China fines Deloitte $30.8 million over audit failings

The Chinese government says the Beijing office of Deloitte Touche Tohmatsu was fined $30.8 million for failing to adequately audit a state-owned asset management company. The office also was ordered to suspend operations for three months for mishandling audit and other work at China Huarong Asset Management Co. in 2014-19. Huarong is one of four entities created in the 1990s to buy nonperforming loans from state-owned banks. They expanded into banking, insurance, real estate finance and other fields. Huarong’s former head was sentenced to death on 2021 on charges of embezzlement and taking bribes in exchange for investments, construction contracts and jobs.