ACCOUNTING IRREGULARITIES have been discovered at online technology business Phoenix IT, which has called in PwC to conduct an independent investigation into the books.
A statement said that it discovered a mis-statement of a number of accounting balances following organisational changes in its finance function, and a number of internal reviews.
However, the company claims the irregularities are limited to its subsidiary Servo which it acquired in 2006.
“The information currently available suggests that certain control processes within the finance function at Servo Limited’s Birstall site in Leeds have been repeatedly and deliberately circumvented,” the statement said.
Following the discovery, a manager in the Birstall finance function has been suspended and a business review is underway.
PwC and legal firm Nabarro will conduct an independent forensic investigation. However, no timeframe of when that investigation is due to end has been given.
The company estimates that the impact of correcting the mis-statement of accounts would lower its assets by up to £14m on a post-tax basis.
Phoenix IT hopes to report an adjustment to the financial statements in the group’s half-year results, expected in November.
So for anyone dismissing Pokemon, and in fact any developments in modern culture - I’d respectfully suggest pulling your head out of where the sun doesn’t shine
Advisers are uncertain as to when HMRC will release its consultation document for its Making Tax Digital project
Charles Tilley's departure from CIMA leaves the accounting world quieter, but his institute with an exciting foundation
Top 50+50 firm Begbies Traynor recorded pre-tax profits of £4.5m for the year, boosted by its property services unit, despite seeing insolvencies drop to its lowest level since 2004.