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Deloitte and the whistleblower

Global Times today reported that the China Securities Regulatory Commission has commenced an investigation into Deloitte China based on a whistleblower report. The whistleblower report (alleged copy here) was apparently written by a low-level Deloitte staffer unhappy with the firm's response to internal complaints.

We used to call exuberant young auditors “audit rambos”. Often, they did not see the whole picture and would get overly worked up about immaterial matters or issues that look quite differently when the big picture is considered.

I express no opinion on these allegations but observe that when regulators get involved the stakes go up considerably and regulators are often staffed with “audit rambos” that wash out of accounting firms.

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