MCRO Micro Focus International Plc

   By Adria Calatayud 
 

The U.K. Financial Reporting Council said Thursday that it will take disciplinary action over alleged accounting irregularities by British software company Autonomy Corporation PLC's former auditors and finance chiefs.

The FRC found that the conduct of auditors Deloitte LLP, Richard Knights and Nigel Mercer, as well as of Autonomy's former chief financial officer Sushovan Hussain and former vice president of finance Stephen Chamberlain, fell short of required standards.

The investigation relates to Autonomy's financial reporting between Jan. 1, 2009 and June 30, 2011, the FRC said. This was prior to Autonomy's takeover by the former Hewlett-Packard, which was later split into two companies--HP Inc. (HPQ) and Hewlett Packard Enterprise Co. (HPE). Last year, HPE sold its software operations--including the former Autonomy assets--to FTSE 100-listed Micro Focus International PLC (MCRO.LN).

The FRC said the auditors failed to adequately challenge Autonomy's accounting and to correct false or misleading made by the company to the regulator. Both Mr. Hussain and Mr. Chamberlain are alleged to have breached the principle of integrity over the company's reports and accounts for 2009 and 2010, in relation to its accounting for transactions with value-added resellers and by making false or misleading statements to the regulators, the FRC said.

Write to Adria Calatayud at adria.calatayudvaello@dowjones.com

(END) Dow Jones Newswires

May 31, 2018 03:10 ET (07:10 GMT)

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