Business

‘Deloitte Haskins did not comply with auditing norms’

Flagging multiple lapses, the National Financial Reporting Authority (NFRA) has said that Deloitte Haskins and Sells LLP failed to comply with auditing standards in carrying out statutory audit of IL&FS Financial Services and did not question the management over inflating profit by over Rs 180 crore.

migrator

New Delhi

Issuing its first Audit Quality Review (AQR) report, the watchdog has concluded that quality control system and processes of Deloitte Haskins and Sells LLP (DHS) are “severely inadequate and ineffective,” as per a release. Further, the NFRA would examine whether disciplinary actions need to be initiated in the matter. The AQR report is for the statutory audit conducted by DHS for IL&FS Financial Services Ltd (IFIN) for the 2017-18 period.


“NFRA concluded in this report that the failure to comply with the standards on auditing are of such significance that DHS did not have adequate justification for issuing the audit report asserting that the audit was conducted in accordance with the standards on auditing. The crisis at diversified IL&FS group, which had also sparked off concerns in the overall financial system, came to light late last year.

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