PracticeConsultingE&Y ‘uncertainty’ over Jarvis accounts

E&Y 'uncertainty' over Jarvis accounts

Ernst & Young has raised a 'fundamental uncertainty' in the annual accounts of Jarvis, the rail maintenance group that last month lost a High Court battle with former auditor PricewaterhouseCoopers.

The E&Y audit report on the 2000 accounts raised doubts over the £15m figure the group has claimed on its PFI contracts accounted under turnover and debtors.

The auditors’ opinion will come as a further blow to Jarvis, which was last month ordered by Justice Lightman to pay PwC undisclosed indemnity costs. ‘There is uncertainty as to the amounts at which these claims will be settled,’ E&Y’s audit report states.

‘Depending upon the outcome of negotiations with the customers, there could be a material effect on the results and financial position disclosed in the accounts.’ Jarvis FD Henry Lafferty pointed out the audit opinion was not qualified.

E&Y took up the Jarvis audit in March after PwC walked out after a long-running dispute over the cost of auditing PFI schemes.

Jarvis brought the case against PwC after taking issue with a section 394 Companies House notice that explained its resignation over audit costs that were £449,000 above its £698,000 fee. PwC and E&Y declined to comment

Jarvis fights PwC

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer