Wiggins to replace auditor HLB Kidsons
Wiggins, the troubled property developer, is to part company with its auditor HLB Kidsons, currently under investigation for its role in producing accounts which over stated profits at the business by £35m.
Kidsons today told Accountancy Age that it would no longer audit Wiggins but would continue to provide other services.
A spokesman for the firm said: ‘We have agreed with Wiggins that we will not seek re-election as auditor but we will continue to advise them on other areas such as tax.’
Wiggins was forced to restate its accounts earlier this year turning a pre-tax profit of £25.1m into a £9.9m loss for the 12 months to March 2000. The accounts were reissued following an agreement struck with the Financial Reporting Review Panel in December 2000.
The company is now facing an FSA probe over the errors and the ICAEW has referred the case to the Accountants Joint Disciplinary Scheme to examine the Kidsons’ role.
In a Daily Telegraph report today, Wiggins chief executive Oliver Iny said the company had been ‘flirting with the big five firms’ for some time.