China’s financial regulators have asked to review work by the “Big Four” audit firms related to US-listed Chinese companies, Reuters reported. Beijing wants details on information the firms may have supplied to US regulators; the move is seen as a response to pressure from the US Securities & Exchange Commission (SEC) on China-based Longtop Financial Technologies, which has been mired in scandal since its auditor Deloitte Touche resigned over alleged irregularities. Longtop has since delisted from the New York Stock Exchange. The SEC requested documents from Deloitte’s China practice last month in the wake of a scandal which led to the de-listing of Longtop, but Deloitte China has yet to comply. Sources said that the Ministry of Finance and the China Securities Regulatory Commission (CSRC) met with six firms including KPMG, PricewaterhouseCoopers, Ernst & Young and Deloitte, requesting a review of all auditing materials on US-listed Chinese firms in 2010.
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