Deloitte man is fined over Serco scandal
ANOTHER accountant at Big Four firm Deloitte has been fined over the audit of Serco during the outsourcer’s electronic tagging scandal.
Ross Howard, 49, was slapped with a £78,000 penalty by the Financial Reporting Council, reduced from £120,000 for admitting misconduct early and ‘expressing contrition’.
Already this year the watchdog has ordered Deloitte to pay £4.2m in a settlement, while Helen George, who was the senior member of the audit team, was fined £97,500.
This takes Deloitte’s total fines over the Serco scandal to almost £4.4m.
Serco Geografix, a division of outsourcing giant Serco, dishonestly misled the Ministry of Justice from 2010-13 about the profitability of its contracts to electronically tag people released from jail.
Deloitte was penalised for signing off Serco Geografix’s audit in 2011 and 2012. George and Howard continue to work for Deloitte. The watchdog said that though they did not comply with audit standards, neither acted dishonestly, deliberately or recklessly.