London firm Chapman Davis faces fines and costs of more than £18,000 and reprimanded for issuing an unqualified audit on accounts that were in breach of the Companies Act.
A disciplinary brought by the ICAEW fined the firm £10,000 and charged costs of £8,855 after hearing a complaint about the firm’s work on the audit of an unnamed public company.
A statement from the institute said: “On 29 September 2006 Chapman Davis LLP issued an unqualified audit report in respect of the financial statements of ‘A’ plc for the year ended 30 June 2006 when, in breach of Audit Regulation 3.07, the 2005 comparative results, restated under International Financial Reporting Standards, and the 2006 results had not been prepared in accordance with the Companies Act 1985.”
The statement went on to detail the failings in the company’s accounts including a failure to account properly for two acquisitions, gains made on associates and gains made from foreign exchange. The company also failed to account for its cash flow properly.
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