Deloitte-China Pays $20 Million SEC Fine for Auditor Conduct (2)

Deloitte Touche Tohmatsu Ltd.’s Chinese affiliate will pay a $20 million penalty over Securities and Exchange Commission allegations that the firm broke US auditor rules when reviewing some of its clients’ financial statements.

The SEC said Thursday that in audits for 2016 to 2018, employees at the Chinese Deloitte affiliate asked clients to select their own samples of financial statements for review and create documents showing the auditor had tested the financial statements when there wasn’t evidence it had. The conduct involved work for at least 12 companies, including nine US companies with Chinese subsidiaries and three Chinese firms ...