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PCAOB settles two actions against Deloitte affiliates

Tammy Whitehouse | December 5, 2016

The Public Company Accounting Oversight Board has settled two disciplinary orders against Deloitte affiliates in Brazil and Mexico involving charges of issuing false audit reports and failing to properly control audit documentation.

In Brazil, the PCAOB will collect from Deloitte Touche Tohmatsu Auditores Independentes a civil penalty of $8 million, the largest fine ever imposed by the PCAOB and the first case where the PCAOB has obtained an admission from a global network firm. The PCAOB says in its enforcement order the firm issued materially false audit reports and attempted to cover audit violations by altering documentation and providing false testimony.

Deloitte Brazil admitted it violated quality control standards and failed to cooperate with a PCAOB inspection and investigation, the PCAOB said. The board also sanctioned 12 former partners and other audit...

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