Deloitte Japan Violation of Auditor Independence Rules
Deloitte Touche Tohmatsu LLC (Deloitte Japan) paid $2 million to settle charges that it issued audit reports for an audit client at a time when dozens of its employees maintained bank accounts with the client’s subsidiary. According to the Securities and Exchange Commission (SEC), the accounts had balances that exceeded depositary insurance limits in violation of the SEC audit independence rules. Former Deloitte Japan executives Futomichi Amano and Yuji Itagaki settled related charges. The SEC found that Deloitte Japan violated the auditor independence provisions of the federal securities laws and that Amano and Itagaki caused those violations. The SEC also found that Deloitte Japan, Amano, and Itagaki caused the audit client to violate its reporting obligations, and that all respondents engaged in improper professional conduct.
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