SEC Charges Deloitte & Touche and Two of its Personnel for Failures in Their Audit of Just for Feet

The Securities and Exchange Commission today issued an Order instituting public administrative proceedings against Deloitte & Touche LLP based upon its failed audit in 1999 of the fiscal 1998 financial statements of Just for Feet, Inc., a now-defunct shoe and sports apparel retailer once headquartered in Birmingham, Alabama, for which the firm received audit fees of approximately $361,000. The engagement partner, Steven H. Barry, CPA, and the audit manager, Karen T. Baker, CPA, were also charged. Without admitting or denying the Order's findings, Deloitte agreed to accept a censure and pay $375,000 to settle the charges, while Barry and Baker each consented to a denial of the privilege of appearing or practicing before the Commission as an accountant. They can apply for reinstatement after two years and one year, respectively.

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