U.S. Securities and Exchange Commission · China

Deloitte Touche Tohmatsu Certified Public Accountants LLP: fine by U.S. Securities and Exchange Commission

Audit or matter: Component audits of U.S. issuers and audits of U.S. listed foreign companies (unnamed)

What the regulator found

The SEC charged Deloitte China over its audit work on Chinese operations of U.S. issuers and on Chinese companies listed in the U.S., finding that personnel asked clients to select their own samples for testing and to prepare documentation suggesting the firm had assessed evidence it had not. The SEC said the firm agreed to settle, and sanctions included a censure, an independent consultant review and additional training for three years.¹

Status: Final¹

Sources

1. U.S. Securities and Exchange Commission, Deloitte's Chinese Affiliate to Pay $20 Million Penalty for Asking Audit Clients to Conduct Their Own Audit Work (press release 2022-176) (29 September 2022)