𝗦𝘂𝗺𝗺𝗮𝗿𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗡𝗔𝗳𝗿𝗮 𝗢𝗿𝗱𝗲𝗿 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗠𝘀. 𝗗𝗲𝗹𝗼𝗶𝘁𝘁𝗲 𝗛𝗮𝘀𝗸𝗶𝗻𝘀 & 𝗦𝗲𝗹𝗹𝘀 𝗟𝗟𝗣 𝗙𝗮𝘂𝗹𝘁 𝗮𝗻𝗱 𝗟𝗲𝗴𝗮𝗹 𝗕𝗮𝘀𝗶𝘀 The order issued by the National Financial Reporting Authority (NAfra) adjudicates penalties under the Companies Act, 2013, for violations of auditing standards during the statutory audit of a listed company. [img:jFYmwJg5Y]

𝗞𝗲𝘆 𝗹𝗲𝗴𝗮𝗹 𝗽𝗿𝗼𝘃𝗶𝘀𝗶𝗼𝗻𝘀 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: • Section 132(4): Empowers NAfra to penalize for professional misconduct or non-compliance with prescribed standards. • Relevant Auditing Standards (AS) as mandated under the Companies Act, 2013.

𝗗𝗲𝘁𝗮𝗶𝗹𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗙𝗮𝘂𝗹𝘁 𝗧𝗵𝗲 𝗹𝗮𝗽𝘀𝗲𝘀 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝗶𝗲𝗱 𝗶𝗻𝗰𝗹𝘂𝗱𝗲: • Non-compliance with specific auditing standards during the statutory audit. • Lack of professional skepticism, leading to incomplete evaluations of financial records. • Inadequate documentation and flawed procedures, compromising audit quality.

𝗣𝗮𝗿𝘁𝗶𝗲𝘀 𝗥𝗲𝘀𝗽𝗼𝗻𝘀𝗶𝗯𝗹𝗲 • 𝗔𝘂𝗱𝗶𝘁 𝗙𝗶𝗿𝗺: Ms. Deloitte Haskins & Sells LLP. • 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗣𝗮𝗿𝘁𝗻𝗲𝗿(𝘀): Key individuals responsible for the audit engagement.

Penalties Levied • 𝗔𝘂𝗱𝗶𝘁 𝗙𝗶𝗿𝗺: Imposed monetary fines and temporary debarment from auditing listed companies. • 𝗘𝗻𝗴𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗣𝗮𝗿𝘁𝗻𝗲𝗿(𝘀): Individual penalties, including fines and restrictions on professional practice.

𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗱 𝗔𝗰𝘁𝗶𝗼𝗻𝘀 𝟭. 𝗖𝗼𝗿𝗿𝗲𝗰𝘁𝗶𝘃𝗲 𝗠𝗲𝗮𝘀𝘂𝗿𝗲𝘀: o Address identified deficiencies in audit processes. o Strengthen internal controls to align with auditing standards. 𝟮. 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗣𝗮𝘆𝗺𝗲𝗻𝘁: o Ensure payment of penalties within 90 days as directed.