Deloitte Anjin is suspended for one year and given fine

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Deloitte Anjin is suspended for one year and given fine

The Financial Services Commission made a final ruling Wednesday to impose punitive measures on Deloitte Anjin, the nation’s second-largest accounting firm, for its role in accounting fraud by Daewoo Shipbuilding & Marine Engineering between 2010 and 2014.

The decision by the nation’s top financial regulator came after its regular meeting on Wednesday. The FSC initially determined on March 24 that Anjin had turned a blind eye when DSME cooked its books between 2011 and 2014 and decided on a one-year suspension and 1.6 billion won ($1.4 million) fine on the accounting firm.

With the punishment finalized, Anjin will not be able to sign any new contracts until April 4, 2018.

Anjin on average audits about 1,100 companies in Korea per year and the firm could lose out on as much as 80 percent of its potential business for the next year due to the suspension.

Companies that were former clients of Anjin will have to find a new auditor.

To minimize confusion, the FSC said it will allow the companies to notify the authority of auditing contracts by early June. Normally, companies are obliged to report to the FSC their auditing contracts by early May.

By Choi Hyung-jo

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