U N N E R V I N G ● N E W S
“If Deloitte was caught with one such brazenly egregious case, just what else is there that goes unreported, and undiscovered when it comes to corporate “books”, not only in Brazil but also in the US.”
### zerohedge.com Dec 5, 2016 9:43 PM
Auditor Deloitte Fined A Record $8 Million For Massive Fraud
By Tyler Durden
Remember when auditors were, by their very definition, supposed to be the embodiment of credibility, trustworthiness and moral fibre? The Brazilian arm of Big Four auditing giant, Deloitte, forgot these simple prerequisites and as a result the US auditing watchdog fined the firm a record $8 million for what amounts to massive fraud: falsifying audit reports, altering documents and providing false testimony during an investigation that unearthed what it described as its “most serious” finding of misconduct.
The US Public Company Accounting Oversight Board, or PCAOB, also penalised or barred 12 former partners, including a national practice director, and auditors of the Brazil-based Deloitte Touche Tohmatsu Auditores Independentes.
The Deloitte Brazil case is the first time the PCAOB has “charged a member of the Big Four auditing firms with fraud and for failing to co-operate with an investigation” according to the FT [Financial Times]. Worse, unlike banks which resolve similar cases without admitting or denying guilt, in settling, Deloitte Brazil admitted it had violated quality control standards and failed to co-operate with the auditing board’s inspection and subsequent investigation.
“This is the most serious misconduct we’ve uncovered. It’s cover-up after cover-up after cover-up,” Claudius Modesti, director of enforcement at the PCAOB, said. “As an investor you’re expecting that the audit was done properly and sufficiently and that wasn’t the case here.”
Not only was that not the case, but the details read like straight out of a fictional account of third-world crime.
Deloitte Touche Tohmatsu Ltd, commonly referred to as Deloitte, is a UK-incorporated multinational professional services firm with operational headquarters in New York City in the United States.
Deloitte is one of the “Big Four” accounting firms and the largest professional services network in the world by revenue and number of professionals. Deloitte provides audit, tax, consulting, enterprise risk and financial advisory services with more than 244,400 professionals globally. In FY 2016, the company earned a record $36.8 billion USD in revenues. As of 2016, Deloitte is the 6th-largest privately owned organisation in the United States.
The Big Four:
● PricewaterhouseCoopers (PwC), largest accounting firm in terms of revenue.
● Deloitte Touche Tohmatsu (Deloitte)
● Ernst & Young (E&Y)
● Klynveld Peat Marwick Goerdeler (KPMG)
OTAGO RUGBY & RACING ASIDE
Remember the old chestnut…. The connection between TTCF (The Trusts Community Foundation Ltd; formerly, The Trusts Charitable Foundation Inc) —and Deloitte.
“TTCF engaged Deloitte when they desperately needed an ‘independent’ audit so as to put the Department of Internal Affairs (DIA) and Audit NZ off the scent. Unfortunately, even though Deloitte uncovered approximately $40k per month in mis-spent funds, TTCF ensured that was left out of the report because after all they were paying the Deloitte bill.”
Related Post and Comments:
2.6.15 Queen’s Birthday honours to rogues #TTCF #ORFU #PokieRorts
11.3.15 DIA —poor job as gambling regulator
2.2.15 Operation Chestnut: DIA, SFO fluffing round the edges #TTCF #ORFU
11.1.15 Southern complainants: IPCA won’t ensure upfront investigation…
14.12.14 DIA regulates what? Not white collar crime, not with govt looking on!
5.8.14 Gambling Commission shuts down racing’s Bluegrass pokie trust
3.2.14 DIA signed up Intralot amid concerns about bribery and corruption
31.12.13 Martin Legge: Operation Chestnut [DIA’s PR exercise]
30.12.13 DIA insights: Pokie rorts, money-go-rounds, names
11.10.13 New Zealand: Pokie trusts same everywhere #pokierorts
10.10.13 Whistleblowers’ message heard ??! #OtagoRacingClub #pokierorts
1.8.13 Politicians keeping DIA/SFO quiet on ORFU and TTCF #pokierorts
31.3.13 DIA and Office of the Auditor General stuff up bigtime #pokierorts
21.2.13 DIA, SFO investigation #pokierorts
11.11.12 Department of Internal Affairs #pokierorts #coverup #TTCF
25.7.12 Martin Legge backgrounds TTCF (pokie trust) and Portage and Waitakere Licensing Trusts #DIA
█ For more, enter the terms *pokies*, *pokie rorts*, *ttcf*, *orfu* or *dia* in the search box at right.
Posted by Elizabeth Kerr
This post is offered in the public interest.
*Image: Deloitte via Wikimedia Commons