Deloitte Australia Faces Misconduct Allegations, 24 Employees 'Exited' In 2024

Deloitte Haskins & Sells LLP has been fined by the National Financial Reporting Authority for lapses in auditing Zee Entertainment Enterprises Ltd. during the financial years 2019 and 2020. However, Deloitte Australia, in its recent annual report, stated that it has investigated 206 misconduct allegations over the past year and found nearly 70%, or 206, were substantiated, leading to 24 employees being “exited” from the consulting firm.

The people involved in the other 120 substantiated cases either received an unspecified “reprimand,” were sent to counselling, or were made to take additional training, according to the firm’s latest annual report.

However, the firm did not reveal if any of them were of a sexual nature or of a bullying nature.

This wasn't the first time that the firm had been pulled up for inappropriate behaviour by its employees. In 2022 the firm had reported that fourteen allegations of sexual harassment were made by the employees at the firm, with investors finding 12 of them as substantiated.

While only six of them had exited the firm, the other six were reprimanded.

In 2018, it has dismissed approximately 20 partners in the UK over the past four years due to inappropriate behaviour, including bullying and sexual harassment, the firm’s CEO, David Sproul, had told Financial Times.

This revelation comes amid the #MeToo movement, which highlighted widespread sexual harassment, particularly in professional environments.

The NFRA on Tuesday found that Deloitte failed to meet the requirements of the Companies Act and Standards on Auditing while reviewing Zee Entertainment’s financial statements. The investigation focused on lapses in handling significant related party transactions, which the auditors allegedly did not address adequately.

In a statement, Deloitte acknowledged the NFRA order and stated that it is reviewing the findings to determine its next steps. The firm clarified that the penalties involve two retired partners, seeking to distance its current operations from those involved in the case.