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Deloitte Anjin Involved in Alleged Fraud


Tom Spencer

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Deloitte Anjin, the Korean member firm of Deloitte, may have been caught cooking the books.

 

Back in 2009, Ssangyong Motor fired more than 2,000 employees. Last week, and 5 years later, a Korean Appeals Court ruled that the layoffs were invalid because they were based on Deloitte Anjin's “wrong” evaluation of Ssangyong’s value.

 

The Ssangyong Case has led to of allegations that Deloitte Anjin engaged in accounting fraud.

 

The allegations could have serious implications for Deloitte Anjin since, even if unsubstantiated, they could damage its credibility and bottom line earnings in the Korean market.

 

The allegations could also have serious political implications since the Korean regulator, the Financial Supervisory Service, had previously cleared Deloitte Anjin of wrongdoing after an extensive investigation.

 

Potentially bad news for Deloitte, but a boon for its main rivals in the Korean market: Samil PwCSamjong KPMG Advisory, and Ernst & Young Korea.

 

For more details, read the Korea Times article.

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