Disciplinary tribunal for two Deloitte partners over audits of scandal-hit software giant Autonomy
Deloitte partners Richard Knights and Nigel Mercer are facing a disciplinary tribunal over their audits of Autonomy
Two partners at Deloitte face a disciplinary tribunal over their audits of scandal-hit UK software giant Autonomy.
Richard Knights and Nigel Mercer failed to properly challenge the company’s accounts, the Financial Reporting Council claims.
The regulator said the case will be heard on Thursday, October 10, at the International Dispute Resolution Centre in London.
Autonomy is at the centre of the biggest fraud trial in English legal history, with Hewlett Packard Enterprise (HPE) mounting a £4billion damages claim against its former bosses.
HPE alleges that Autonomy founder Mike Lynch and others cooked the books to make their company appear more valuable before it was sold to Hewlett Packard for £11billion eight years ago.
They are said to have done this by artificially inflating Autonomy’s quarterly revenues.
Deloitte, responsible for checking the company’s accounts, initially faced legal action from HPE as well but it has since struck an out-of-court settlement over the claims.
Lynch has denied any wrongdoing and insists that if fraud took place he was not aware of it.
His lawyers say Deloitte was made fully aware of how all the company’s figures were calculated and that he was ‘fully entitled to rely in good faith’ on the auditor.
If the tribunal finds against the accountants, it can ban them from the profession or fine them.