Aero Inventory auditors under scrutiny

The profession's disciplinary body has launched an investigation into the auditors of failed aircraft parts wholesaler Aero Inventory.

The Accountancy and Actuarial Discipline Board (AADB) – which is part of the Financial Reporting Council (FRC) – will investigate Deloitte in its role as auditor as well as those chartered accountants in the company who were involved in the production of financial statements leading up to the company being placed into administration.

According to a FRC statement, the scope of the investigation is as follows:

“The conduct of Members and Member Firms in relation to the preparation, approval and audit of the financial statements of Aero Inventory and its subsidiary Aero Inventory (UK) Limited for the years ended 30th June 2007 and 30th June 2008 and the preparation, approval and review of the interim financial statements of Aero Inventory for the six months ended 31st December 2008.”

The AADB’s decision to initiate an investigation was taken following a reference from the ICAEW, however an investigation does not always mean an allegation has been made or any misconduct reported.

A Deloitte spokesperson told AccountingWEB.co.uk: “We are confident that we properly fulfilled our responsibilities as auditor and will cooperate fully with the AADB’s investigation.”

The ICAEW has not carried out a preliminary investigation and therefore has not identified specific matters that they would need to bring to the attention of the AADB.

KPMG was appointed administrator to Aero Inventory in November 2009 and in November last year applied to the courts for a two-year administration period extension.

Today KPMG issued a statement on the forthcoming relaunch of the business after signing a deal with global logistics business DHL.

The agreement will see the large majority of Aero Inventory’s US$400m of stock rationalised to a new DHL distribution centre in Singapore over the next six months.

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