Ex iSOFT auditors to face accounting panel

THE former auditors of iSOFT, the one-time high-flying healthcare software specialist that hit major accounting problems in 2006, are to face a hearing at the Accountancy and Actuarial Discipline Board.

The audit firm and partner, RSM Robson Rhodes and Glyn Williams, will appear at the AADB in October. 

Founded in Manchester in the early 1990s by a group of KPMG Consulting partners, iSOFT was spun out with private equity backing before listing on the stock market.

After a meteoric rise which saw the market capitalisation soar, the bubble burst after a number of profit warnings, which then triggered questions over the way the company was accounting for revenues from NHS contracts.

Since the original investigation began in 2006 Robson Rhodes has merged with Grant Thornton. Glyn Williams is an audit partner based in the firm’s Manchester office.

The AADB complaint alleges “acts of misconduct” in relation to “inappropriate recognition of revenue on long-term contracts”.

Action has already been taken against one former iSOFT official, with the former financial controller, Ian Storey, being banned from acting as an accountant for eight years.

The Financial Services Authority has also brought criminal charges against four former iSOFT directors including founder Patrick Cryne and former chief executive Tim Whiston.

iSOFT, which in the aftermath of ifs financial troubles closed its multi-million pound HQ next to Manchester Airport. In 2007 it was bought by Australian firm IBA Health and this year it became part of US company CSC.