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September 17, 2012

RSM Tenon reprimanded for auditing failures

The ICAEW Investigation Committee has
reprimanded RSM Tenon’s audit practice for failing to carry
out an audit in accordance with international accounting
standards.

In the order, which included a £15,000 fine
and costs of £11,011, RSM Tenon agreed that it had breached the
International Standards on Auditing (UK & Ireland) 500, Audit
evidence.

The company issued an unqualified audit report
on an unnamed company’s statements for 2008, by failing to obtain
sufficient evidence on which to base its audit opinion in respect
of; going concern, loans and amounts owed by group undertakings,
Turkish investment properties, and a loan to an undisclosed
company.

The firm responded in a statement, saying the
firm regrets the circumstances of this case, which is the
first such reprimand ever received by the company’s audit
practice.

“Prior to the case coming before the
Investigation committee, RSM Tenon had changed its audit processes
and increased training with respect to ‘going concern’,” the
mid-tier firm said.

The judgment comes in a difficult year for RSM
Tenon, with profits down 9.3% in February, which lead to changes to
the firm’s executive team, redundancies and business line
restructuring.

 

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