New Delhi, December 25 (IANS). The National Financial Reporting Authority (NFRA) has imposed a fine of around Rs 2 crore on global audit firm Deloitte for alleged lapses in the auditing of Zee Entertainment Enterprises Limited (GEEL).
This is not the first time that Deloitte has been fined for lapses in auditing. Earlier, in recent years, America, China, Canada along with many other countries have fined Deloitte for ignoring audit rules.
Deloitte’s operations in China have faced regulatory scrutiny from both domestic and international authorities. In September 2022, the US Securities and Exchange Commission fined Deloitte’s Chinese subsidiary $20 million. This penalty was imposed on the firm for asking its client to carry out the audit work itself, which was a direct violation of auditing standards.
Subsequently, in March 2023, Chinese regulators fined Deloitte 211.9 million yuan ($30.8 million) for lapses in the auditing of China Huarong Asset Management Company. This penalty was imposed for not maintaining quality in the audit.
Deloitte & Touche S.A. in September 2023 in the South American country Colombia. But was fined $900,000 by the PCAOB for quality control violations.
In April 2024, the Public Company Accounting Oversight Board (PCAOB) fined Deloitte associates in Indonesia and the Philippines $1 million each. These fines were imposed for fraud and other violations that reflected lack of adherence to auditing standards and professional conduct.
Deloitte faced a fine of $1.5 million in 2024 for violating professional conduct rules by auditors in the Canadian province of Ontario. Canadian officials said the company had failed to follow required guidelines.
These cases have raised questions about Deloitte’s ability to enforce consistent standards across its global network. As part of the Big Four, the firm operates under complex regulatory frameworks in different countries, making compliance a challenge.
–IANS
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