Former iSOFT auditor fined by watchdog
THE former auditor of health sector software company iSOFT has been fined for falling short “of the standards reasonably to be expected” after a disciplinary hearing.
Professional watchdog, the Accountancy & Actuarial Discipline Board took action against RSM Robson Rhodes as a firm, and audit partner Glyn Williams in respect of the auditing of the one-time high flying Manchester company.
At the hearing Robson Rhodes and Mr Williams – now a partner with Grant Thornton in Manchester – accepted that their conduct had, “in relation to the audits of the accounts of iSoft Group plc for the years ended 30th April 2003, 2004 and 2005 fallen short of the standards reasonably to be expected” in three areas – revenue recognition; funded contract receivables and goodwill.
The AADB tribunal ordered that Robson Rhodes, which was acquired by Grant Thornton in 2007, pay a fine of £225,000 and make a contribution of £750,000 towards its costs.
It ordered that Glyn Williams be reprimanded and pay a fine of £15,000.
The AADB said it would not be publishing the full details of the tribunal’s finding as a result of criminal proceedings against a number of former iSOFT directors are due to begin in the next few months.
Commenting on the announcement a Robson Rhodes spokesman said: “The AADB started its investigation five years ago and it took four years for it to issue a complaint.
“Following a settlement agreement in which a number of the original criticisms were amended or dropped, Robson Rhodes has admitted some criticisms and agreed a resolution with the AADB in relation to its audits of the accounts for the years ended 30 April 2003-2005.
“Robson Rhodes will pay a fine and make a contribution towards the AADB’s costs so that this long drawn out matter can be concluded without the inevitable further delay, disruption and cost that would result from a full tribunal hearing, which could not have taken place before late 2012.”
The tribunal pointed out that its disciplinary action was not at all related to the iSoft Group an Australian-registered company, which still trades in this country.
