BusinessCompany NewsKPMG forewarned XL board of accounting woes

KPMG forewarned XL board of accounting woes

KPMG resigned as auditor of XL, forewarning its board it had ignored ‘potential accounting irregularities

KPMG resigned in 2006 as
auditor of the collapsed travel company
XL Leisure, after forewarning
its board it had ignored ‘potential accounting irregularities’and was replaced
by and was replaced by BDO Stoy
Hayward
.

The Sunday Times reports KMPG said in a strongly worded resignation
letter the company had ‘not satisfactorily addressed the concerns we had raised
about other arrangements and potential accounting irregularities in the
financial statements’.

KPMG resigned after staff at XL held up the payment of invoices to airline
catering company Alpha Airports. The delay inflated XL’s figures leading up to
the listing of its then parent company Avion on the Icelandic stock exchange.

The discovery triggered the departures of Alpha’s chairman, chief executive
and finance director, as well as the departure of Steve Tomlinson, XL chief
operating officer, and Paul Robinson, chief financial officer.

Further reading:

XL grounded after funding dries up

Read
The Sunday Times story

Related Articles

M&S business rate liabilities based on £570m rateable value

Company News M&S business rate liabilities based on £570m rateable value

4m Emma Smith, Managing Editor
BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

8m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

1y Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

1y Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

1y Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

1y Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

1y Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

1y Emma Smith, Managing Editor