Deloitte, an international company specialized in providing auditing, tax, consulting and advisory services is under fire following the recent Steinhoff scandal. In the light of the events faced by Steinhoff International, the South African accounting watchdogs and the Independent Regulatory Board for Auditors (IRBA) have launched efforts for investigating Deloitte’s audit in regards to the scandal. A share price collapse, brought on by the disclosed details regarding accounting irregularities has caused a loss in the value of many pension holders globally. The investigation will extend to audit work performed by the South African branch of Deloitte conducted between 2014 and 2016. The timing, however, will be dependant on the evidence presented when all associated parties involved in the irregularities have been articulated.
As mentioned earlier, the scandal has caused detrimental losses for government works living off pension funds invested in Steinhoff International. The Steinhoff news can be said to have alarmed many who have invested their funds in the international corporation. However, a statement from the Finance Minister, Malusi Gigaba, has been released to assure them that investigative measures have been put into action. In addition to this, he has also assured that procedures have been put in place to reduce the scandals’ impact on investments and jobs of citizens, with a priority to pensioners.
In addition to this, the Dutch Authority for the Financial Markets (AFM) has also commenced their efforts in looking into the Deloitte for its’ involvement in auditing the retail giant. Amid embattled times for Steinhoff International, AFM will place their attention on the source of the suspected corruption on both local and international frontiers.
As a closing remark, the public will only regain their assurance after a thorough and detailed report of the investigation is issued and published. The reclaiming of confidence in investors will be a challenge for both Steinhoff International and Deloitte in the coming years.