SEOUL, Apr. 6 (Korea Bizwire) — South Korea’s financial regulator on Wednesday confirmed a one-year suspension of new audits by Deloitte Anjin LLC, as punishment for the firm’s accounting irregularities of troubled Daewoo Shipbuilding & Marine Engineering Co.
Until April 4 next year, Deloitte Anjin has been barred from signing new audit contracts, the Financial Services Commission (FSC) said in a statement.
About 150 companies of Deloitte Anjin’s some 1,100 clients are expected to be affected by the suspension, according to industry observers.
The FSC also confirmed a fine of 1.6 billion won (US$1.42 million) against Deloitte Anjin for falsifying a stock-related document.
In 2015, the financial regulator conducted a near one-year investigation into Deloitte Anjin over its failure to uncover measures taken by Daewoo Shipbuilding to cook its books so as to make its snowballing losses in 2013 and 2014 look smaller.
Last December, prosecutors indicted Deloitte Anjin and some 10 employees on charges of aiding and abetting Daewoo Shipbuilding’s fraudulent accounting practices worth 5.7 trillion won.