eNCA | Deloitte faces 10 charges for African Bank work
JOHANNESBURG – Audit firm Deloitte has been charged with ten counts of misconduct.
Deloitte is facing a public disciplinary hearing into its audit work for African Bank ahead its 2014 collapse.
On day two of the hearing, details of the charges against Deloitte were read out.
The Independent Regulatory Board for Auditors began its investigation in 2014 and completed it in 2016.
One of the charges is that Deloitte did not challenge the bank management’s picture of its finances, which meant the auditors were not sceptical enough when it came to the bank’s books.
It further fell short of auditing standards and the code of ethics.
Despite red flags, Deloitte expressed a clean audit which, according to the Independent Regulatory Board for Auditors, was an incorrect audit clearance.
The auditors relied on the financial statements, which did not present the true state of affairs of the bank.
African Bank’s former BEE partners are suing old directors of Deloitte for R2.1-billion.
The hearings are set to end next week and commence again in September and October.
Deloitte is set to respond to charges next week.
The company is also at the centre of another accounting scandal involving retail giant Steinhoff.
eNCA