PracticeAuditDefiant Diagonal sticks with Deloitte

Defiant Diagonal sticks with Deloitte

IT group Diagonal has dismissed calls to change its auditors after analysts voiced concerns of a possible conflict of interest.

Finance director Steve Fleming joined Diagonal in December last year from Deloitte & Touche, which has audited the company for 10 years.

Analysts voiced concern about the perceived close ties which may bind auditors who leave to join client companies, and stressed the need to demonstrate rigour in ensuring auditor independence.

Chief executive Graham Creswick told the FT: ‘Why should I be worrying about that? We are perfectly satisfied that Mr Fleming is totally distanced from Deloitte & Touche. I consider him a good accountant.’Auditor independence, including audit firm rotation, more frequent rotation of partners and the supply of non-audit services to audit clients, forms a major part of the government’s current review of audit and accounting post Enron and WorldCom.

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