Listen Live
    US Security and Exchange Commission (The SEC)

    Global Accounting Giant Charged With Audit Independence Violations

    © Sputnik / D Ramey Logan
    US
    Get short URL
    0 82
    Subscribe

    International accounting and consulting firm Deloitte and Touche paid more than $1 million after being charged with violating auditor independence.

    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.

    Deloitte did not take corrective action, the release argued, until five years after the “independence-impairing relationship” had been established between Deloitte and trustee Andrew Boynton.

    “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.

    Related:

    US Plans to Fine Telecom Giant AT&T $100Mln for Slowing Customer Data Speed
    US Defense Company to Pay $7Mln Fine for Attempted Bribery in Kuwait
    Merrill Lynch to Pay $11Mln in Fines for Inaccurate Stock Trading Data
    Tags:
    violation, charge, US Securities and Exchange Commission (SEC), Deloitte and Touche, United States
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik