BDO cleared of misconduct in XL collapse

Mid tier accounting firm BDO has been cleared of wrong doing in its audit of
troubled UK holiday provider XL Leisure Group.

The Accountancy and Actuarial Discipline Board (AADB) did not identify any
acts of misconduct in BDO’s audit of the holiday maker which went into
administration in September 2008.

The company’s collapse left a reported 85,000 holidaymakers stranded overseas
and a further 240,000 customers without holidays.

BDO signed an unqualified audit opinion on May 23, 2008. Less than four
months later, administrators were appointed.

The AADB said it obtained and reviewed company documents from XL’s
administrators as well as from BDO. It also interviewed staff and obtained
information from XL’s former finance director, but in the end found no wrong

The investigation is now closed.

Read the full AADB statement:
Leisure Group Plc – Outcome of investigation

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