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

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