Call us now:
The SEC has charged Deloitte Touche Tohmatsu Chinese Affiliate with failing to comply with fundamental U.S. auditing requirements in its component audits of U.S. issuers and its audits of foreign companies listed on U.S. exchanges, fining the firm $20Mn.
Deloitte-China personnel asked clients to select their own samples for testing and to prepare audit documentation purporting to show that Deloitte-China had obtained and assessed the supporting evidence for certain clients accounting entries.
Anyone that has gone through SoX will feel the pain of the audit and understand the need for independent oversight, assurance and attestation prior to 404 submission. One wonders how many firms listed in the U.S can comfortably attest compliance?
One suspects that the ‘Holding Foreign Companies Accountable Act’ in coming into force.
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