Third troubled Deloitte client in months

Cockroaches everywhere in the kitchen. From today's SCMP.

Eric Ng 
Jun 26, 2012
      


Trony Solar is the third mainland private enterprise client of auditor Deloitte Touche Tohmatsu to have run into accounting disclosure troubles in three months.
Trading of children's wear retailer Boshiwa International's shares has been halted since March 15, after Deloitte resigned as its auditor, sending its share price down by over a third. It was listed in September 2010.




Trading of Daqing Dairy has also been suspended, since March 22, after Deloitte resigned, citing an acknowledgement by Daqing management that certain transactions were fraudulent and difficulties in accessing the local branch of one of its banks. It was listed 21 months ago.


In October, Deloitte quit as Real Gold Mining's auditor following several corporate governance breaches, citing the miner's failure to disclose information that was "highly material" to its 2010 financial statements, and saying its 2010 earnings report was not reliable. Real Gold was listed in February 2009, and trading has been halted since May last year.


A Deloitte China spokesman said the fact Boshiwa, Daqing and Trony had run into their own "unique" accounting difficulties was "a coincidence". He said they accounted for only a "minuscule proportion" of the firm's listed audit client portfoli...