October 13, 2011 / 4:28 PM / 8 years ago

Deloitte resigns as auditors of China gold firm

HONG KONG, Oct 13 (Reuters) - Deloitte Touche Tohmatsu Ltd , the world’s largest accounting and consulting firm, has resigned as auditors of Hong Kong-listed Real Gold Mining , more than four months after the Inner Mongolian miner was reported to have filed conflicting accouting reports.

Real Gold, which halted trading in its shares on May 27. is under investigation by the Securities and Futures Commission for corporate governance breaches. The miner’s announcement to the Hong Kong stock exchange late on Thursday said it was looking for a replacement for Deloitte, which resigned on October 12.

“The company is disappointed that Deloitte has decided to resign at this time but respects its decision,” the firm said.

Deloitte’s resignation is the latest in a string of auditor resignations that have hit overseas Chinese stocks, sending investors running. Earlier this week Ernst & Young LLP resigned as auditors for Singapore-listed Sky China Petroleum Services Ltd .

Chinese firms listed in Hong Kong, the U.S. and Singapore have come under increasing global scrutiny due to a series of accounting scandals.

Real Gold said Deloitte was of the view the firm did not comply with certain listing rules when it issued its 2010 consolidated financial statements by failing to disclose material subsequent events involving related parties.

The miner added that Deloitte did not want continuing reliance to be placed upon its audit report which was included as part of Real Gold’s 2010 annual report.

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