The Audit Committee of Symmetry Medical, a global provider of orthopaedic devices, has announced an independent review of accounting irregularities at its Sheffield unit.

The review follows a management report earlier this week, citing imporoper accounting practices that include overstated revenues at the unit dating back to 1999, prior to the acquisition of the Sheffield operation in June 2003.

In its review, management estimates that the overstatement of revenue and income before taxes is in the region of $12m to $16m.

The employees believed to be involved in the inflated revenues – which include the senior vice-president for Europe – are no longer with the company, while others have been suspended pending completion of the review, CNNMoney.com reported.

The audit committee has already indicated that a restatement of financial statements for the relevant periods could follow.

Further reading:

Symmetry Medical Discloses Accounting Issues at Sheffield, UK Operating Unit and Possible Restatement

Symmetry Medical says UK unit overstated revenue

Symmetry: U.K. Accounting May Be Flawed