AADB announces investigation
News types: Company Specific, Investigations
Published: 4 November 2010
The Accountancy and Actuarial Discipline Board has launched an investigation under its Accountancy Scheme into the conduct of Members and of Baker Tilly UK Audit LLP as auditors to Tanfield Group plc.
The scope of the investigation is as follows:
“The conduct of Members and Member Firms in relation to the preparation, approval and audit of the financial statements of Tanfield Group plc for the years ended 31st December 2007 and 2008.”
The investigation concerns historical issues related to past sets of accounts. The investigation is focused on the preparation and audit of the 2007 financial statements and, more specifically, on the valuation of certain assets on the balance sheet of Tanfield Group plc and whether impairment provisions processed in 2008 should have been recognised at least in part in the previous accounting period. The financial statements of Tanfield Group plc for the year ended 31st December 2009 are expressly not within the scope of this investigation.
This decision was taken following consultation with the Institute of Chartered Accountants of England and Wales (ICAEW) and with the Institute of Chartered Accountants of Scotland (ICAS).
Notes to Editors
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The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board, and the Accountancy and Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
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The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes for these professions. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute and Faculty of Actuaries.
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The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. An investigation does not always mean that an allegation has been made or that there is evidence of misconduct on the part of the Member or Member Firm involved.
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Disciplinary complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licenses.