WASHINGTON (Sputnik) — International accounting and consulting firm Deloitte and Touche paid more than $1 million after being charged with violating auditor independence, US Securities and Exchange Commission (SEC) said in a press release.
“[SEC] today charged Deloitte and Touche LLP with violating auditor independence rules when its consulting affiliate maintained a business relationship with a trustee serving on the boards… of three funds it audited,” the release said on Wednesday.
“Meanwhile, Deloitte represented in audit reports that it was independent of the three funds while Boynton simultaneously served on their boards and audit committees,” the release noted.
Auditor independence rules, the release explained, require outside auditors to remain independent from their clients to prevent audit bias.
The investing public depends on auditors to “test the reliability of publicly-reported financial statements,” the release added.
The SEC also charged Boynton with compliance violations and failing to uphold his responsibilities for safeguarding the auditing process.