RSM Robson Rhodes LLP and Mr Glyn Williams
News types: Company Specific, Investigations
Published: 22 November 2010
Outcome of Investigation into the Audits of iSOFT Group Plc
On 12 October 2006 the AADB commenced an investigation into the conduct of, amongst others, RSM Robson Rhodes LLP in relation to the preparation, approval and audit of the financial statements of iSOFT Group plc for the financial years ended 2003, 2004 and 2005. The scope of the investigation was subsequently widened to include the conduct of, amongst others, Glyn Williams, an audit partner at RSM Robson Rhodes.
Following the conclusion of the investigation, the Executive Counsel has filed a disciplinary Complaint with the AADB in relation to the conduct of both RSM Robson Rhodes LLP and Mr Williams.
The Complaint relates to the audits of the accounts of iSOFT Group Plc and its principal subsidiary, iSOFT plc, for the years ended 30 April 2003, 2004 and 2005. In particular, the Complaint alleges acts of misconduct in relation to (a) inappropriate recognition of revenue on long-term contracts; (b) 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 a third party funding providers, and (c) the audit of goodwill balances.
An independent tribunal will be appointed to hear the Complaint.
The AADB wishes to point out that the matters referred to above do not in any way relate to iSOFT Group Limited, a company registered in Australia, formerly known as IBA Health Limited.
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.
Document created under a former FRC operating body.