Global audit firm Deloitte has been fined about Rs 2 crore by the National Financial Reporting Authority (NFRA) for alleged lapses in auditing Zee Entertainment Enterprises Ltd (ZEEL).
This is not the first time Deloitte has been fined for auditing lapses.
In the last five years, many other countries including the US, China, and Canada fined Deloitte for ignoring audit standards.
In China, Deloitte’s operations faced regulatory scrutiny from domestic and international authorities. In September 2022, the US Securities and Exchange Commission imposed a fine of $20 million on Deloitte’s Chinese affiliate. The fine was imposed on the firm for asking its clients to do their audit work on their own, which was a direct violation of auditing standards. Following this, in March 2023, Chinese regulators imposed a fine of 211.9 million yuan ($30.8 million) for flaws in auditing China Huarong Asset Management Company. This fine was imposed on Deloitte by Chinese regulators for not maintaining quality in audits.
In September 2023, in the South American country of Colombia, Deloitte & Touche S.A.S. was fined $9,00,000 by the Public Company Accounting Oversight Board (PCAOB) for violating quality control. In April 2024, the PCAOB imposed fines of $1 million each on Deloitte’s affiliates in Indonesia and the Philippines for exam cheating and other violations, reflecting a lack of adherence to auditing standards and professional conduct.
Deloitte had to pay a fine of $1.5 million in 2024 for violating professional conduct rules in Canada’s Ontario Province. Canadian auditors said that the company had failed to follow the necessary guidelines.
These cases have raised questions about Deloitte’s ability to apply consistent standards across its global network. As part of the Big Four, the firm operates under complex regulatory frameworks in a variety of countries, making compliance an ongoing challenge.