Basic Search  |  Summaries  |  Advanced SearchPenalty: £6,275,000
Year: 2016
Date: 10 November, 2016
Offence Group: financial offences
Offence Type: accounting fraud or deficiencies
Violation Description: The Financial Reporting Council announced the outcome of the independent Tribunal's disciplinary hearing concerning the conduct of Deloitte LLP and one of its partners in relation to the audit of financial statements of the AIM listed company Aero Inventory Plc and its subsidiary Aero Inventory (UK) Limited for the financial years ended 30 June 2006, 2007 and 2008. The three allegations brought by the Executive Counsel to the FRC concerned: the appropriateness of the accounting and disclosure in Aero's 2006 financial statements of the Garuda Transaction; the costs of sales and stock valuations in the 2006, 2007 and 2008 audits; and stock existence in the 2007 and 2008 audits. The Tribunal found all three allegations proved and that the conduct of Deloitte fell significantly short of the standards reasonably to be expected of a Member Firm. The Tribunal imposed a Severe Reprimand and a Fine of £4,000,000. It also ordered that Deloitte pay all the costs of the proceedings and ordered an interim payment on account of costs of £2,275,000.
Action Type: agency action
Agency: Financial Reporting Council
HQ Country of Parent: United Kingdom
Ownership Structure of Parent: privately held
Major Industry of Parent: business services
Specific Industry of Parent: accounting services
Source of Data: (click here)