Irish regulator fines Deloitte over audit failure

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In its first major disciplinary ruling against a Big Four firm, the Chartered Accountants Regulatory Board (CARB) in Ireland has handed Deloitte a €41,000 penalty and given a severe reprimand over an audit failure.

In a statement releases on its website the CARB said that Deloitte “failed to demonstrate the adequacy and sufficiency of the audit work performed to support its audit opinion and is accordingly liable to disciplinary action” when dealing with a client company.

The regulator’s penalty consists of a €20,000 fine, €21,000 in additional costs, a reprimand and Deloitte being named in Accountancy Ireland magazine in October 2015.

According to a report by Irish broadsheet the Sunday Independent the issues relate to Lapple Ireland, a subsidiary of a German toolmaking company, for the years ended 31 December 2002 to 31 December 2004.

A statement from the Office of the Director of Corporate Enforcement (ODCE) found that these irregularities “were substantially caused by the manual substitution of incorrect figures over a number of years”.

The statement also outlined that published financial statements from the company “seriously misstated the true state of affairs at Lapple Ireland”.

Lapple Ireland ceased trading in 2007 after running a factory in Ireland for 30 years.

Speaking to the ‘Sunday Independent’ Deloitte stated that it has consented to this order (relating to audit documentation) as the issues occurred over a decade ago.

http://www.accountingweb.co.uk/article/deloitte-fined-irish-regulator-over-audit-failure/589364