Mayflower FD faces tribunal
Former FD faces tribunal after AIDB investigation into bus manufacturer's accounts
The former auditor and finance director of collapsed bus manufacturer
Mayflower will face a tribunal following the first complaints laid against
accountants by the Financial Reporting Council’s disciplinary panel.
Big Four firm PricewaterhouseCoopers and former FD David Donnelly had
complaints laid against them yesterday by the Accountancy Investigation and
Discipline Board following investigations that lasted over a year. The AIDB
decided not to pursue its investigation into another former auditor, Arthur
Andersen.
The complaint against PwC relates to the audit of the 2002 accounts of
Mayflower and subsidiary Transbus, in particular to amounts held on behalf of a
bank under an invoice discounting facility at Transbus and disclosures relating
to Mayflower’s ability to continue as a going concern beyond the end of 2003.
Donnelly faces a similar charge over the company’s ability to continue as a
going concern alongside the failure to disclose the discovery of accounting
irregularities at a subsidiary.
Another investigation into former Transbus employee Ian Shelton has yet to be
concluded.
A PwC spokeswoman said the complaints were ‘misconceived. We have examined
the conduct of the relevant audits carefully and we are very confident they were
planned and conducted with due skill and care.’