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Auditor Oversight
The Securities and Exchange Commission May 9 sued Deloitte Touche Tohmatsu's Shanghai affiliate for allegedly "willfully" failing to provide documents to the agency regarding a client under SEC investigation (In re Deloitte Touche Tohmatsu CPA Ltd., SEC, Admin. Proc. File No. 3-14872, 5/9/12).
In a release, the SEC said the administrative suit marks the first agency enforcement action against a foreign audit firm for allegedly violating Section 106 of the Sarbanes-Oxley Act. The SOX provision requires foreign firms that issue audit reports for clients with SECregistered securities to submit to Public Company Accounting Oversight Board inspections in the same way as U.S. -registered firms.
'Extensive Efforts.' According to the SEC, since 2010, the agency has made "extensive efforts" to...