Sanctions against Deloitte and Helen George in relation to the audit of Serco Geografix Limited
04 July 2019
The Financial Reporting Council (“FRC”) has imposed sanctions against Deloitte LLP (“Deloitte”) in relation to the audit of the financial statements of Serco Geografix Limited for the years ended 31 December 2011 and 2012, and against its audit engagement partner, Helen George, in relation to the year ended 31 December 2011, following their admissions of Misconduct.
- Deloitte has been fined £6,500,000 (discounted for settlement to £4,225,000) and been severely reprimanded. The firm will also pay £300,000 towards the costs of the investigation;
- Ms George has been fined £150,000 (discounted for settlement to £97,500) and been severely reprimanded;
- In addition, Deloitte has arranged for all its audit staff to undergo a training programme (designed to the satisfaction of the FRC) aimed at improving the behaviour that is the subject of the Misconduct.
Deloitte and Ms George failed to act in accordance with the Fundamental Principle of Professional Competence and Due Care.
The terms of settlement were agreed by the FRC’s Executive Counsel on 7 January 2019 and approved by a legal member of the independent Tribunal Panel.
The Settlement Agreement and the Particulars of Fact and Acts of Misconduct are not published at this time.
Notes to editors:
A copy of the settlement agreement (published on 25 July 2019) can be viewed here
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