Deloitte and ICAEW Under Investigation
By Bilal Siddiqui
The Accountancy and Actuarial Discipline Board (AADB) has started querying the members of the Institute of Chartered Accountants in England and Wales (ICAEW) and accountants from Deloitte over the audit of failed Aero Inventory PLC.
The aero group of companies called in joint administrators from KPMG on November 2009 after incurring losses that amounted to $11 billion according to KPMG partner Jim Tucker. Prior to the administration, Aero Inventory has appointed auditors from Deloitte to account for the financials of the group.
The AADB’s investigation will cover the processes of ICAEW and Deloitte in preparing, approving and auditing the financial statements of Aero Inventory PLC and its subsidiary Aero Inventory Ltd. In UK for the financial years ended June 30, 2007 and June 30, 2008, respectively.
According to the AADB, the investigation came after referring to the ICAEW.
The probe aims to dig up evidence of misconduct on the part of ICAEW and Deloitte, but does not mean there have been allegations raised over questionable audits, the AADB said.
If the investigation finds that Deloitte indeed committed lapses with its role as auditor of the failed aero group, an independent Tribunal will hear complaints from the public, the AADB assured.
In case of confirmed misconduct, the Tribunal will impose disciplinary actions against concerned auditors of Deloitte, including no end fines, removal as member of a professional body and withdrawal of licenses to practice their profession.