Audit watchdog investigating Deloitte Cyprus run by a former manager

The public audit oversight board (Adeelep), the state regulator of auditors, said on Wednesday it was acting on allegations that Deloitte Cyprus helped conceal Roman Abramovich’s assets. Its general manager, Panos Prodromitis, worked at Deloitte Cyprus until 2009, a period that overlaps with part of the 2003 to 2007 alleged misconduct. But Prodromitis clarified to the Cyprus Mail that he joined the Nicosia office in 2003 and only became a senior manager in 2008. He assured that “any conflict of interest will be declared and mitigated”, and said the board was “taking all necessary actions” within its legal duties but gave no detail of the steps. When approached by the Cyprus Mail, Deloitte Cyprus says it acts in accordance with applicable law and declined to comment on specifics, citing the age of the documents. The board exists under the Auditors Law, in force since June 2, 2017, which brought European Union audit rules into Cypriot law. It grew out of the public audit oversight commission, created in 2011. Cabinet appoints its president, vice-president and five members on the finance minister’s recommendation, for six years, renewable once. The board approves and registers every statutory auditor and audit firm and sets ethics and quality standards. It inspects firms that audit public interest entities, such as banks, insurers and listed companies, every one, three or six years. It can demand documents, inspect firms, open investigations and refer matters for criminal prosecution. Smaller audits are monitored by the institute of certified public accountants under its oversight. Disciplinary cases go to a committee of three chaired by former district court president Nikos Yiapanas, where fines can reach €100,000 for an individual auditor and €1 million for a firm. The state pays 20 per cent of the board’s forecast annual costs, while the remainder comes from the institute, auditors of public interest entities and external auditor. Fines go to the consolidated fund, not the board itself, and its budget needs the finance minister’s approval before going to the House, and the auditor-general audits its accounts. The board has one published sanction, issued in September 2025 against A. V. Savvides & Partners and its owner Aristos Savvides. Both admitted breaches in the 2017 audit of a public interest entity, which was not named. Each was barred from such audits for three years. The firm was fined €40,000 and Savvides €20,000.