- China tells Deloitte to learn from recent fine and pledges to toughen oversight of international and local auditors.
- Beijing will strictly enforce financial discipline and step up scrutiny over accounting firms in China including the Big Four.
- The finance ministry fined Deloitte $31mn and suspended its Beijing operations for three months after an investigation revealed serious deficiencies in its audit of China Huarong Asset Management.
- The Big Four firms may be phased out from auditing China’s state-owned enterprises which make up about a quarter of the country’s GDP.
- President Xi Jinping is tightening supervision of China’s financial system and centralising control to avoid economic shocks.
Financial Times — World — Auditing oversight — Accounting & Consulting Services — Chinese Business & Finance — Deloitte Touche Tohmatsu Llc
Deloitte told to ‘learn lesson’ as China vows tougher scrutiny of auditors
China vows to tighten oversight of international and local auditors, Deloitte fined $31mn and suspended for three months after audit deficiencies are revealed in China Huarong Asset Management.