Cyprus audit regulator acts on allegations over Deloitte and Abramovich assets

Nicosia, Cyprus. Cyprus’s state regulator for auditors, the public audit oversight board (Adeelep), said on Wednesday that it was acting on allegations that Deloitte Cyprus had helped hide assets belonging to Roman Abramovich.

Regulator’s response and potential conflicts

Adeelep general manager Panos Prodromitis told the Cyprus Mail that the board was pursuing all actions required by its statutory responsibilities, without specifying what steps it had taken.

Prodromitis remained employed by Deloitte Cyprus until 2009. His employment therefore overlapped with some of the alleged misconduct, which covered the period from 2003 to 2007.

Clarifying his role, he told the Cyprus Mail that he had joined Deloitte’s Nicosia office in 2003 and had not reached senior manager level until 2008. He pledged that “any conflict of interest will be declared and mitigated”.

In response to an approach from the Cyprus Mail, Deloitte Cyprus said it complied with applicable legislation. The firm declined to discuss the specific allegations, pointing to how old the documents were.

Legal framework and oversight responsibilities

Adeelep operates under the Auditors Law, which took effect on June 2, 2017, incorporating European Union auditing requirements into Cyprus’s legislation. The board developed from the public audit oversight commission, established in 2011.

The finance minister recommends candidates for the board’s president, vice-president and five other members, with appointments made by the cabinet. Each serves a six-year term that may be renewed once.

The board’s remit includes approving and registering all statutory auditors and audit firms, as well as establishing standards for ethics and quality.

It also carries out inspections of firms auditing public interest entities, including banks, insurers and listed companies. Those inspections take place at intervals of one, three or six years.