Deloitte's 2011 Autonomy Independent Auditor "All Clear" Sign Off

Tyler Durden's picture

For your Arthur Andersen nostaglia pleasure, we present Deloitte's February 2011 sign off on the firm's 2011 full year results. And to avoid the Twinkie Tsunami and beat the rush, be sure to buy your soon to be collectible, pre-petition HP-12C now before the imminent price surge occurs.

First, on what Deloitte provided to Autonomy:

External Advisers

During the year, the committee relied on information contained in generally available reports from Deloitte LLP, Towers Perrin and Hewitt.  Deloitte LLP also supplied market data, advice on market practice and governance, performance analysis and advice on plan design and performance measures. Deloitte is also the company auditor and its advice in relation to remuneration has been provided in compliance with the terms of reference of the Audit Committee and the Ethical Standards of the Auditing Practices Board.

* * *


We have audited the financial statements of Autonomy Corporation plc for the year ended 31 December 2010 which comprise the Consolidated Income Statement, the Consolidated and Company Statements of Comprehensive Income, the Consolidated and Parent Company Balance Sheets, the Consolidated and Parent Company Statements of Changes in Equity, the Consolidated and Parent Company Cash Flow Statements, the consolidated related notes 1 to 33 and the Parent Company related notes 1 to 10. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act 2006.

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance  that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s and the parent company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements.

Opinion on financial statements

In our opinion:

  • the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2010and  of the group’s profit for the year then ended;
  • the group financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union;
  • the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006; and
  • the financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the group financial statements, Article 4 of the IAS Regulation.

Separate opinion in relation to IFRSs as issued by the IASB

As explained in note 2 to the group financial statements, the group in addition to complying with its legal obligation to apply IFRSs as adopted by the European Union, has also applied IFRSs as issued by the International Accounting Standards Board (IASB).

In our opinion the group financial statements comply with IFRSs as issued by the IASB.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion:

  • the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006; and 
  • the information given in the Directors’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

We have nothing to report in respect of the following.

Under the Companies Act 2006 we are required to report to you if, in our opinion:

  • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
  • the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting records and returns; or
  • certain disclosures of directors’ remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.

Under the Listing Rules we are required to review:

  • the directors’ statement contained within the Directors’ Report and note 3 in relation to going concern;
  • the part of the Corporate Governance Statement relating to the company’s compliance with the nine provisions of the June 2008 Combined Code specified for our review; and
  • certain elements of the report to shareholders by the Board on directors’ remuneration.


Nigel Mercer (Senior Statutory Auditor)

for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditor
Cambridge, England
22 February 2011

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fonzannoon's picture

I can't wait to see Nigel's Linkedin profile on here in a few minutes. I wonder if he also sold a shitload of gold in 2000.

GetZeeGold's picture



That's an HP calculator......better brush up on my reverse polish notation skills.

ihedgemyhedges's picture

Well, this firm used to be referred to as "Toilet and Douche".  Ahhhh, the good ole days are back........

pasco35's picture

This company is as sorry as Best Buy!!!



Sylvia Plath's picture

Dated a accountant from Deloitte, and she always said that they did their job when they were able to delivery just this piece of paper to the client while stiffing them at $1000 per hour for what? 

Terminus C's picture

Did she dump you for your inability to put together a proper sentence?

Sauk Leader's picture

Read that about 4 times to see if I was missing something.

fourchan's picture

Deloitte is the last accountant for every scam company because they

will fudge the figures to the end. directed accounting they call it.

Water Is Wet's picture

Good thing he put that retardation in all bold.  All-bold comments are from dickheads.

Scalaris's picture

Slept with an accountant from PwC once (twice); hotter than a skillet forged in hell. 

When I found out that she was engaged to be married, I fell into depression for eight, maybe nine even, minutes.

Worst eight -or nine- minutes of a ten-minute segment I've experienced back in that day of that month of that year which perhaps was two or maybe three years ago, of my entire life.

I'll never forget her, or her name which I'm 100% certain that starts with M or N.

/male prowess

The Grip's picture

+1 for use of the MP switch. 

dogbreath's picture you're a rug muncher

Harlequin001's picture

There's a reason why I don't invest in stock markets...

buzzsaw99's picture

There's also a reason that I do. ;)

surf0766's picture

Can you say Big 3 ?

Angry White Dude's picture

Not bloody likely. After Arthur Andersen was destroyed and something like 80K jobs were lost worldwide, the feds will never give one of the large accounting firms the proverbial death penalty. Kinda like how SMU was a one time nuclear bitch slap from the NCAA. 

Urban Redneck's picture

If JPM & Blackrock are TBTF then so is Deloitte

ArkansasAngie's picture


Is it too late for claw backs?

Wait ... Obama is going to buy more computers to right housing

ghengis86's picture

This is why I love ZH. Not that the exposé the latest fraud like this one; fraud stories are a dime a dozen.

It's the exposure of the institutional fraudulent system we are currently saddled with that makes our market such a joke. Ratings agencies and auditors paid by their clients to polish turds, finance with free money from the Fed and sell ahit sandwiches to the masses under the guise of a market system.

No mainstream news outlet dares to question the status quo and baked-in fraud that ZH brings to light each and every day.


aint no fortunate son's picture

Never trust a guy named Nigel, well, except Farraday

GetZeeGold's picture




Taught Chuck Norris everything he knows about karate

Chuck Norris's picture

Nope he didn't.  Learned everything I know from Tyler Durden.

q99x2's picture

Nothing wrong with the economy that a quality accounting firm cannot fix.


overmedicatedundersexed's picture

keep it up and somebody might think laws are for dummies.

