Deloitte Fined Record $19M Over Audit Failures

A U.K. investigation found the Big Four firm liable for “serious and serial failures” in its audits of software firm Autonomy.

Concluding a years-long investigation, the U.K.’s accounting watchdog has fined Deloitte a record 15 million pounds ($19.4 million) for “serious and serial failures” in its audits of software firm Autonomy.

The Financial Reporting Council’s investigation focused on Deloitte’s audits of Autonomy’s financial statements before the company was acquired for $11 billion by Hewlett-Packard in 2011.

After a seven-week hearing last year, an independent disciplinary tribunal found Deloitte and two former partners, Richard Knights and Nigel Mercer, were culpable of misconduct for audit failings related to the accounting and disclosure of Autonomy’s sales of hardware and its sales of software licenses to value added resellers.

The FRC announced Thursday that the tribunal had upheld its request for sanctions, with Knights and Mercer being fined 500,000 pounds and 250,000 pounds, respectively. The 15 million pound fine against Deloitte surpasses the previous record of 10 million pounds against Big Four rival PwC in 2018 over its audit of retailer BHS.

Source: CFO

Share on facebook
Share on Facebook
Share on linkedin
Share on LinkedIn