Insights to Audit Fraud among the UK companies Deloitte, HP, and Autonomy.

2. A Glimpse Into Deloitte
Audit.mp4

3. DELOITTE INSIGHTS
O Deloitte was founded in 1845, London U.K , England by William
Welch Deloitte.
O The headquarters is at the Paramount Plaza, New York City (NY)
USA.
O The chairman is Sharone Thorne and C.E.O is Punit Renjen
O In FY 2020 Deloitte touches the aggregate revenue of $47.6
Billion
O As of 2020 globally 3,30,000 employees work for Deloitte.
O A Company that was born 176 years ago ..

6. 1970's 1980's 1990's 2000's 2010's Today
MODEL OF CHANGE
Technology
Individual
Business
Public Policy

7. CASE ANALYSIS ……..
Deloitte LLP
wrongly gave bill of
health & autonomy
accounts for 2009 &
2010
Auditor were in
under pressure to
approve an
aggressive
accounting
methodology.
STAGE 1
4 accountant and
former partners were
accused to it for
being overly cosy
with the company.
Independent
auditing needs to be
there and allowing it
to make misleading
claims about the
strength of its
finances.
STAGE 2
Deloitte looses fight
against regulator
over Autonomy and
gets Euro 15 million
fine.
It was a long
running battle of
Deloitte with
regulators over its
botched audits of
technology giant
autonomy and
severely
reprimanded for
misconduct.
STAGE 3

8. AUTONOMY INSIGHTS
Company
founded in
1996 by Mr
Lynch.
Was the
Audit
Client of
Deloitte UK
Taken over
by HP in
2011
Accounting
misconduct
found by HP
after take over
$5B

9. H.P. INSIGHTS
HP founded
in 1939 by
Bill Hewlett
& David
Packard
Take over
Autonomy
in 2011
Head-Office
based at
Palo Alto,
California
U.S.A
Claimed
the Audit
misconduc
t by
Deloitte in
Auditing.

10. FRC INSIGHTS
Financial
Reporting
Council of
UK
Regulate
Accounts,
Audit &
Corporate
governance
Setting
standard for
good
practices in
accounting.
FRC finds
anomalies in
the Deloitte
audit for
Autonomy.

11. Accounting firm
failed to act with
Integrity
Practices during 2009-
2010 and found in
2011
$5.5 Billion
accounting fraud
and extra paid by
HP
STAGE- 1 ……..
Autonomy
findings and
Deloitte audit
Disastrous
acquisition by HP
for $11B
Deloitte to
explain why it
failed to
prevent such
serious
failure.

12. Deloitte took
the
responsibility
& supported
CEO of
Autonomy
Case
Filled by
HP
STAGE- 2 ……..
FRC accused
Deloitte for all
these practices &
misconduct.
Former partner
becomes too
close with
autonomy.
Deloitte former
partner alleged
& suspected

13. Deloitte, Autonomy
Company and
misconduct with HP
Deloitte lead audit Partner’s found
guilty and banned for 5 years for
accounting practices.
Mr Knights finned with euro
5,00,000 & Mr Mercer finned euro
2,50,000
Decision came in the
favour of HP – Hewlett
Packard who alleged to
misconduct of
accounting with over $5
Billion
Deloitte losses
fight with
regulator over
Autonomy &
fines Euro 15
Million.
Accountant loose appeal at
the Tribunal over failing to
ask enough of technology
giants sales before it was
sold to
Hewlett Packard at $9
BILLION.
STAGE- 3 ……..

14. Deloitte loose the case ending up with paying Euro15M and legal cost of Euro5.6M for
committing serious misconduct when it Audit Autonomy.
Hewlett
Packard
losses $5B
Deloitte
Partners -
Autonomy
Audit
FRC
Judgement
OUTCOME ……..

15. CONCLUSION ……..
Deloitte - its Partners
involved in the
misrepresentation of
accounting data
during the audit
It is one of the UK’s
biggest accounting
scandal. Sign of weak
management and
business ethics on
Autonomy part.
Acc. To
FRC Audit done in 2009-10
and came out in 2011
during the buying of
Autonomy by HP
Misrepresentation of
accounting of nearly
$5 Billion and to
which HP goes to
tribunal & end up by
Deloitte paying for it.
Audit
Fraud
among 3

16. 1. Building a strong internal check
committee in the organizations.
2. Auditing needs to be taking care of
all accounting standards as governed.
3. Business Ethics needs to be revived
for better transparency .
PROPOSAL ………

17. PROPOSAL ………
4. Need to create a monitoring
department to keep a overall check.
5. Amendments in the guidelines for
Audit companies and auditors.
6. Framing guidelines for companies
responsibility & business ethics.

18. If past CEO’s
and the officials
have informed
HP regarding
autonomy.
If H.P.
investigate about
Autonomy and
its US fraud, loss
of $5B would
not happen.
H.P.
If Deloitte not
only just trust
his partners who
did the audit but
also
conduct check
for the same that
the audit done
was transparent
and acc. to
accounting
standards or not.
Deloitte
If they would
have opted the
transparent
business
practices &
doing business
for attracting
shareholder.
If they don’t do
the same
accounting fraud
as did in USA
Autonomy
PRECAUTION’S ………

19. SUMMING-UP ………
Where
Deloitte
went
wrong?
Trusting
partners with
no cross
verification
internally and
externally.
Acquiring the
company without
prior checking of
accounts and
background.
Autonomy
showed the weak
management
internally and
externally with
neglecting
business ethics
in USA & UK
Where
H.P. went
wrong?
What
decision
laid
Autonomy
to this?