SEC Fines Deloitte China $20 Million for Audit Shortfalls

The U.S. Securities and Exchange Commission (SEC) fined a major Chinese affiliate of Deloitte, one of the “Big Four” accounting firms, $20 million for breaching various rules, including asking some clients do their own audit work.

The penalty highlights the need for the U.S. auditor watchdog, the Public Company Accounting Oversight Board (PCAOB), to be able to inspect Chinese audit firms, the SEC said Thursday in a statement. But it said the fine is unrelated to Washington’s ongoing dispute with Beijing about permission to inspect Chinese audit firms.