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Deloitte Anjin ordered to suspend new audits for 1 year over Daewoo Shipbuilding

2017/03/24 16:30

SEOUL, March 24 (Yonhap) -- South Korea's financial regulator on Friday ordered accounting firm Deloitte Anjin LLC to suspend conducting new audits for one year as punishment for "systematically ordering and turning a blind eye" to accounting fraud by the troubled Daewoo Shipbuilding & Marine Engineering Co.

The punishment was announced after a meeting of the Securities & Futures Commission, a regulatory body under the Financial Services Commission, earlier in the day.

Deloitte Anjin was also ordered to pay 1.6 billion won (US$1.43 million) for falsifying a stock-related document and will be barred from conducting an audit on Daewoo Shipbuilding for five years.

Starting in late 2015, the financial regulator had 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.