It has notified the Fraud Squad and is suing Laitman for damages.
A spokeswoman explained that the scandal stemmed from a scheme that could have been overlooked by an auditor: ‘There was fabrication of evidence, it was very difficult to spot. I don’t know of any plans to get rid of PwC.’
She explained the inflated revenues were mostly in advertising, and were all backed false invoices.
‘Because there was concrete evidence that looked official, everything tied up and the money was coming in, nobody thought to question the figures,’ she added.
The irregularities were discovered when finance director Eddie Abrams chased up an overdue invoice. The spokeswoman said: ‘He actually discovered the irregularities. The FD is not seen as responsible.’ Abrams, who is also chief operating officer, is involved in the company’s new business plan. E-district will be looking for a new chief executive when the plan is up and running.
The company confirmed it had been contacted by a legal firm representing shareholders, but said it was not aware of any formal legal action.
PwC said it had nothing to add to its audit report.
More at: www.accountancyage.com/Business/1117962.
Cowgill Holloway and Warings Business Advisors have merged, with a range of growth plans in the North West put in place
New growth opportunities in Aberdeen, North East Scotland, are being invested in by Grant Thornton
If businesses do not take cyber security seriously in their business planning regulators may do it for them, the ICAEW has warned
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season