Questions mount for Deloitte over relationship with Autonomy
Deloitte faced more questions over its relationship with the software firm at the eye of a storm over alleged "accounting improprieties" yesterday, as a shareholder adviser said it had repeatedly raised concerns over the fees racked up by the auditor for other work.
PIRC, which advises pension funds investing £1.5trn in total, said that Autonomy had "raised a number of red flags" regarding corporate governance.
Hewlett-Packard bought the Cambridge-based firm for $10.3bn (£6.5bn) last year, but the US giant wrote off $8.8bn on Tuesday, accusing its former management of inflating the value of the firm and a "wilful" effort to mislead.
Autonomy founder Mike Lynch has denied all the allegations.
Alan MacDougall, the managing director of PIRC, said that Autonomy's board "lacked proper independent representation", adding: "Its auditor also raked in significant non-audit fees, which we found problematic".
PIRC said the sums Autonomy paid the accountancy firm for other services such as legislation, tax and corporate finance advice made up more than 25 per cent of the total the group paid Deloitte, a level the adviser considers significant in its assessment of whether an auditor is properly independent from its client.
Autonomy paid Deloitte $2.7m in 2010, with $1.5m described as total audit fees and the rest ($1.2m) described as non-audit fees.
Deloitte, who said that the share of non-audit work at Autonomy was declining, categorically denies knowledge of any impropriety and said it carried out its audit "in full compliance with regulation and professional standards".
HP is facing mounting questions over its due diligence on Autonomy because City analysts had been raising doubts for at least three years before the 2011 acquisition.
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
This 'woman calls police to order pizza' story isn't going where you're expecting
FCKH8's provocative anti-sexism video showing young girls swearing reinstated by YouTube
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
London bus driver 'kicks gay couple off for kissing'
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...