PracticeAuditDeloitte China asks court to dismiss US SEC audit case

Deloitte China asks court to dismiss US SEC audit case

Deloitte's Chinese arm calls for courts to dismiss attempts made by US regulators to obtain audit work papers

DELOITTE’S CHINESE ARM has requested that courts dismiss attempts made by US regulators to obtain audit work papers, citing a recent deal between China and the US watchdog allowing the documents to be released.

Deloitte Touche Tohmatsu’s legal team argue that the Securities Exchange Commission (SEC) has “alternative means” of acquiring the documents. The SEC claims it requires the papers as part of a fraud investigation into the Big Four firm’s client Longtop Financial Technologies, Reuters reports.

The Longtop case has been running since 2011, when the company was charged by the SEC for failing to file timely financial reports, with the body suspecting it of committing fraud.

In September of that year, the SEC told the federal district court in DC to enforce a subpoena against Deloitte in connection with its audit work carried out for Longtop. The action was postponed as the SEC negotiated with the Chinese authorities.

The dismissal request made by Deloitte comes days after the US’s Public Company Accounting Oversight Board (PCAOB) and Chinese regulators reached a deal, having been at stalemate for two years, effectively blocking American officials from investigating accounting irregularities at several Chinese businesses listed on the US stock exchange.

The deal is limited, however, and will only allow document sharing to take place in cases against auditors who transgress rules.

Related Articles

Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

2w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter
Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

Audit Deloitte to pay $149.5m over Taylor, Bean & Whitaker audit failure

3m Alia Shoaib, Reporter
Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

Audit Deloitte’s audits of Hezbollah-linked bank to be examined by Dubai court

3m Alia Shoaib, Reporter
Shareholders bring lawsuit against Steinhoff and Deloitte

Audit Shareholders bring lawsuit against Steinhoff and Deloitte

4m Alia Shoaib, Reporter
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
PwC to take over from Deloitte as Diploma auditor

Accounting Firms PwC to take over from Deloitte as Diploma auditor

9m Alia Shoaib, Reporter