The Securities and Exchange Commission has charged two Grant Thornton affiliates in India and Australia with violating auditor independence rules based on their activities in the tiny island nation of Mauritius off the east coast of Africa.
The SEC settled administrative proceedings with Grant Thornton India LLP and Grant Thornton Audit Pty Limited in Australia. According to the SEC’s charges, the firms indicated in audit reports that they were independent of their respective audit clients when the clients paid fees to a consulting firm owned by two Grant Thornton partners in Maritius who served as board members for the audit clients. The Grant Thornton partners provided services that are prohibited under auditor independence rules, including controlling bank accounts and having authority to act on the audit clients’ behalf, the SEC says.
