Deloitte in the U.K.

Deloitte has been fined £15 million, severely reprimanded and has agreed to provide a Root Cause Analysis of the reasons for the Misconduct

An independent Disciplinary Tribunal made findings of Misconduct following a seven-week hearing during October and November 2019

Mr Knights, and thus Deloitte, were liable for failures to act with integrity and objectivity.

They failed to exercise adequate professional scepticism and to obtain sufficient appropriate audit evidence.

Deloitte should not have issued unqualified audit opinions in these years based on the audit evidence obtained.

We regret that the FRC tribunal has ruled that aspects of our audit work on Autonomy between 2009 and 2011 fell below professional standards required.

At all times we believe we acted professionally, diligently and in good faith and we disagree with the findings.

Among these were Deloitte, who alongside KPMG, EY and PwC comprise the “Big Four” audit and professional services firms.

Deloitte acted as Carillion’s internal auditors, charging on average £775,000 a year since 2010.

Although Deloitte made a number of recommendations through their internal audit reports, they rarely identified issues as high priority. Only 15 out of 309 recommendations between 2012 and 2016 were deemed as such.

Over the course of the last decade, they collectively received £51.2 million for services to Carillion, a further £1.7 million for work for the company’s pension schemes and £14.3 million from Government for work relating to contracts with Carillion.