What happened
They were hired to check something. Nobody checked them.
Worth telling in full, this one, because it happened at a firm where checking other people's work is the actual product.
An Australian government department runs a computer system that hands out penalties to people on benefits. No person looks at it, the system decides. They wanted an outside opinion on whether it worked properly, so at the end of 2024 they hired Deloitte to go through it. About 440,000 Australian dollars, so roughly a quarter of a million euros. The report came in that July.2
Then Chris Rudge read it. He does research at the University of Sydney, the subject sits close to his own work, and he was reading it because he was curious. He found more than a dozen references to studies that do not exist. A few were credited to people he knows, who had never written them. There was also a quote from a court judgment. The judgment was real. The quote was not.2
Deloitte said they had used AI in places, published a corrected version in October and paid back about 97,000 of the fee. The department said the conclusions still held.2
The bit I keep coming back to is that nothing was broken. There were reviewers. There was a quality process. A partner's name was on the cover. All of it did exactly what it was built to do, and nobody clicked a footnote.