SEC punishes Deloitte Japan for violating auditor independence rules
The Securities and Exchange Commission fined Deloitte Touche Tohmatsu LLC
$2 million for violating auditor independence rules and suspended its former CEO
director of independence for causing the violations.
The SEC said Wednesday that Deloitte Japan issued audit reports for a banking client while about 90 Deloitte Japan employees maintained accounts with the bank.
Deloitte Japan’s former CEO Futomichi Amano
former reputation and risk leader and director of independence Yuji Itagaki
“both engaged in improper professional conduct by violating the personal financial relationship provisions” of the SEC rules.
Amano and Itagaki also failed “to correct or disclose” their violations, according to the SEC’s administrative order (pdf).
Amano was barred from practicing before the SEC for at least two years
Itagaki was barred for a year.
During their suspensions they can’t appear or practice before the SEC as accountants or participate in the financial reporting or audits of public companies.
– The FCPA Blog