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March 3, 2011

Deloitte UK auditors under investigation

An investigation into the auditors of
collapsed airplane parts manufacturer Aero Inventory has been
launched by the Accountancy and Actuarial Discipline Board
(AADB).

The body, part of the Financial Reporting
Council, will look at the work conducted by Deloitte auditors and
members of the ICAEW that were employed at Aero Inventory.

The AADB said it will examine the conduct of
members and member firms in relation to the preparation, approval
and audit of the financial statements of Aero Inventory and its
subsidiary Aero Inventory (UK) for the years ended 30th June 2007
and 30th June 2008. It will also investigate the preparation,
approval and review of the interim financial statements of Aero
Inventory for the six months ended 31st December 2008.

At the time Deloitte refused to sign off the
2009 audit of Aero inventory when it could not agree the stock
valuations put forward by the management.

An investigation does not always mean that an
allegation has been made or that there is evidence of misconduct on
the part of the member or member firm involved, the AADB said in
its statement.

 “No allegations against Deloitte have
been made and there is no presumption that there are any criticisms
to be answered by us on this matter,” Deloitte said in a
statement.

The ICAEW referred the inspection to the AADB
and Deloitte said it will fully co-operate with the
investigation.

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