PracticeAuditDeloitte quits as auditor to American Apparel

Deloitte quits as auditor to American Apparel

Deloitte steps down as auditor of fashion retailer American Apparel after discovering information that could impact the previously stated 2009 year-end figures

Deloitte
has resigned as auditor of fashion retailer
American
Apparel
.

The US-listed business, which recently opened a shop within Selfridges, has
replaced Deloitte with its former auditor Marcum.

In a statement to the US markets regulator the
Securities and Exchange
Commission,
American Apparel said that information had come to
Deloitte’s attention that could materially impact the reliability of either its
issued audit report or the underlying financial statements for the year ending
31 December 2009.

Its auditors also identified internal controls weaknesses around financial
reporting, including the financial closing process.

“Deloitte has requested that the Company provide Deloitte with the additional
information Deloitte believes is necessary to review before the Company and
Deloitte can reach any conclusions as to the reliability of the previously
issued consolidated financial statements for the year ended December 31, 2009
and auditors’ report thereon,” American Apparel said in its statement.

Deloitte will respond fully to the new auditor’s requests for information as
part of Marcum’s inquiry.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

5d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter