Embattled healthcare software supplier iSoft has suspended its commercial director Steve Graham after an initial inquiry found evidence of accounting irregularities affecting its 2004 and 2005 financial years.

In an statement to the LSE, iSoft said: 'The conclusion of the initial investigation is that there is evidence of irregularities affecting the financial years ended 30 April 2004 and 2005. The principal effects of this would appear to have been to recognise revenues earlier than they should have been. They do not have any effect on the cash position of the group.'

Under the circumstances, the board of iSoft said it was 'appropriate to suspend Steve Graham, who was commercial director at the time, pending the final outcome of the more formal investigation'.

One other employee has been put on special leave of absence, while other employees that appear to be involved have since left the group.

iSoft is a supplier for the £12.4bn overhaul of the NHS’s IT systems, which has been plagued by problems.