PracticeAuditInterserve board interrogated by shareholder

Interserve board interrogated by shareholder

Shareholder demands to know who is responsible for accounting irregularities in letters from his lawyer

A former Interserve shareholder has sent lawyer’s letters to the embattled
buildings maintenance company demanding more information about the accounting
irregularities reported earlier this month.

Six senior employees were suspended from the industrial services unit, where
the irregularities were discovered, and the company also announced it would
reduce its net asset value by ?25m.

The Financial Times reported that the letter, by law firm Mishcon de
Reya, contains a list of questions pertaining to when exactly the board
discovered the problems, why they were not detected earlier and how they arose.

Through his lawyers, shareholder Bob Morton also requested a copy of a report
from KPMG, who are currently conducting an inquiry into the irregularities,
independent of the company’s auditors Deloitte.

Morton, a former chairman of MacLellan – a rival services company purchased
by Interserve in July for ?118m – was also a large shareholder in MacLellan, and
has seen his shares in the company drop sharply after the announcement of the
irregularities, which appear to go back to 2001.

Morton told the paper he wanted to know ‘who is responsible’.

Interserve has postponed it’s results announcements, expected late September.

Related Articles

PwC found negligent by US judge over Colonial Bank's $2bn fraud

Audit PwC found negligent by US judge over Colonial Bank's $2bn fraud

3w Alia Shoaib, Reporter
Deloitte South Africa investigated over Steinhoff audits

Audit Deloitte South Africa investigated over Steinhoff audits

1m Alia Shoaib, Reporter
Top 5 audit fines of 2017

Audit Top 5 audit fines of 2017

1m Alia Shoaib, Reporter
PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

1m Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

Audit The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

2m Carl Johnson, Stephensons
BDO holds off Big Four to retain top position as AIM auditor

Audit BDO holds off Big Four to retain top position as AIM auditor

2m Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

Audit FRC urged to fine Big Four firms penalties over £10m

2m Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

2m Alia Shoaib, Reporter