Weeks after PwC was recruited to investigate accounting irregularities, Phoenix IT hires it as auditor
PHOENIX IT has swapped its auditor just weeks after the discovery of accounting irregularities.
The technology business has announced PwC will succeed Deloitte as auditors. Deloitte stepped down after management decided to appoint another firm.
In September, Phoenix IT revealed it had found accounting errors and mis-statements, although it claims these were limited to its subsidiary Servco.
It hired PwC, as well as legal firm Nabarro, to conduct an independent forensic investigation, but no timeframe has been given as to when this will be completed.
A statement at the time said: “The information currently available suggests that certain control processes within the finance function at Servo Limited’s Birstall site in Leeds have been repeatedly and deliberately circumvented.”
The company estimates the cost of assessing the mis-statement could lower assets by up to £14m on a post-tax basis.
Phoenix IT also announced its CEO David Courtley is stepping down from the business.
“The resignation is not related to ongoing accounting investigation as previously announced, which is as much concern to David as it is to remainder of the board,” said a statement.
Other board changes include CFO Jane Aikman taking on the additional responsibilities of a chief operating officer – a new role for the business.
She joined the company in August, having previously worked as CFO at renewable energy business Infinis. Prior to that, she was FD at developers Wilson Bowden.