The Public Company Accounting Oversight Board today sanctioned Gabriel Jaime López Díez, a former Deloitte Colombia partner, for issuing an audit report before completing all necessary audit procedures.
The PCAOB found that López and his engagement team, in the firm's 2016 integrated audit of Bancolombia, violated rules and auditing standards by failing to perform necessary audit procedures and failing to obtain sufficient appropriate audit evidence before issuing audit opinions.
According to the order, López and the team improperly altered audit documentation and, in several instances, obtained supporting audit evidence and performed audit procedures after the issuance of the audit opinions.
"If an auditor signs an audit opinion without having done the work necessary to support that opinion, investors are put at risk," PCAOB Chair Erica Williams said in a statement. "The PCAOB will take action to hold auditors accountable when they fail to prepare informative, accurate and independent audit reports."
López also violated PCAOB standards by failing to include, or causing the engagement team not to include, sufficient information to comply with the audit documentation standards.
"The PCAOB's broad oversight authority extends to registered non-U.S. firms that audit U.S. issuers and their associated persons," Robert Rice, director of the PCAOB's Division of Enforcement and Investigations, said in a statement. "Today's order serves as a reminder of the importance of the PCAOB's global reach and its mission to protect investors."
Without admitting or denying the findings, López consented to the PCAOB's order, which censured him, imposed a $75,000 civil money penalty and bars him from being an associated person of a registered public accounting firm, with the option to file for board consent to associate after two years.
