Investigation into Leeds United auditors over conflict of interest

THE auditors of Leeds United, Gibson Booth, are being investigated by the Institute of Chartered Accountants in England and Wales (ICAEW) over allegations of a conflict of interest.

Club chairman Andrew Umbers, who was appointed as a director to the club on January 1, is brother of Richard Umbers, a partner at Gibson Booth.

The ICAEW has confirmed that it is looking into the conflict of interest. 

Richard Umbers told Accountancy Live: “They haven’t told us – we haven’t had any formal notification of this.

“Consensus was that we would put in place measures and I would be excluded from anything to do with the audit.

“And the audit file was independently reviewed by a third party, the Mercia Group.

“I’ve kept well away from the audit and I’ve had nothing to do with it. Nor did Andrew, in all fairness. He’s kept well away from it as well internally at Leeds.”

Upon the appointment of his brother as director at the club, the firm held a discussion with the ICAEW.

He added: “On Andrew’s appointment I was made aware that Alistair had had a conversation with the institute. I wasn’t privy to that conversation and the institute won’t tell me what they said.

“I was aware Alistair had been discussing the matter with the institute in late December, and we were given approval…with all the safeguards we had put in place in the practice.

‘That phone call was well documented, so as far as we’re concerned, this is not a problem.”

A Leeds United spokesman said: “Alistair Russell, senior auditor and partner of Gibson Booth checked with the Institute of Chartered Accountants of England and Wales before Andrew Umbers was appointed as a director, and gave approval to Gibson Booth that there was no conflict in them remaining auditors of Leeds United with Andrew Umbers as director.”

Leeds United’s accounts, for the year to June 2014, were published on Tuesday and showed the club had made a pre-tax loss of £20.3m.