Hamworthy fires divisional FD after finding accounting errors
Inventory overstatement of £4.6m discovered at oil and gas services company by E&Y
Oil and gas services company
Hamworthy has fired the finance director
of its inert gas division following the discovery of accounting errors related
to inventory value.
An overstatement in inventories and related balance sheet accounts of £4.6m
was unearthed following an internal investigation by Big Four firm
Ernst & Young with the accounts to 31
March this year needing a readjustment of around £1m. the rest of the figure
relates to financial years 2005 to 2007.
The company, which provides specialist equipment and services to offshore and
onshore oil and gas markets, said that the error was an isolated incident, the
FD of the division had been ‘relieved of his duties’ and the board has taken
‘immediate action to improve processes, strengthen internal controls and
management within the inert gas systems business to prevent any recurrence’.
An acting finance director for the division has been appointed while a
permanent replacement is being recruited.
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