DELOITTE has launched an appeal against its £14m fine for failing to properly handle conflicts of interest when working with MG Rover.
“We recognise the general desire to move on from this case but do not agree with the main conclusions of the tribunal which we feel could create significant uncertainty for individual members and member firms of the [accountancy trade body] ICAEW,” said a Deloitte spokesperson yesterday.
The group was hit with the record penalty earlier this month after the accountancy watchdog’s tribunal found that it ignored possible conflicts of interest between the defunct car company and its owners.
MG Rover fell into administration in 2005, five years after a group of local businessmen known as the Phoenix Four bought the company for a token sum of £10.
The panel criticised Deloitte for not telling its audit client Rover to get independent advice once the Phoenix Four had taken over the firm from BMW in 2000.
The Financial Reporting Council, which brought the case against Deloitte, has been given stronger sanctioning powers after criticism it was too lenient in the past.