KPMG to probe Baker Tilly work at Sanctuary

KPMG to probe Baker Tilly work at Sanctuary

New auditor to look at Sanctuary Group’s 2005 numbers, which Baker Tilly took exception to

KPMG is set to scrutinise the work of Baker Tilly as part of the accounting
issues at Sanctuary Group.

The Big Four firm won the contract to audit the music company at last week’s
AGM, with investors voting to ditch Baker Tilly.

As part of KPMG’s work, it will need to look at the group’s 2005 numbers,
which Baker Tilly took exception to, opening up the prospect of further wrangles
and arguments as to how Sanctuary accounts for its revenues.

Baker Tilly had said in qualifying the group’s accounts that it had
understated losses in 2005 by £15.9m.

Steve Maslin, head of assurance services at Grant Thornton, said that KPMG
might have to change some of Sanctuary’s 2005 numbers: ‘To the extent that
there’s comparable information, if it believes those comparatives are wrong.’

The move to ditch Baker Tilly has raised questions as to whether or not a Big
Four firm would have been treated in the same way.

Maslin played down the fears. ‘If there is a breakdown of trust between
auditors and management, something needs to give,’ he said. That would happen
where a Big Four firm was involved as much as with a mid-tier firm, he said.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource