Deloitte may face £15m penalty over Au­ton­omy fail­ures

The Daily Telegraph - Business - - Technology Intelligen­ce - By Michael O’Dwyer

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.”

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