LongSoupLine's picture

again, tell me why Shapiro and Holder are not fired, let alone not sharing a cell with Madoff?!?



fucking horseshit!

Acet's picture

The local head honcho here in the UK (David Cameron) just recently made a speech to the Confederation of Business and Industry (read: local big corp association) where he's saying we need to worry less about dotting the Is and crossing the Ts, so he wants to reduce judicial reviews and make it harder to start one.

Guess this Auditors' Report is just an early example of less dotting of Is and crossing of Ts.

Bicycle Repairman's picture

Sometimes you've got to cross the Is and dot the Ts.

StychoKiller's picture

It's the moving of decimal points that should be of concern...

csmith's picture

Fantastic 12C app available for both iPhone & iPad need for the Polish Pop Tart

ceilidh_trail's picture

My 12c dates from 1988 and is still running strong. Keep your iCrap. Thanks anyway...

LawsofPhysics's picture

More "mark to fanstasy" accounting.

Boilermaker's picture

Charge $10M for the audit.

Defraud investors.

Get fined $1M for the fraud.

Rinse, repeat.

LawsofPhysics's picture

good work, if you can get it.  The smart money wants to see the underlying collateral on all this "valuation".  Still waiting for that earth-shattering ka-boom, unfortunately there is indeed a sucker born every minute.

surf0766's picture

And this story is now not news. Housing is taking off like a rocket. /s

tocointhephrase's picture

Time to clean it up......


Edit: Pun intended

q99x2's picture

Must have been an old cookie.

Northeaster's picture

"Deloitte LLP"

Nothing to see here:

They all know each other, and it's all corrupt.

buzzsaw99's picture

All they need now is for Moody's to stamp everything AAA.

youngman's picture

I still have my HP-12C...used it this morning to see how much gold was costing me on my next purchase......

NoDebt's picture

Ugh.  I need to go buy some Blackberry stock.

I'm almost serious about that.  Run a 3-month on RIMM vs. HPQ.

buzzsaw99's picture

rimm worth about three fiddy imo.

yogibear's picture

Boys in the financial world know it's all about perception. Make a turd look like a gem and you have hoards of investors knocking on your door. 

Fraudsters and Con men, Bernanke and the Fed is pushing people into risky investments. There are plenty of suckers out there. Huge sums of money to take. The people will just throw money at the M&A people. So take it.


mess nonster's picture

Here's the story, so the one half of you don't have to dig, and the other half don't have to pretend you know what this article was about:


NEW YORK (AP) — Hewlett-Packard Co. said Tuesday that a British company it bought for $10 billion last year lied about its finances, resulting in a massive write-down of the value of the business.

HP is avoiding calling it a fraud, but it said there were "serious accounting improprieties, disclosure failures and outright misrepresentations at Autonomy Corporation PLC."

HP is taking an $8.8 billion charge in its latest quarter to align the accounting value of Autonomy with its real value. It said most of that charge was due to the fictional bookkeeping at Autonomy.

The revelation is another blow for HP, which is struggling to reinvent itself as PC sales shrink.

Among other things, Autonomy makes search engines that help companies find vital information stored across computer networks. Acquiring it was part of an attempt by HP to strengthen its portfolio of high-value products and services for corporations and government agencies.

And here is a little ditty I heard this morning:

Deloitte, naughty Deloitte

Deloitte, you made it worth too much.



StychoKiller's picture

Thank the Maker that Hp measuring equipment was split off (Agilent) -- if only they coulda kept the Hp brand name...

Downtoolong's picture

HP should have picked up a copy of Websters dictionary with their Autonomy PLC purchase. After all, isn't that one definition of autonomy, i.e., we can say and do whatever the hell we want?

Maybe if the company goes bankrupt the Fed can pick up the name cheap? It fits. On second thought, they'll probably pay through the nose for it too, just like everything else they buy.


drivenZ's picture

look at all these acquisitions...That's always a red flag when looking for possible fraud. Not to mention all the execution risk that these rollup-esq companies are taking. Someone didnt do their DD. 


"Autonomy floated in 1998 on the EASDAQ exchange at a share price of approximately £0.30. At the height of the "dot com bubble", the peak share price was £30.[5]

In December 2005 Autonomy acquired Verity, Inc., one of its main competitors, for approximately US$500m.[6] In 2005 Autonomy also acquired Neurodynamics.[7]

In May 2007, after exercising an option to buy a stake in technology start up Blinkx Inc, and combining it with its consumer division, Autonomy floated Blinkx on a valuation of $250m.[8]

In July 2007 it acquired Zantaz, an email archiving and litigation support company, for $375m.[9]

In October 2007 Autonomy acquired Meridio Holdings Ltd, a UK company based in Northern Ireland that specialised in Records Management software, for £20m.[10]

In January 2009 it acquired Interwoven, a niche provider of enterprise content management software, for $775m.[11] Interwoven became Autonomy Interwoven and Autonomy iManage.

In June 2010 the company announced that it was to acquire the Information Governance business of CA Technologies. Terms of the sale were not disclosed.[12]

On 16 May 2011 Autonomy acquired Iron Mountain Digital, a pioneer in E-discovery and online backup solutions provider, for $380m from Iron Mountain Incorporated.[16]"