A Glimpse Into Deloitte Audit.

mp
4
 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 ..

US$ 46.2 B FY 2019

US$ 43.2 B FY
2018

US$ 38.8 B
FY 2017
 AUDIT

DELOITT
F.
E
TAXATION
ADVISORY
(SERVICE
S)

CONSULTI
NG
 1970's 1980's 1990's 2000's 2010's Today

MODEL OF CHANGE

Technology

Individual

Business

Public Policy
 CASE ANALYSIS ……..
STAGE STAGE STAGE
1 2 3
Deloitte LLP 4 accountant and Deloitte looses fight
wrongly gave bill of former partners were against regulator
health & autonomy accused to it for over Autonomy and
accounts for 2009 & being overly cosy gets Euro 15 million
2010 with the company. fine.

Auditor were in Independent It was a long

under pressure to auditing needs to be running battle of
approve an there and allowing it Deloitte with
aggressive to make misleading regulators over its
accounting claims about the botched audits of
methodology. strength of its technology giant
finances. autonomy and
severely
reprimanded for
misconduct.
AUTONOMY INSIGHTS

Company Was the

Audit
founded
Client of
in 1996 by Deloitte
Mr Lynch. UK

Accounting
Taken over misconduct
by HP in found by HP
2011 after take
over $5B
H.P. INSIGHTS

HP
founded in Take over
1939 by Bill
Hewlett & Autonom
David y in 2011
Packard
Head- Claimed
Office the Audit
based at misconduct
Palo Alto, by Deloitte
California in
U.S.A Auditing.
FRC INSIGHTS

Regulate
Financial
Accounts,
Reporting
Council of
Audit &
UK Corporate
governance

Setting FRC finds

standard for anomalies in
good the Deloitte
practices in audit for
accounting. Autonomy.
 STAGE- 1 ……..

Accounting firm Autonomy

failed to act with findings and
Integrity Deloitte audit

Practices during 2009- Disastrous

2010 and found in acquisition by HP
2011 for $11B

Deloitte to
$5.5 Billion explain why it
accounting fraud and failed to
extra paid by HP prevent such
serious failure.
 STAGE- 2 ……..

Former partner
CEO of becomes too
Autonomy close with
autonomy.

Deloitte took
FRC accused
the Deloitte for all
responsibility these practices &
& supported misconduct.
 STAGE- 3 ……..

Decision came in the Deloitte losses

Deloitte, Autonomy favour of HP – Hewlett fight with
Company and misconduct Packard who alleged to regulator over
with HP misconduct of accounting Autonomy &
with over $5 Billion fines Euro 15
Million.

Deloitte lead audit Partner’s found

guilty and banned for 5 years for Accountant loose appeal at the
accounting practices. Tribunal over failing to ask
enough of technology giants
sales before it was sold to
Mr Knights finned with euro Hewlett Packard at $9
5,00,000 & Mr Mercer finned euro BILLION.
2,50,000
 OUTCOME ……..

Deloitte
Partners - Hewlett
Autonomy Packard
Audit losses $5B

FRC
Judgement

Deloitte loose the case ending up with paying Euro15M and legal cost of Euro5.6M for
committing serious misconduct when it Audit Autonomy.
 CONCLUSION ……..

Audit
Acc. To
Fraud
FRC Deloitte - its Partners
among 3 Audit done in 2009-10
involved in the and came out in 2011
misrepresentation of during the buying of
accounting data Autonomy by HP
during the audit

It is one of the UK’s Misrepresentation of

biggest accounting
scandal. Sign of weak
management and
business ethics on
Autonomy part.
accounting of nearly
$5 Billion and to
which HP goes to
tribunal & end up by
Deloitte paying for it.
 PROPOSAL ………
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 ………
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.
 PRECAUTION’S ………
H.P. Deloitte Autonomy
If past CEO’s If Deloitte not If they would
and the officials only just trust have opted the
have informed his partners who transparent
HP regarding did the audit but business
autonomy. also practices &
conduct check doing business
for attracting
If H.P. for the same that
the audit done shareholder.
investigate about
Autonomy and was transparent
its US fraud, loss and acc. to If they don’t do
of $5B would accounting the same
not happen. standards or not. accounting fraud
as did in USA
 SUMMING-UP ………
Trusting
partners with
no cross
verification
internally and
externally.

Where What
Acquiring the
Where decision
Deloitte company without
prior checking of H.P. went laid
went accounts and
Autonomy
background. wrong?
wrong? to this?
Autonomy
showed the weak
management
internally and
externally with
neglecting
business ethics
in USA & UK