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AFM investigate Deloitte with respect to Steinhoff debacle

In an endeavor to advance sensible and clear cash related markets, Dutch Authority for the Financial Markets (AFM) is investigating conditions which prompted Steinhoff’s widely publicised bookkeeping anomalies.

AFM confirmed in a statement on Friday that it is investigating Steinhoff financial statements audited by Deloitte.

“Recently international media paid much attention to alleged accounting irregularities at Steinhoff, “said AFM.

Following this disaster said AFM, Steinhoff issued a statement that an inquiry is taking place into these accounting irregularities.

The investigated firm, Deloitte is Steinhoff’s auditors.

Steinhoff is a South African furniture multinational with its statutory seat in the Netherlands, the offer costs of Steinhoff beginning late dropped by over 80% over a succinct time traverse.

The Dutch branch of Deloitte has been auditing Steinhoff financial statements since 2016.

“Deloitte issued a clean opinion over the 2015-2016 Steinhoff Financial Statements,” said AFM.

Steinhoff’s management resolved on December 13, 2017, that the 2016 Financial Statements do no longer meet the requirements as per Dutch law.

“Following that, Deloitte withdrew its approval to use their audit opinion. The publication of the 2016-2017 financial statements has been postponed,” said AFM.

“It is fundamental for a legitimate working of the capital markets that the suppositions issued by auditors are free from any weakness,” said AFM.

Democratic Alliance (DA) Shadow Minister of Finance David Maynier confirmed the investigations by AFM.

“I was informed by Martijn Duffels, Senior Supervision Officer, Audit, and Reporting, on Friday that AFM has decided to launch an investigation concerning the role played by Deloitte Accountants, reviewing the financial statement of Steinhoff International Holdings,” said Maynier.

He said swift move made by AFM follows his request on December 7, 2017, asking regulators in three jurisdictions, including AFM, the German-based Auditor Oversight Body and the Independent Regulatory Board of Auditors to investigate Deloitte Accountants to audit financial statements of Steinhoff International Holdings.

“We have to know whether Deloitte Accountants, chose not to see to bookkeeping inconsistencies at Steinhoff International. At last, we should pummel wrongdoing in the general population area, and intense on wrongdoing in the private part, and that is the reason we will guarantee that the bookkeeping anomalies at Steinhoff International Holdings, are completely examined both abroad and in South Africa,” said Maynier.

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