Aero Inventory auditors investigated

AN INVESTIGATION into the auditors of collapsed airplane parts manufacturer Aero Inventory has been launched by the profession's disciplinary body.

The Accountancy and Actuarial Discipline Board, part of the Financial Reporting Council, will look at the work conducted by Deloitte auditors and members of the ICAEW that were employed at Aero Inventory.

The listed company suspended shares on the main market in October 2009 due to problems with reported inventory levels in its accounts for both 2008 and 2009.

However, Deloitte refused to sign off on the 2009 accounts.

A statement from AADB said: "The conduct of members and member firms in relation to the preparation, approval and audit of the financial statements of Aero Inventory plc and its subsidiary Aero Inventory (UK) Limited for the years ended 30 June 2007 and 30 June 2008 and the preparation, approval and review of the interim financial statements of Aero Inventory plc for the six months ended 31 December 2008."

An investigation does not mean an allegation has been made or any misconduct has been reported.

A statement from Deloitte said: "We are confident that we properly fulfilled our responsibilities as auditor and will co-operate fully with the AADB's investigation."

The ICAEW referred the inspection to the AADB but has not carried out a preliminary investigation itself.

Jim Tucker, Richard Heis and Allan Graham, partners from KPMG, were appointed joint administrators to Aero Inventory in November 2009.

In November last year the administrators applied to the courts to extend the administration period by two years.