KPMG to investigate accounting irregularities at Versailles
KPMG, which announces its UK annual results today, has been called in to investigate embattled trade finance group Versailles, and will also replace Surrey firm Nunn Hayward as auditor.
It is believed the move follows pressure from the company’s bankers, National Westminster and Royal Bank of Scotland.
Trading in Versailles shares was suspended ten days ago after the discovery of accounting irregularities.
It has also been discovered that high-profile Versailles chief executive Carl Cushnie sold £29m of his stock in the company without revealing ongoing inquiries into Versailles by the Department of Trade and Industry.
KPMG is the fourth firm of accountants to enter the saga.
The company’s shares were suspended from trading just hours after Baker Tilly submitted a draft report into apparent breaches of accounting rules governing off-balance-sheet financing – FRS5 – and other irregularities.
The report was commissioned by Versailles little more than a fortnight after Levy Gee submitted a separate report that highlighted issues over compliance with FRS5.
Inquiry into Versailles to check whether accounting systems counted sales twice