Cadbury auditor steps down 'by mutual agreement'

Cadbury Nigeria's auditor Akintola Williams Deloitte is stepping down from the role after 40 years in the wake of the accounting issues that have plagued the subsidiary.

After conducting an imapirment review at the beleagured Nigerian arm Cadbury stated in its year-end results that the scandal had forced the company to issue a further £15m goodwill write-down. This followed a £23m exceptional charge in the wake of overstatements for 'current and prior years.'

Cadbury said: 'After more than 40 years of service, Akintola Williams Deloitte has resigned from its appointment as auditors to Cadbury Nigeria  by mutual agreement, effective immediately.

'Following the recent disclosure of overstatement in CN’s financial position and subsequent need for restatement, we mutually believe that it would be in the interests of shareholders and in the spirit of the highest standards of corporate governance for AWD to stand down.'

Cadbury Nigeria were careful to rule out any suggestion that the Deloitte division was involved in the deception that led to the overstatements:

'While, thus far, there has been no suggestion of complicity by AWD in the overstatements, AWD accepts that best practice in corporate governance requires that Cadbury Nigeria commences its rebirth on a completely fresh slate.'

Cadbury added:'A new auditor will be appointed by Cadbury Nigeria as soon as practicable.'

Further reading:

Cadbury sweats over Nigerian meltdown 

PBR 06: Brown delivers Cadbury 'insult' on CFCs 

Cadburys appoint independent auditor for African probe