September 26, 2022

Wow, Deloitte Nearly Went a Month Without Resigning From a Hong Kong-listed Audit Client

It's been 26 days since Deloitte resigned as the auditor of Daqing Dairy, which is an impressive streak considering the number of days between the previous two resignations was seven. This time around, the Green Dot is walking on SouthGobi Resources Ltd.:

Deloitte & Touch LLP has resigned as an auditor “on its own initiative” and that PricewaterhouseCoopers LLP has replaced it. Deloitte resigned before its contract was up, said SouthGobi, but added that the auditor had not “expressed any reservations” in its most recent reports. Despite the company’s reassurances, Hong Kong investors have been particularly skittish over any hint of auditing antics, given the memory of the market rout last summer among private Chinese companies amid a wave of short-seller reports and auditor resignations.
"On its own initiative" meaning "we were fired" and not expressing reservations in "its most recent reports" just means all the disagreements were so bad that they had to keep it all behind closed doors. I'm sure this will be a peach for PwC.
 

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