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

PwC replaces EY as Domino's auditor

Audit PwC replaces EY as Domino's auditor

2d Alia Shoaib, Reporter
The ‘uncomfortable truth’ behind FRC’s Big Four fines recommendations

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

1w 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

1w Alia Shoaib, Reporter
FRC urged to fine Big Four firms penalties over £10m

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

3w Alia Shoaib, Reporter
EY to audit Standard Chartered bank

Audit EY to audit Standard Chartered bank

1m Alia Shoaib, Reporter
KPMG replaces PwC as Croda auditor

Accounting Firms KPMG replaces PwC as Croda auditor

2m Emma Smith, Managing Editor
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
Top 50+50: Firms post significant growth in new tax and audit rankings

Audit Top 50+50: Firms post significant growth in new tax and audit rankings

2m Emma Smith, Managing Editor