Deloitte’s Chinese Affiliate to Pay $20 Million to Settle Probe Into Outsourced Work

WASHINGTON—The Chinese affiliate of Big Four accounting firm Deloitte will pay $20 million to settle regulatory claims that it outsourced some audit work to companies whose financial statements it was hired to independently review.

The Securities and Exchange Commission announced the settlement on Thursday, saying Deloitte Touche Tohmatsu Certified Public Accountants LLP asked clients to do some work it should have done as part of its review. The Deloitte-China auditors asked clients to pick their own accounting samples for testing and then create records to make it appear there was evidence to support the auditors’ work, the SEC said.

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