Phoenix uncovers £14m accounting black hole

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Robert Lovell
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Data hosting provider Phoenix IT has warned that accounting irregularities over an 18-month period would put a £14m hole in its balance sheet.

Shares in the Cloud computing company fell 36% this week after it blamed the irregularities on a manager at its Servo subsidiary in Leeds.

The group suspended the employee in question pending the outcome of an independent forensic investigation carried out by PwC and law firm Nabarro.

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By reni_71
05th Sep 2012 21:08

Phoenix IT accounting irregularities

£14m over an eighteen month period? What are the control processes that have been "repeatedly and deliberately circumvented"? Begs the question whether this should be picked up during an external audit.


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to PracticePartner
06th Sep 2012 09:33

Rent_71- Phoenix
External auditors pick up/ rule changes mean they now rely
on balance sheet signed statement stating systems are adequate
I believe from october this year/ those signing the statement will
be subject to some personal liability if systems prove otherwise.

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