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A Challenging year for Deloitte in China

Deloitte, the Big Four accounting firm, has resigned from 18 clients in China, which include China State Construction International, Cheung Kong (Holdings) Limited and Boshiwa. The firm is also the auditor of Sun Hung Kai Properties, which is under investigation by the Independent Commission Against Corruption (ICAC). More recently, the firm’s Shanghai Branch has been charged by the U.S. Securities and Exchange Commission (SEC) over the issue of handing over audit papers of its clients.

 

More Regions Apply for VAT Reform

Ten regions, including Beijing, Tianjin, Chongqing, Jiangsu, Anhui, Fujian, Xiamen, Shenzhen, Hunan and Hainan, have formally applied for the VAT reform pilot scheme, according to a senior official from the State Administration of Taxation.

 

Irregularities of Recognition of High-tech Enterprises

The practice of filing two sets of data, one for the application of high-tech qualification, the other for the disclosure to investors, has been adopted by a number of listed companies. Many intermediaries and agencies have attached to the application process forming a so-called interest chain. They are attracted by the money involved, for example, enterprises based in Beijing spent some 100 million yuan last year on the application process.

 

IPO Review Puzzles Savvy Professionals

Some say the current review system makes the approval of IPO more art than science, no one is sure whether the subject enterprise is able to get the approval or not.

 

Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

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