|
NFRA penalises Deloitte Haskins & Sells LLP, 2 Auditors for lapses in ZEEL Audits
The NFRA has fined Deloitte Haskins & Sells LLP and penalized two chartered accountants for auditing lapses with Zee Entertainment Enterprises Ltd during the financial years 2018-19 and 2019-20. The auditors failed to report unauthorized financial transactions involving fixed deposits and guarantees. The penalties include monetary fines and debarment from audit work for several years.
The National Financial Reporting Authority (NFRA) has imposed a fine of Rs 2 crore on Deloitte Haskins & Sells LLP as well as penalties on two chartered accountants for lapses in auditing of Zee Entertainment Enterprises Ltd during 2018-19 and 2019-20 financial years. Along with slapping a fine of Rs 10 lakh, A B Jani has been barred from taking up any audit work for 5 years while the fine is Rs 5 lakh on Rakesh Sharma and the debarment period is 3 years.
Jani was the Engagement Partner (EP) and Sharma was the Engagement Quality Control Review (EQCR) Partner for the audit of the company for 2018-19 and 2019- 20.
The regulator had suo motu examined the audit file for the statutory audit of Zee Entertainment Enterprises Ltd (ZEEL) for the given periods to assess whether the auditor committed any professional misconduct.
After examining the audit file and responses of the audit firm to its queries as well as other records, NFRA said prima facie the auditors had not discharged their professional duties under the Companies Act as well as the Standards on Auditing (SA).
In its 30-page order dated December 23, NFRA said auditors failed to meet the relevant requirements of the SAs and violated the Act in respect of certain significant related party transactions.
|
