PracticeConsultingNew probe into £35m Wiggins ‘error’

New probe into £35m Wiggins 'error'

Wiggins auditor HLB Kidsons and a non-executive director are facing investigation after the UK's financial reporting regulator forced the company tocut its 2000 profits by £35m.

Chris Dickson, executive counsel of the Joint Disciplinary Scheme, will examinethe role of Lance Blackstone, chartered accountant and chairman of the leisureto construction group’s audit committee, and that of the auditors from mid-tierfirm Kidsons.

A spokeswoman for Kidsons said the firm was aware it might be subject to aninvestigation and it intended to fully comply with any probe once it hadreceived official notice from the institute.

Geoffrey Lansbury, Wiggins finance director since 1987, is also expected to facedisciplinary investigation from his professional body, the Chartered Instituteof Management Accountants. ACCA-qualified Leslie Inwood, company secretary forthe leisure and construction group, could also appear before an internaldisciplinary board at his institute.

An ACCA spokesman said: ‘We are aware of the concerns surrounding the WigginsGroup but beyond that we cannot make any specific comments.’

The ICAEW referred the case to the Joint Disciplinary Scheme following a reviewof the Financial Reporting Review Panel’s findings published in March.

Wiggins was forced to restate its accounts by millions of pounds for the lastfive years, turning each to a loss. Its £25.1m profits for the year to 31 March2000 became a Pounds 9.9m loss. Profits going back to 1995 also turned to losses, after a dispute over revenue recognition and development costs.

Speaking at the time of the reissue, Richard Sykes QC, chairman of the FRRP,said investors should be able to rely on Wiggins’ published accounts, but couldnot because of accounting errors.

Links

Wiggins faces FSA probe over profits

Wiggins reassures shareholders

FSA investigates £74m error at Wiggins

Wiggins FD faces disciplinary action

Wiggins forced to restate accounts

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

3m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

9m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

10m Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

11m Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

11m Stephanie Wix, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

10m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

10m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

10m Kevin Reed, Writer