Michael Morrel, the former chairman of Deloitte's governing body in Brazil, is barred from associating with a PCAOB-registered firm for five years, and required to pay a civil penalty of $35,000 (£28,000).

Juarez Lopes de Araújo, Deloitte Brazil's former CEO and managing partner, is permanently barred from associating with a PCAOB-registered firm, for his refusal to cooperate with the regulator’s investigation into the issuing of materially false audit reports for the 2010 financial statements of a Brazilian airline called Gol Intelligent Airlines.

In December 2016 the PCAOB issued Deloitte Brazil with a record $8m (£6.3m) civil penalty for ‘some of the most serious misconduct it has ever uncovered’ in relation to this audit, which included the improper alteration of documents and provision of false testimony to investigators.

Claudius Modesti, director of PCAOB enforcement and investigations, said: ‘The order announced against the former chairman of Deloitte Brazil makes clear that the misconduct at the firm went all the way to the top, and our investigation persisted until we uncovered the extent of wrongdoing.

‘The order against the former CEO demonstrates that individuals who refuse to cooperate with Board investigations face some of the stiffest sanctions.’

According to the PCAOB, Morrell became aware during the investigation into Deloitte Brazil that firm personnel had improperly altered work papers and were giving false documentation and information to PCAOB investigators. He concurred in the plan to continue misleading the PCAOB.

The PCAOB sanctioned Araújo for refusing to testify in the PCAOB investigation about any knowledge he had of the firm's provision of false documents and information to PCAOB investigators.

Morrell and Araújo neither admitted to nor denied the findings in their respective orders. Neither is currently associated with Deloitte Brazil.