Deloitte, one of the four largest accounting firms in the world, was recently fined heavily by the Chinese government.

(picture taken from Weibo)

[Central News Agency] After Deloitte, one of the top 4 accounting firms in the world, was severely fined by the Chinese government, Deloitte Global Council Chairman Shu Yawen met with Chinese Vice Minister of Finance Zhu Zhongming in Beijing on the 24th, saying that Deloitte supports and fully accepts The Chinese side will punish and implement the rectification plan.

The official website of the Chinese government announced tonight that Zhu Zhongming met with Sharon Thorne "by appointment", and Shu Yawen made the above statement during the meeting.

Please read on...

According to the announcement, Shu Yawen said that Deloitte Global "supports" and Deloitte Huayong "fully accepts and resolutely implements" the previous administrative punishment decision made by the Ministry of Finance of China.

Deloitte Touche Tohmatsu will formulate and implement a rectification plan to promote the improvement of audit quality.

And Deloitte is willing to "continue to help the high-quality development of China's economy."

The announcement mentioned that Zhu Zhongming affirmed Deloitte's attitude of "respecting and obeying supervision", and hoped that Deloitte would "understand the problem correctly, accept the punishment sincerely, learn lessons deeply, and strengthen the implementation of rectification" to really improve the audit quality.

Zhu Zhongming said that the Ministry of Finance of China will strengthen the construction of the legal system, continuously improve the regulatory system, continue to create a market-oriented, legalized and internationalized business environment, and support international accounting networks including Deloitte to conduct business in China in accordance with the law.

He also said that China's Ministry of Finance will strengthen financial and accounting supervision, strictly enforce financial discipline, treat all accounting firms practicing in China, including the world's top four, and strengthen supervision of the CPA industry in accordance with the law, so as to continue to promote the healthy development of the industry.

Zhu Zhongming mentioned that he hopes that Deloitte will seize development opportunities, give full play to its professional advantages, and play an active role in China's accounting reform, technological innovation, and foreign exchanges.

China's Ministry of Finance announced on the 17th that on the 15th it decided to impose administrative penalties on China Huarong Asset Management Corporation and its auditing agency, Deloitte Touche Tohmatsu CPA.

The survey results showed that Huarong had internal control and risk control failures and serious accounting information distortions to varying degrees from 2014 to 2019; Deloitte had "serious audit deficiencies."

For this, China imposed a fine of up to RMB 212 million (approximately NT$954 million) on Deloitte Huayong, and its Beijing branch was suspended for 3 months; however, Huarong and its seven affiliates, the protagonists of the incident, were only fined 100 million yuan. 10,000 yuan, which aroused doubts from the outside world.

Therefore, Deloitte is generally considered to be a victim of the tension between the United States and China, and the power of the Chinese side.

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