Big Four firm Deloitte is under pressure after one of its employees reportedly made a 55-page PowerPoint presentation that exposed the firm’s alleged accounting violations in China.
The PowerPoint, which has been circulating on Weibo, a Chinese website similar to Twitter, has alleged that when Deloitte was auditing the financial data of its client RYB Education in 2017, a member of the auditing project told the whistleblower “not to be so careful and fill the numbers randomly,” the Global Times reported.
The same member of staff also allegedly confessed to have “fabricated” many such figures in past audits.
The whistleblower also alleged that a Beijing training school under RYB Education had spent most of its management fees raising the children of the school’s senior executives in overseas countries, such as golf study fees.
A partner at Deloitte noticed this, the whistleblower said, but chose to define the management fees as an unimportant and low-risk accounting title, which required just a simple check.
In statement, Deloitte China threatened legal action on the “spread of false information about Deloitte”.
“We have noticed that there are currently several doubts about Deloitte Beijing’s individual audit projects in 2016 and 2017 circulating on social media platforms. In fact, the firm previously received a related matter reported by an employee through internal channels, and has conducted a comprehensive investigation of this, and found no