Advised a company undertaking research work in the manufacturing sector as to the failure of its accountants to recognise the acceleration of booking of income in year end accounts in order to increase the company’s performance.
It was alleged that the accountants failed to undertake their audit work correctly as they should have discovered that there was advanced and accelerated booking of work in progress to create a false balance sheet as to profitability. When the false accounting was discovered, the client company had to restate their accounts upon discovery of the discrepancy, leading to them suffering loss. Advice was provided in relation to the complaint and company’s approach to seeking resolution of the situation.
