DELOITTE HAS requested a federal judge reject a US Securities and Exchange Commission case to force it to hand over documents from its audit of fraudulent Chinese IT business Longtop Financial Technologies.
Deloitte argues it is barred from handing over the documents by Chinese secrecy laws, Reuters.com reports.
The case, which began in May 2011, has reopened after it was temporarily suspended when discussions between the US regulator and the Chinese Securities Regulatory Commission, which lasted six months, broke down.
The SEC said that the CSRC "remains unwilling or unable to provide the SEC with meaningful assistance in its enforcement investigations" when it requested the case be reopened.
Deloitte argues the SEC's issue is partly of the regulator's own making as it knew of the secrecy laws before it allowed Chinese businesses to list on the US stock exchange.
"The SEC has long been aware that the CSRC forbids China-based audit firms to produce audit work papers directly to the SEC, and yet the SEC chose to allow China-based companies to sell securities in the United States despite those restrictions," the firm said in the papers.
Longtop was delisted from the New York Stock Exchange in 2011 for failing to meet listing standards after an SEC investigation for alleged accounting irregularities.
Sign up for Financial Director email alerts
Please enter your email below to receive your profile link
Search by job title, salary, or location - we only list senior financial roles
Our panel of experts explore the major pension pain points and discuss what actions finance professionals should be taking in order to alleviate them
The first CFO Agenda, hosted by Financial Director at the Royal Society of Arts, was a roaring success
Corporate failures can almost always be traced back to a failure of corporate culture. But how do you assess culture? asks Richard Crump
Send to a friend