AN ACCOUNTANCY WATCHDOG has fined RSM Robson Rhodes and partner Glyn Williams £240,000 over the audit of IT business iSoft.
Both parties accepted their “conduct” had fallen short of auditing standards at a tribunal held by the Accountancy & Actuarial Discipline Board.
Robson Rhodes was ordered to pay a fine of £225,000 and make a contribution of £750,000 of costs to the AADB. Williams will be reprimanded and pay a fine of £15,000.
The AADB launched an investigation against the firm and its partner Williams for their audit of NHS software business iSoft Group plc and its principal subsidiary iSoft plc.
The complaints relate to the audits of accounts for both organisations for the years ended 30 April 2003, 2004 and 2005. They alleged misconduct relating to: inappropriate recognition of revenue on long-term contracts; iSOFT’s failure to recognise on its balance sheet receivable balances and associated liabilities in relation to income streams from contracts which had been “sold” to third-party funding providers; and the audit of goodwill balances.
Robson Rhodes and Williams accepted their conduct had fallen short of the standards.
The firm was acquired by Grant Thornton in July 2007 with Williams joining as a partner.
Complaints against the firm and partner are in no way related to the iSoft Group an Australian-registered company.
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