U.S auditing company Deloitte has been sanctioned by Russia's Federal Treasury, the Kommersant newspaper reported Wednesday.
The Russian Treasury suspended Deloitte and Touche CIS from Russia's self-regulatory Auditing Chamber of Russia, preventing the company from taking part in tenders or entering into new contracts for the next 30 days.
The Federal Treasury has not announced the reasons behind the sanction, but Deloitte's press service said that an unannounced spot-check was carried out in relation to work done in 2014.
Cases of audit companies having their membership suspended in self-regulatory organizations are relatively rare, with only five firms suffering similar sanctions in 2015.
“Such injunctions are issued after the discovery of serious violations,” said Olga Nosova, the director of the Commonwealth self-regulatory organization, told Kommersant. In practice, it often means that a violation of auditor ethics has taken place, or that an individual without proper accreditation has signed off on a contract, she said.
Deloitte can now challenge the sanction in court, Kommersant reported. Its membership to the Auditing Chamber of Russia will be automatically reinstated when the company corrects the initial violation.
The move comes as a serious blow at what is considered to be "peak season" for the industry. Deloitte stated that it does not expect the sanction to have a “significant effect” on its relations with clients.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
