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U K Watchdog Finds Deloitte, Former Partners Failed to Challenge Autonomy s Accounting

Deloitte and Messrs. Knights and Mercer failed to fulfill their duty to check the reliability of Autonomy’s financial reporting, according to the report, which also noted that Autonomy was listed in the FTSE 100 at the time, the country’s index of its largest publicly traded businesses. “Autonomy was an important client for Deloitte generally, and for the Cambridge office in particular. It was the only FTSE 100 company audited from that office,” the FRC said. In September, the FRC fined Deloitte £15 million ($19.5 million) and sanctioned Messrs. Knights and Mercer in relation to the Autonomy audits. On Wednesday, the two former partners said they disagreed with the report’s findings, adding that “at all times, we believe we acted professionally, diligently and in good faith.”

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