RSM Robson Rhodes, the former auditor of healthcare software company iSoft, is to be investigated by the AIDB for its audits of the troubled group in 2003, 2004 and 2005.
iSoft, which is
already facing a Financial
Services Authority probe over its revenue policies, has had to write-off
millions of pounds in profits because of imprudent revenue recognition and the
use of an off-balance sheet credit facility.
Analysts believe that it will take years for the company to recover from the
damage inflicted by its accounting problems. The group has plunged out of the
top half of the FTSE 350 and posted a pre-tax loss of £344m for the year to 30
Investigation and Discipline Board will also investigate the executive and
non-executive directors at the group. Former chief executive,Tim Whiston, and
Patrick Cryne, could both be investigated by the profession’s watchdog.
It has long been suspected that the AIDB would become involved in the iSoft
matter, but analysts fear the move has come too late.
‘The investigation may be good for revenge, but the stable door has been open
for a long time now and the horses have already run across to the next county,’
one analyst said.
iSoft declined to comment. Robson Rhodes said it would co-operate with the
AIDB, but emphasised it was not aware of any allegations against the firm.