Deloitte Anjin under criminal charge

Seoul - Prosecutors filed criminal charge on Deloitte Anjin, South Korea’s second-largest accounting firm, in the accounting fraud case against Daewoo Shipbuilding & Marine Engineering Co. (DSME), concluding that the shipbuilder was able to get away with accounting irregularities for years because of slack auditing. Three auditors and an executive also received separate criminal charges. Prosecutors accused the auditing company of organizational scheming from top executive to the working level.

Prosecutors said they created false audit documents and neglected their role to oversee the shipbuilder, allowing it to doctor the books to make huge losses look smaller or claim to have made profits over the past few years.

Upon the criminal charge, the Financial Supervisory Service (FSS) and the Securities Futures Commission will likely take separate administrative actions that could lead up to business suspension upon agreeing to Anjin’s liability.

(READ MORE)