The S.E.C. knows, based on its recent experience with investigating and sanctioning PwC in the Satyam scandal in India, that foreign member audit firms are generally subject to significant quality assurance oversight by the U.S. audit firm and provided non-voluntary expert support for their audits of U.S. listed firms. Deloitte, as a global firm, has quality and risk management policies and procedures that almost certainly require a second partner and subject matter expert review by U.S. GAAP and S.E.C. reporting experts before issuance of quarterly and annual reports by U.S. listed clients of their member firms.
The member audit firms and their clients don’t always appreciate the time and money spent on this extra step, but it’s a cost of doing business – and raising money in the United States.
These quality assurance reviews are performed by U.S. professionals on a remote basis, using files they can see from their computers at home. If the bits and bytes of the Longtop workpapers have already traveled over the Chinese Wall, that particular objection to the S.E.C.’s request may be moot.
from the forbes article-
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