Computer 2000 FD banned for 10 years

Computer 2000 accounting scandal
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John Stokdyk
Editor
AccountingWEB.co.uk
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Following a disciplinary investigation, the Financial Reporting Council (FRC) imposed a £35,625 fine and a ten-year ban on Philip James, the former finance director of technology distributor Computer 2000.

As the FD responsible for the financial statements of Tech Data Ltd (formerly Computer 2000) in the years ending 31 January 2012 and 2013, James admitted 12 allegations that his conduct fell significantly short of the standards reasonably to be expected of a member of the Association of Chartered Certified Accountants (ACCA).

The disciplinary investigation was launched in February 2014 after Computer 2000’s US parent company Tech Data restated its profits for the previous three years by $27m. An internal investigation identified control deficiencies, but the UK regulator wanted to dig deeper into the actions of qualified accountants in the local subsidiary, and EY as the auditor of its parent company.

Having admitted the complaints put to him, James agreed a settlement with the FRC that included:

  • Exclusion from the ACCA for a recommended period of 10 years; and
  • A £100,000 fine reduced to £35,625 to reflect mitigating factors, James’s financial resources, and a discount for settling the complaints without a full hearing.

The FRC statement included no further details about the Tech Data investigation, which continues in relation to the audit work of EY.

About John Stokdyk

About John Stokdyk

John Stokdyk is the global editor of AccountingWEB UK and AccountingWEB.com.

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10th Aug 2017 09:20

.

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10th Aug 2017 10:09

So what was it all about? Seems it was necessary to brush matters under the carpet too? Serious enough for £100K fine but not that serious really? Can anyone enlighten us?

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to The Black Knight
10th Aug 2017 10:36

Exactly.. is a bit click baity - just tell us the details rather than leave us hanging?

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10th Aug 2017 10:31

Its a bit light on detail of what he did, but its a warning to us all.

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10th Aug 2017 10:41

According to IT Industry newsletter "TheRegister" several staff changed following the profit warning in March, and by May interim successor Marco Preda was 'rebuilding vendor invoice and rebates processes to make sure they are "in line with where they should be".'

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By ShayaG
10th Aug 2017 15:33

Sounds like a Tescos job.

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By Dib
to ShayaG
10th Aug 2017 16:21

Oh yes, the Tesco accounting scandal. Not Tesco's Finest hour!

I'll just get my coat...

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