The National Financial Reporting Authority (NFRA) has imposed a penalty of ₹2 crore on Deloitte for failing to adhere to auditing standards in its role as the statutory auditor of Zee Entertainment Enterprises Ltd. The fine pertains to the lapses in auditing for 2018-19 and 2019-20 financial years.
The regulator found that Deloitte had been grossly negligent in its audit of Zee’s financial statements, citing multiple violations of the Companies Act concerning related party transactions. The firm was accused of not exercising professional scepticism, due diligence, and failing to challenge management’s assertions. Deloitte also failed to adequately evaluate reports of suspected fraud.
In addition to the penalty on Deloitte, individual auditors involved in the case have also been penalised. CA AB Jani, a key auditor in the case, was slapped with a fine of ₹10 lakh and has been debarred for five years from being appointed as an auditor or internal auditor. CA Rakesh Sharma, another auditor involved in the case, was fined ₹5 lakh and barred for three years from such roles.
Content retrieved from: https://www.cnbctv18.com/market/nfra-fines-deloitte-2-crore-for-zee-entertainment-audit-lapses-19529530.htm.
