Deloitte employees wrote more than 50 pages of ppt to report the company’s audit violations. What is the company’s response?

It is reported on the Internet that an employee of the Beijing branch of Deloitte Touche Tohmatsu Certified Public Accountants (Special General Partnership) sent a 55-page PPT document to the company email, reporting various irregularities during his four years of work. people and things. On the evening of the 4th, Deloitte employees sent a group PPT to report violations and ranked second on Weibo's hot search. Afterwards, the incident continued to unfold. A spokesman for the China Securities Regulatory Commission stated at a regular press conference of the China Securities Regulatory Commission that it had noticed the incident. The relevant China Securities Regulatory Bureau received the report and is currently verifying it. Deloitte is also required to conduct a self-examination and will follow up. Flying planes? is the main violation issue. An employee from Deloitte Beijing's team sent a more than 50-page PPT document to the company email, reporting various non-compliant people and things during his four years of work.

Specifically, this report *** included 10 incidents, of which the employee reported 7 incidents himself and 3 incidents on behalf of other resigned colleagues. All incidents lasted more than two years.

The audit companies involved mainly include listed companies such as Sinotrans Shandong Co., Ltd., Beijing Lejin System Integration Co., Ltd., China Boqi Environmental Protection (Holdings) Co., Ltd., and Red, Yellow and Blue Education.

According to the report, Deloitte’s audit of the above-mentioned company involved issues such as "releasing aircraft" and tampering with actual amounts.

The whistleblower focused on reporting the irregular audit behavior of "releasing airplanes". The so-called "flying" refers to auditors claiming to have performed certain audit procedures without actually completing the required work.

The whistleblower stated that at the 2016 annual audit pre-audit site of Sinotrans Shandong Co., Ltd., he was repeatedly asked by the person in charge, colleagues and the audit team to "release the plane".

In this report, Red, Yellow and Blue Education, which has aroused public opinion due to child abuse, was highlighted. At the end of November 2017, a vicious incident occurred in a kindergarten in Chaoyang District, Beijing, owned by Red, Yellow and Blue, in which a child was stabbed with an injection and given unknown white pills by a kindergarten teacher.

The incident reported by the whistleblower happened to be in 2017. The whistleblower stated that from June 19, 2017 to June 23, 2017, at the 2016 annual audit site of Red, Yellow and Blue Education, the whistleblower found that the dates or amounts in many manuscripts were inconsistent with the actual vouchers, and was then instigated by members of the audit project to There are many places in the manuscript. Is the voucher information consistent? Are all the columns filled in? All are consistent, and the voucher number is filled in randomly.

In addition, the whistleblower’s former colleagues also discovered that the management expenses of the Beijing training school under RB were basically reimbursed for the overseas consumption of the children of senior executives and chairman of the board. Deloitte managers and partners discovered this problem in the previous year's audit, but in the subsequent listing audit, management expenses were listed as accounting items that did not require detailed testing, but were simply reviewed and accepted. Red, yellow and blue educational beauty card.

The whistleblower stated that since 2018, he has communicated with Deloitte management and Deloitte Reputation and Comprehensive Risk Management (RRG) more than 30 times for 2 years, requesting Deloitte to improve audit quality. Properly handle the reported incident and make a fair re-evaluation of the impact of the relevant incident on my performance rating. However, as of now, all the personnel involved in the reported incidents who are still working are still working on audit projects for A-shares, H-shares and US stocks, and have received corresponding promotions.

The whistleblower declares that if Deloitte (excluding specific parties) fails to respond reciprocally and fairly within 10 days after receiving the report document, the whistleblower will take follow-up actions as appropriate until the issue arises. properly resolved. ?Company response?

Due to Deloitte's industry status, this incident fermented quickly and the public opinion discussion was also very heated. It once ranked second on Weibo's hot search list.

Public opinion is basically divided into two groups. One group believes that it is hoped that there will be more and more such young people, so that the rules can slowly be changed; the other group believes that the whistleblower is a "dumbheaded youth", and believes that the auditee pays the audit fee. For the sake of performance, it is difficult for a firm to do things completely according to the rules. "Flying the plane" is just the default unspoken rule within the industry.

Deloitte’s official statement responded: We have noticed that there are currently several doubts circulating on social media platforms about Deloitte Beijing’s individual audit projects in 2016 and 2017. In fact, our firm has previously received relevant matters reported by an employee through internal channels and has conducted a comprehensive investigation into this matter. We have not found any evidence that affects the adequacy of our audit work. Therefore, the relevant audit work supports our audit opinion. We will investigate any concerns we receive. Deloitte issued a company statement, saying that it has conducted a comprehensive investigation and found no evidence that affects the adequacy of our audit work. It also stated that we reserve the right to take legal action against the dissemination of Deloitte-related false information.

After the statement was released, netizens questioned the statement, saying: Is it okay to check on my own? ?Subsequently, China Securities Regulatory Commission spokesperson Gao Li said in response to reporters' questions that the China Securities Regulatory Commission has noticed this incident. The relevant China Securities Regulatory Bureau has received the report and is currently verifying it. At the same time, Deloitte is required to conduct a self-examination and will follow up.