Sanctuary coughs up over £1m for auditors
Struggling music group Sanctuary paid over £1m to auditors in 2005
The accounting problems at music company Sanctuary Group cost it £1.2m last
year as the troubled business coughed up for a range of audit and non-audit
services.
Sanctuary, which reported a five-fold increase in pre-tax losses for the year
ended 30 September 2005 from £26.7m to £143m, paid principal auditors Baker
Tilly, which qualified its accounts, £565,000.
The group released a further £233,000 to ‘other auditors’ and non-audit
services performed by Baker Tilly, it revealed in its annual report
On top of that, the group paid out £326,000 for taxation advice, other
assurance services and acquisition advice.
Even though Sanctuary is only a small cap group, the £1.2m it paid in audit
fees is close to the sums paid by much larger FTSE250 groups, which pay an
average of £1.3m to their auditors.
For more on Sanctuary’s plans to replace auditors Baker Tilly see
www.accountancyage.com/2150410