On October 31, 2008, the Board issued the Anderson Order that resulted from Anderson’s violation of PCAOB rules and auditing standards when he served as engagement partner for Deloitte’s audit of the fiscal year 2003 financial …show more content…
This transferring was approved by the Group leader, Deloitte’s Leader Oversight Committee (“LOC”). After transfer, Deloitte permitted Anderson to become and remain an associated person by engagement in activities in connection with public company audits, such as participating and developing Deloitte’s quality control policies and procedures. Anderson also provided advice to Deloitte’s audits of fiscal year-end 2009 financial statements of three clients. He communicated directly with members of an audit engagement team who was looking for advice from Deloitte’s National Office. Deloitte did so with knowledge of Anderson Order and without consent of …show more content…
He also participated in three nation office consultations with public company audit engagement teams. The term “associated person” is defined as any individual proprietor, partner, shareholder, principal, accountant, or other professional employee of a public accounting firm, or any other independent contractor or entity that, in connection with the preparation or issuance of any audit report - (i) shares in the profits of, or receives compensation in any other form from, that firm; or (ii) participates as agent or otherwise on behalf of such accounting firm in any activity of that firm (Act § 2 (a)(9)). According to PCAOB Rule 1001(p) (i) and Rule 5301(b), prohibits a registered public accounting firm from permitting a person subject to a suspension or bar, in connection with the preparation or issuance of any audit report, to (i) share in the profits of, or receive compensation in any other form from, such firm, or (ii) participate as agent on behalf of such a firm in any activity of that