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.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

7d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

2w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter