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 Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
- 2 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 3 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 4 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
- 5 New Tricks: Dennis Waterman to leave the show after a decade of crime-solving
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Ice Bucket Challenge: US firefighter Tony Grider dies after participating in charity craze near power lines
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...