Another one for the ever growing collection of audit failures. From Report on Business (Canada):
An appeal panel of the Institute of Chartered Accountants of Ontario has upheld a decision against three current and retired partners of Deloitte & Touche LLP who were accused of making errors while auditing failed theatre company Livent Inc. in 1998. The appeal committee decision, released yesterday, upheld a 2007 decision against retired Deloitte partners Douglas Barrington and Anthony Power, as well as current partner Claudio Russo. The appeal committee also upheld fines of $100,000 and investigation costs of $417,000 levied against each of the three men. The fines are the biggest financial penalties ever imposed by the ICAO. The institute did not allege the auditors should have discovered an ongoing accounting fraud at Livent, but said they made errors during the audit of the company’s 1997 year-end financial statements related to issues such as Livent’s recognition of theatre naming rights.
[My emphasis]
It’s good to see an oversight board starting to dish it out where appropriate. These fines and cost awards are trivial when compared to the potential civil penalties but they open to the door to further action. Hat tip to my friends in Canada – you know who you are. 
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