The Chile Financial Market Commission (CMF) Board sanctioned EY Servicios Profesionales de Auditoría y Asesorías Limitada and former EY partner Eduardo Rodríguez Barrios with fines of UF 600 and UF 300, respectively, for infringements of the Law on the Securities Market and Generally Accepted Auditing Standards (NAGAs) in audits of securities issuer Factotal S.A.’s financial statements for fiscal years 2020 and 2021. The CMF found the firm and the former partner breached duties requiring external auditors to act with due care, diligence and professional skepticism, and to obtain sufficient evidence to support the professional judgments expressed in audit reports. The case arose from a complaint by Factotal S.A., which alleged the auditor failed to detect or report irregular transactions, leading to improper financial information being entered into the company’s accounting system; the CMF highlighted the role of external auditors in supporting the reliability of financial information reported to the market and the CMF.
Chile Financial Market Commission 2025-09-26
Chile Financial Market Commission fines EY audit firm and former partner UF 600 and UF 300 for breaches in Factotal audits
The Chile Financial Market Commission fined EY Servicios Profesionales de Auditoría y Asesorías Limitada and former EY partner Eduardo Rodríguez Barrios for violating the Law on the Securities Market and Generally Accepted Auditing Standards. The sanctions concern audits of Factotal S.A.’s 2020 and 2021 financial statements, where auditors failed to act with due care, leading to improper reporting. The case underscores the critical role of external auditors in ensuring financial information reliability.