Wednesday, April 27, 2005

SEC Charges Deloitte & Touche for Adelphia Audit

The SEC's case against Deloitte & Touche has been settled, with a payment of $50 million dollars. Word to the wise for corporate insiders and auditors from Mark K. Schonfeld, Director of the SEC's Northeast Regional Office - "what is especially troubling here is that Deloitte recognized the risk of fraud posed by this client at the outset. When auditors turn a blind eye toward misconduct on a high-risk client and allow a fraud of this magnitude to go undetected, the consequences will be severe."
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