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AIDB to investigate iSoft accounting irregularities. By John Stokdyk

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25th Oct 2006
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The Accountancy Investigation and Discipline Board (AIDB) has launched an investigation into recent events at iSoft Group, the company caught up in the controversial NHS technology upgrade programme.

The investigation will focus on “the conduct of members and member firms in relation to the preparation, approval and audit of the Financial Statements of iSoft Group Plc for the financial years ended 30 April 2003, 2004 and 2005," the AIDB announced in a press release.

As the group's auditor, RSM Robson Rhodes will be under the microscope, along with qualified accountants who held executive or non-executive directorships during the period under review.

The Financial Services Authority is also investigating whether iSoft's financial statements misled investors.

Already struggling to keep its work on track for the NHS national programme for IT, iSoft delayed the announcement of its financial results this summer after discovering "possible accounting irregularities" in its recognition of revenues in previous years. The anomalies were brought to light by Deloitte, which took over the iSoft audit from RSM Robson Rhodes this year.

Former iSoft chief executive Tim Whiston, who left the company this year with a £700,000 compensation package, was the company's finance director between 2000 and 2004 and is likely to come in for scrutiny. One of iSoft's non-execs during this period was former CBI director-general Sir Digby Jones - who now acts as an adviser to Deloitte. Sir Digby resigned from iSoft's audit committee in 2003. Although the AIDB may want to interview him about the company's accounting practices and policies, he will not be subject to any charges as he is not a qualified accountant.

Part of the Financial Reporting Council, the AIDB has taken over responsibility for operating the profession's independent disciplinary scheme from the Joint Disciplinary Scheme - although the JDS will continue to work through its existing case load.

Like the JDS, the AIDB initially investigates whether there is a case for disciplinary proceedings. If there is evidence for misconduct charges, they are heard by an independent tribunal that normally sits in public. If complaints are upheld, fines can be levied and individuals can be banned from their institutes.

So far, the AIDB has initiated tribunals for complains against PricewaterhouseCoopers and two accountants arising from the Mayflower Corporation collapse. Investigations are also underway into Deloitte's role as auditor of the MG Group and Phoenix Venture holdings and issues surrounding the Emerging Business Trust in Ireland.

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By User deleted
27th Oct 2006 09:40

Also Accenture .....
How about also looking at Accenture - these guys seem to be 'teflon coated'; always managing to get Govt contracts and emerging squeeky clean when the whole thing turns into a disaster

Lets not forget Accenture's roots - they are essentially a Phoenix company spun off from Andersons. On this basis their pedigree is interesting

Just do a search on Google for their disasters - makes interesting reading

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