September 14th in Uncategorized by jason2009 .
Non-Audit Fees: Deliotte and Phoenix Four under Fire
Oh dear. The fallout from the Phoenix Four scandal spreads
Deloitte has come under criticism in the report probing the collapse of MG Rover, the former Midlands car giant, but received praise for some of its work.
The 850-page study into the collapse of the former car giant, which left creditors £1.3bn out of pocket, has finally gone public after four years of investigation and a £16m bill for the taxpayer.
The report shows Deloitte made £28.75m in non-audit fees between 2000 …
Oh dear. The fallout from the Phoenix Four scandal spreads
Deloitte has come under criticism in the report probing the collapse of MG Rover, the former Midlands car giant, but received praise for some of its work.
The 850-page study into the collapse of the former car giant, which left creditors £1.3bn out of pocket, has finally gone public after four years of investigation and a £16m bill for the taxpayer.
The report shows Deloitte made £28.75m in non-audit fees between 2000 and 2005, 15 times more than it received in total audit fees.
Corporate finance advice generated most of these revenues.
“Such transactions included Project Platinum, for which Deloitte received a fee of £7.5m. Project Aircraft, for which Deloitte received fees of £1,925,000 plus VAT, and Project Trinity, for which Deloitte received fees of £1,099,078 plus VAT,” the report said.
Business Secretary Lord Mandelson has decided the report should be referred to the Financial Reporting Council.
However, Deloitte’s role as auditors was largely praised.
Full Story from Accountancy Age
