of audit of Chinese IT company

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

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, Reuters.com 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.

Related Articles

Deloitte global revenues hit record $38.8bn

Accounting Firms Deloitte global revenues hit record $38.8bn

2w Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

3w Alia Shoaib, Reporter
Deloitte rises in auditor rankings with most FTSE 250 clients

Accounting Firms Deloitte rises in auditor rankings with most FTSE 250 clients

3w Alia Shoaib, Reporter
Deloitte appoints new head of private client services

Accounting Firms Deloitte appoints new head of private client services

2m Emma Smith, Managing Editor
Deloitte UK appoints 57 new partners

Accounting Firms Deloitte UK appoints 57 new partners

3m Alia Shoaib, Reporter
Deloitte reports revenue growth of 11%

Accounting Firms Deloitte reports revenue growth of 11%

4w Alia Shoaib, Reporter
Deloitte acquires Swedish digital agency Acne

Accounting Firms Deloitte acquires Swedish digital agency Acne

1m Alia Shoaib, Reporter
Deloitte reports pay gap of 18.2%

Accounting Firms Deloitte reports pay gap of 18.2%

2m Alia Shoaib, Reporter