Beijing, March 3 (ZXS) -- Chinese Vice Minister of Finance Zhu Zhongming recently met with Deloitte Global Council Chairman Shu Yawei at the Ministry of Finance on an appointment. Zhu Zhongming said that accounting firms practicing in China, including the "Big Four", are treated equally. Shu Yawei said that Deloitte Global supports Deloitte Touche Tohmatsu in fully accepting and resolutely implementing the administrative penalty decision previously made by the Ministry of Finance.
Since 2021, the Ministry of Finance has inspected the quality of the accounting information of China Huarong Asset Management Co., Ltd. and the practice quality of its auditor, Deloitte Touche Tohmatsu. After investigation, Huarong had problems such as internal control and risk control failure and serious distortion of accounting information to varying degrees from 2014 to 2019. During the provision of audit services, Deloitte did not maintain professional skepticism, effectively executed the necessary audit procedures, did not obtain sufficient and appropriate audit evidence, and had serious audit deficiencies.
In March this year, the Ministry of Finance made an administrative penalty decision in accordance with the law. Deloitte Touche Tohmatsu was given a warning, suspended the operation of Deloitte Beijing Office for 3 months, confiscated Deloitte Beijing Office's illegal gains and imposed a total fine of RMB 3,21190,44, and Deloitte Touche Tohmatsu was jointly and severally liable. The CPA and others who signed Deloitte's relevant audit reports were given administrative penalties such as revocation of CPA certificates, suspension of business, and warnings.
During the meeting with Zhu Zhongming, Shu Yawei said that Deloitte Global supports Deloitte Touche Tohmatsu to fully accept and resolutely implement the administrative penalty decision previously made by the Ministry of Finance, and Deloitte Touche Tohmatsu will formulate and implement a rectification plan to promote the improvement of audit quality. Deloitte is willing to continue to contribute to the high-quality development of China's economy.
Zhu Zhongming affirmed Deloitte's attitude of respecting and obeying supervision, and hoped that Deloitte would correctly understand the problem, sincerely accept punishment, deeply learn lessons, strengthen the implementation of rectification and reform, and effectively improve audit quality.
Zhu Zhongming said that China's Ministry of Finance will continue to improve the regulatory system, continue to create a market-oriented, rule-of-law and international business environment, and support international accounting networks, including Deloitte, to conduct business in China in accordance with the law. At the same time, we will effectively strengthen financial supervision, strictly enforce financial discipline, treat accounting firms practicing in China including the "Big Four" equally, strengthen the supervision of the CPA profession in accordance with the law, and continue to promote the healthy development of the industry. It is hoped that Deloitte will seize the development opportunities, give full play to its professional advantages, and play an active role in China's accounting reform, technological innovation, and foreign exchanges. (End)