Reuters: Regulatory News: UPDATE 1-US SEC delays court action seeking Deloitte China audit papers

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UPDATE 1-US SEC delays court action seeking Deloitte China audit papers Jul 18th 2012, 15:10 Tweet Share this Email Print Related Topics Stocks » Regulatory News » Markets » Financials » Industrials » Technology » Wed Jul 18, 2012 11:10am EDT * SEC seeks six month extension * SEC says in talks with Chinese regulators * SEC seeking audit work papers from China-based firms * SEC seeking Deloitte papers in connection with Longtop By Aruna Viswanatha and Sarah N. Lynch WASHINGTON, July 18 (Reuters) - The U.S. Securities and Exchange Commission on Wednesday sought to delay its legal battle with a Chinese unit of accounting firm Deloitte & Touche , citing ongoing negotiations with Chinese regulators. The SEC has been seeking documents from the Deloitte unit's audits of Longtop Financial Technologies Ltd, but Deloitte has resisted citing Chinese sovereignty laws. Longtop, a China-based company that was listed in the US, was charged in November with failing to file accurate financial reports. The SEC said it has reached no agreement yet with the China Securities Regulatory Commission on cross-border cooperation, but talks continue. The SEC has been investigating dozens of China-based companies listed in the U.S. for accounting irregularities, but those inquiries have stalled amid difficulties in obtaining documents from Chinese auditing firms. In July 2012, the SEC said, Chairman Mary Schapiro met with the chairman of the CSRC and discussed developing a mechanism for the SEC to obtain audit work papers and other documents from China-based auditors. "If these negotiations can develop a viable alternative means by which the SEC can obtain the audit workpapers and other documents...it could have a significant impact on the appropriate resolution of this case," the SEC said in its filing. Deloitte's China unit, Deloitte Touche Tohmatsu CPA Ltd did not object to the delay, the SEC said. Its unclear how this filing will impact a separate legal action pending against Deloitte in SEC administrative court. That action also seeks work papers in connection with an SEC investigation into an undisclosed company. Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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