Financial Reporting Council

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.

A total financial sanction of £26,500,000, reduced by 30% to £18,550,000 to reflect the firm’s co-operation and admissions;

A total financial sanction of £3,500,000, reduced by 30% to £2,450,000 to reflect the firm’s co-operation and admissions;

The breaches found in Decision 1 were not dishonest and in the majority of cases were not intentional, deliberate or reckless.

and four findings of a lack of objectivity

KPMG failed to gather sufficient appropriate audit evidence to enable it to conclude that the financial statements were true and fair

Carillion was a very important client for both KPMG and key members of the audit team during the relevant years. This created a risk to their objectivity.

“These findings are damning. We have cooperated fully with the investigation, and we accept its conclusions and the sanctions that have been imposed without reservation. I am very sorry that these failings happened in our firm.”