Audit regulators have leveled another enforcement action against Deloitte in Mexico, disciplining three partners for failures in cross-border audits that affected U.S. audit opinions.
The Public Company Accounting Oversight Board barred, fined, and censured three partners at Deloitte’s affiliate firm in Mexico, Galaz, Yamazaki, Ruiz Urquiza, S.C. The PCAOB says the three partners failed to properly evaluate loan loss reserves in 2013 and 2014 for a Mexico-based subsidiary of Texas-based loan provider EZCORP. The three partners also failed to evaluate the operating effectiveness of certain internal controls, and they compounded the problem by misrepresenting their work to Deloitte in the United States, the PCAOB says.
