PracticeAuditCadbury auditor steps down ‘by mutual agreement’

Cadbury auditor steps down 'by mutual agreement'

Deloitte division to relinquish audit responsibilities at Nigerian subsidiary as the confectionery giant seeks to draw a line under its accounting issues after a £15m goodwill write-down

Cadbury Nigeria’s
auditor
Akintola
Williams Deloitte
 is stepping down from the role after 40 years in the wake
of the accounting issues that have plagued the subsidiary.

After conducting an imapirment review at the beleagured Nigerian arm Cadbury
stated in its year-end results that the scandal had forced the company to issue
a further £15m goodwill write-down. This followed a £23m exceptional charge in
the wake of overstatements for ‘current and prior years.’

Cadbury said: ‘After more than 40 years of service, Akintola Williams
Deloitte has resigned from its appointment as auditors to Cadbury Nigeria  by
mutual agreement, effective immediately.

‘Following the recent disclosure of overstatement in CN’s financial position
and subsequent need for restatement, we mutually believe that it would be in the
interests of shareholders and in the spirit of the highest standards of
corporate governance for AWD to stand down.’

Cadbury Nigeria were careful to rule out any suggestion that the Deloitte
division was involved in the deception that led to the overstatements:

‘While, thus far, there has been no suggestion of complicity by AWD in the
overstatements, AWD accepts that best practice in corporate governance requires
that Cadbury Nigeria commences its rebirth on a completely fresh slate.’

Cadbury added:’A new auditor will be appointed by Cadbury Nigeria as soon as
practicable.’

Further reading:

Cadbury sweats over Nigerian meltdown 

PBR 06: Brown delivers Cadbury ‘insult’ on
CFCs
 

Cadburys appoint independent auditor for
African probe

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