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HP intends to sue Deloitte over Autonomy audit

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26th Aug 2014
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HP has said it intends to sue Deloitte over its role in auditing former UK subsidiary Autonomy. 

In a long-running legal battle between the two technology firms, HP stated its intention to sue the UK branch of the Big Four firm at a San Francisco court this week.

But Deloitte said that it would defend itself against any claim and added no claim had been filed at this time.

A spokesperson said: “HP has apparently indicated that it intends to pursue a claim against Deloitte UK. Any possible claim would be utterly without merit and we will defend ourselves strongly against it. 

"Deloitte was not engaged by HP, or by Autonomy, to provide any due diligence in relation to the acquisition of Autonomy. Deloitte UK was auditor to Autonomy at the time of its acquisition by HP. Deloitte UK conducted its audit work in full compliance with regulation and professional standards.”

HP acquired Autonomy for US$11bn in 2011. However a year later it accused the subsidiary of accounting improprieties after it had to write down US$8.8bn on its acquisition.

Autonomy was also accused of misleading HP over the true value of the firm.

HP called in KPMG to conduct due diligence work before the acquisition, effectively reviewing Deloitte's auditing of Autonomy, but both Big Four firms failed to spot any accounting errors.

According to the Guardianthe fraud has prompted investigations by the US Securities and Exchange Commission, Federal Bureau of Investigation and the UK Serious Fraud Office.

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By redboam
03rd Sep 2014 12:23

Untouchable?

Seeing as the big four including Deloittes appear to have effortlessly walked away from the banking crisis and multiple Libor manipulations despite having consistently signed off accounts as being "true and fair" - I don't fancy HP's chances.

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