The SEC charged a foreign audit firm with failing to comply with its audit document request under Section 106 of SOX.
On May 9, 2012, the SEC issued a press release announcing an enforcement action against Shanghai-based Deloitte Touche Tohmatsu CPA Ltd. (Deloitte Shanghai) for refusing to provide its audit documents relating to a Chinese company charged with violating the Sarbanes-Oxley Act (SOX).
The SEC served Deloitte Shanghai with a request for its audit work papers under Section 106 of SOX, which requires foreign public accounting firms to provide audit work papers regarding US issuers to the SEC upon request. Deloitte Shanghai believes that Chinese law prohibits it from producing the documents. This is the first time that the SEC has brought an enforcement action against a foreign audit firm for not complying with a Section 106 request.