Auditor concern raised over Birmingham City missing funds
Owners of Birmingham City FC 'concerned' that its former auditors failed to spot a suspected £2.5m misappropriation of funds
CONCERNS about the audit process at Birmingham City FC have been raised, after claims that millions of pounds may have been misappropriated from the club.
The owners, Birmingham International Holdings, told the Hong Kong Stock Exchange that it believed HK$30m (£2.5m) were suspected of misappropriation by a former employee – Hong Kong Police are investigating.
Its auditor for the period was JH CPA Alliance, which resigned from the role last November, with “no disagreement or unresolved matter” between the two parties in relation to its departure, the group said at the time.
The missing funds could have a material impact on the operations and financial situation of the group. The group’s board said it was “concerned” that the suspected misappropriation was not raised by its auditor for the year ending 30 June 2014.
“The board will consider setting up an investigation committee to look into the suspected misappropriation and see how to improve the internal control system of the company,” it said in a statement to the stock exchange.
Birmingham International’s shares, suspended from 4 December, will continue to be so until further notice, the group added.