Deloitte may face £15m penalty over Autonomy failures
DELOITTE could be hit with a record £15m fine for failings in its audit of Autonomy, an IT company at the centre of an alleged multibillion-pound fraud.
The accounting watchdog asked a tribunal yesterday to fine the Big Four firm £15m after a ruling that it had failed to discharge its duty checking the books of Autonomy.
The former FTSE 100 firm became engulfed in scandal after being sold for $11bn (£8.7bn) to IT company Hewlett Packard in 2011.
The Financial Reporting Council also asked the tribunal to ban Richard Knights, Deloitte partner, from the profession and fine him £500,000.
It argued that Nigel Mercer, another Deloitte partner, should be fined £250,000 for his role.
Lawyers made the submissions after the tribunal in the case found serious failings on the part of the auditors.
A Deloitte spokesman said: “We acknowledge the seriousness of the findings of the FRC tribunal, although it is inappropriate to comment further on the hearing at this stage.”