Deloitte's Netherland Affiliate Settles with PCAOB on Independence/QC Matter

DECEMBER 14, 2016    RECENT DEVELOPMENTS  

The PCAOB settled a disciplinary matter on December 13 with a Deloitte Touche Tohmatsu affiliate/member firm   in the Netherlands, Deloitte Accountants BV ("the firm"), for independence and quality control failures.  The settlement, which resulted in a censure and civil money penalty of$300K against the affiliate, involved two Deloitte audit clients; RBS Holdings NV and Reed Elsevier NV, during the 2011-2012 financial statement periods.  Specifically, the spouse of the firm's CEO held financial interests in both clients through a Dutch family foundation trust on whose board she served (i.e., was a decision maker for the trust).  In addition, the PCAOB determined that the firm's system of quality control over independence was inadequate in that the firm, between 2009 and 2012, failed to review the interests of five persons appointed to leadership roles in the firm.

The Wall Street Journal also reported on this matter.