Deloitte has been ordered to pay a record fine of £15m plus legal costs of £5.6m for committing serious misconduct when it audited Autonomy, a former FTSE 100 technology group at the centre of one of the UK’s biggest accounting scandals.
The Big Four accounting firm and two of its audit partners failed to act with integrity, objectivity or professional scepticism when they vetted Autonomy’s financial statements and disclosures to regulators in the years leading up to its disastrous acquisition by Hewlett-Packard for $11bn in 2011, an independent tribunal found.
The sale was followed by an $8.8bn writedown by HP of the value of Autonomy, a fraud investigation, court proceedings in the UK and US — including against its founder Mike Lynch — and a jail sentence for its former chief financial officer, Sushovan Hussain.
The original full article can be found at ft.com
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