FRC files complaint against former iSoft execs

FRC files complaint against former iSoft execs

Watchdog files formal complaint against former management team at iSoft, almost ten years after ‘accounting irregularities' were discovered at software supplier

ACCOUNTING WATCHDOG the FRC has filed a formal complaint against the former management team at iSoft, almost ten years after ‘accounting irregularities’ were discovered at the health sector software supplier.

The FRC has published disciplinary complaints against Timothy Whiston and John Whelan, two former iSoft finance directors, and alleged the pair “breached the fundamental principle of integrity” and fell “significantly short” of the standards expected of the ICAEW.

iSoft warned on its profits in 2006 after it unearthed accounting irregularities for its 2004 and 2005 accounts as revenues for both these years were presented in the accounts sooner than they should have been.

The disciplinary relates to the preparation, approval and audit of the financial statements of iSoft for the years ended 30 April 2004 and 2005 and alleges that the breaches occurred in relation to iSoft’s recognition of revenue and cash from a contract with the Irish South Eastern Health Board during 2003 – 2004.

The pair could face a significant fine, a written reprimand or exclusion from the ICAEW if the disciplinary tribunal the finds against them.

The FRC has already issued fines against iSoft’s former auditor RSM Robson Rhodes, a firm since taken over by Grant Thornton, and excluded iSoft’s former financial controller from the institute.

Whiston and Whelan were both cleared along with a third man, Steve Graham, of criminal wrongdoing after a fraud trial into iSOFT collapsed in 2013.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource