Deloitte fined £4.2m over Serco scandal

Deloitte has been fined £4.2m by the Financial Reporting Council (FRC) as the accounting firm audited Serco’s Geografix division over the electronic tagging scandal.

Helen George, Deloitte’s audit partner has been fined £97,500 and both George and the firm have been “severely reprimanded” after admitting misconduct.

The FRC said they have arranged for all audit staff to undergo a training programme to improve the behaviour at the heart of the misconduct.

The FRC said, Deloitte and George “failed to act in accordance with the fundamental principle of professional competence and due care.”

This comes after Serco was fined £19.2m plus £3.7m in costs by the Serious Fraud Office (SFO) on Wednesday, no criminal charges were bought.