Deloitte Faces Penalties Globally for Breaching Audit Standards, Not Just in India
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New Delhi, Dec 25 (NationPress) The global audit firm Deloitte has been penalized with around Rs 2 crore by the National Financial Reporting Authority (NFRA) for purported deficiencies in the auditing of Zee Entertainment Enterprises Ltd (ZEEL).
This incident marks another instance where Deloitte has faced financial penalties for audit-related issues.
Over the past five years, several countries, including the United States, China, and Canada, have also imposed fines on Deloitte for neglecting established audit standards.
In China, Deloitte has been subjected to regulatory investigations from both local and international bodies. In September 2022, the U.S. Securities and Exchange Commission levied a $20 million fine against Deloitte's Chinese branch for instructing clients to conduct their own audit work, which constituted a clear breach of auditing regulations. Subsequently, in March 2023, Chinese authorities fined Deloitte 211.9 million yuan (approximately $30.8 million) for deficiencies in auditing China Huarong Asset Management Company.
In September 2023, in Colombia, Deloitte & Touche S.A.S. faced a fine of $900,000 from the Public Company Accounting Oversight Board (PCAOB) for breaches in quality control. In April 2024, the PCAOB also fined Deloitte's affiliates in Indonesia and the Philippines $1 million each for examination misconduct and other infractions, indicating a persistent disregard for auditing standards and professional ethics.
Furthermore, in 2024, Deloitte had to pay a $1.5 million penalty for violating professional conduct norms in Ontario, Canada. Canadian auditors indicated that the firm did not comply with essential guidelines.
These incidents have sparked concerns regarding Deloitte's capability to enforce uniform standards across its international operations. Being part of the Big Four, the firm navigates through intricate regulatory landscapes in numerous countries, making compliance a constant challenge.
