backOn February 12, 2025, the PCAOB issued a settled order against Gabriel Jaime López Díez, a former partner of Deloitte & Touche S.A.S. (“Deloitte Columbia”), for failing to perform necessary audit procedures and obtain sufficient audit evidence before issuing unqualified audit opinions on the 2016 financial statements of Bancolombia S.A. The Board alleged that López Díez and the engagement team altered the work papers, obtained audit evidence, and performed audit procedures after issuance of the audit opinions. López Díez also failed to adequately supervise the 2016 audit to ensure that the engagement team’s work was appropriately performed and documented and, specifically, that the results of the work supported the conclusions reached in accordance with PCAOB standards.
Without admitting or denying the Board’s findings, López Díez consented to the PCAOB’s order censuring him and imposing a $75,000 civil money penalty. The order also barred López Díez from being an associated person of a registered public accounting firm, with the option to file for Board consent to associate after two years. This is a settlement of a previously instituted litigated disciplinary proceeding. Notably, the terms of the settlement do not prohibit indemnification, offset, or insurance of the civil penalty, which is a change from recent practice.
The settled order is available here.