PracticeAuditIrregularities at aerospace company push up losses

Irregularities at aerospace company push up losses

Accounting irregularities included overstatement of assets, as well as unsupported and unrecorded transactions

Canadian aerospace company Magellan Aerospace has uncovered accounting
errors and misstatements which have pushed up its net losses to $11.3m (£5.7m).

The company’s 2007 loss was 14 cents per share compared with 11 cents per
share in 2006.

The company said it began internal investigations into the irregularities
after they were detected at one of its divisions collecting outstanding accounts
receivable, AP reported.

During the inquiry, discoveries were made on overstatement of various assets
on the balance sheet, which resulted from improper accounting, as well as
unsupported and unrecorded transactions between 2003 and 2007.

Further reading:

Magellan
Aerospace Q4 Net Loss Widens On Higher Expenses

Magellan
falls on accounting errors

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

1d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

6d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter