Internal Audit News

Erroneous Accounting Prompts Helphire to Take on KPMG

Erroneous Accounting Prompts Helphire to Take on KPMG

A recent restructuring in motoring company Helphire Group has unveiled an accounting error of up to £25 million in its accounts, prompting the board to hire KPMG accountants to investigate the matter. Shares of the company sustained an all-time low 67 percent decline on Friday last week shortly after the discovery of the accounting error. [...]

Unexplained Withdrawal by Former Student Association Prexy Under Fire

Unexplained Withdrawal by Former Student Association Prexy Under Fire

About $1 million had been drawn off from the bank accounts of a student association in Porirua, New Zealand when its then president relinquished the post, initial investigation by police authorities showed. Members of the Whitireia Independent Students Association claimed that unexplained withdrawals from the union’s bank accounts took place for 18 months, which Deloitte [...]

Delisted Chemical Company Faces Class Action Suit

Delisted Chemical Company Faces Class Action Suit

Following allegations of accounting and operational issues raised by KPMG, chemical company ShengdaTech, Inc. has received a letter from the Listing Qualifications Department of The NASDAQ Stock Market LLC delisting the Chinese firm. Nasdaq found that ShengdaTech’s securities were no longer warranted based on several public disclosures. Meanwhile, Holzer Holzer & Fistel, LLC has filed [...]

Priest Questioned Over Gambling Spree After Deloitte’s Internal Audit

Priest Questioned Over Gambling Spree After Deloitte’s Internal Audit

A parish priest in Ottawa, Canada has decided to end his 14-year service to the Glebe church following an internal audit conducted by Deloitte LLP that revealed several controversies involving his gambling activities. The controversy was first reported by the Ottawa Citizen newspaper which disclosed more than $137,000 in cash advances reflected in the credit [...]

Overpriced Contract Services, Substandard Work in Scotland Under Investigation

Overpriced Contract Services, Substandard Work in Scotland Under Investigation

The Edinburgh Council has called in auditors from global accounting firm Deloitte to conduct an investigation into the alleged overpriced contract services and insufficient and substandard works in property repairs. The council has so far suspended eight of its staff tagged in the anomalous practices that involved millions of pounds worth of property repair contracts. [...]

‘Suspend’ Share Trading, Holdings Company Pleads

‘Suspend’ Share Trading, Holdings Company Pleads

Chinese holdings company Gaoxian Fibre Fabric has called for a suspension in its share trading following dubious bank balances in its subsidiaries as reported by auditors from Ernst & Young. Following the call to halt its share trading way back in March 2010, China Gaoxian Fibre Fabric Holdings Ltd moves to bring the downtime to [...]

Fraught with Corruption: Eastern Cape Health Department Grilled by Forensic Investigation

Fraught with Corruption: Eastern Cape Health Department Grilled by Forensic Investigation

PricewaterhouseCoopers’s forensic investigation has led to conclude that the department of health of Eastern Cape, South Africa lost more than $6.5 million (R45 million) in the last couple of years due to fraud and corruption committed by officials in top levels of the government. The forensic investigation all pointed to specific issues that have been [...]

Deloitte Audit Clears Procurement Issues in Calgary

Deloitte Audit Clears Procurement Issues in Calgary

CALGARY, Canada – Contrary to the initial report by city auditor alleging impropriety in the city hall’s procurement process, consultants from Deloitte found that there was no evidence of fraud and that city officials have handled the issues accordingly. City auditor Tracy McTaggart alleged in an audit report that the procurement process has been tarnished [...]

KPMG: Siemens Services to SA Labor Department Substandard

KPMG: Siemens Services to SA Labor Department Substandard

CAPE TOWN, South Africa – The labor department has heeded the advice of KPMG not to give extension to the contract of the German technology firm Siemens after the audit firm has found that its services have been below standard. According to KPMG, it would be less costly to come to terms with regards to [...]

Trust Fund in Papua New Guinea Not Complying with Finance Management Act, Says Deloitte

Trust Fund in Papua New Guinea Not Complying with Finance Management Act, Says Deloitte

PAPUA NEW GUINEA – The latest in the audit reports of business consultancy and accounting firm Deloitte on the Department of Environment and Conservation (DEC) disclosed several lapses in how it has managed the coffers of its Biodiversity Trust Fund and poor compliance with the rules. The audit report, which is the second in a [...]

Deloitte Bares Weaknesses in Infraco’s Internal Controls

Deloitte Bares Weaknesses in Infraco’s Internal Controls

Despite the existence of policies and implementation of guidelines for managing contract processes within Broadband Infraco, compliance with the set rules has been very poor, according to the audit report of Deloitte conducted in 2010. Infraco, a South African state-owned entity (SOE), has been created by the SA government in 2005 through the merger of [...]

Motion to Reconsider Fraud Charges Against Former Canadian Senator Filed

Motion to Reconsider Fraud Charges Against Former Canadian Senator Filed

OTTAWA, Canada – Ernst & Young’s audit for the Senate issued December 2010 has proven that Sen. Raymond Lavigne was not the only senator who found deficiencies in the rules of the upper chamber. This was the allegation of the Canadian senator’s lawyers who called on the court to reopen the fraud case that has [...]

KPMG Gives South Frontenac Clean Audit Report

KPMG Gives South Frontenac Clean Audit Report

ONTARIO, Canada – South Frontenac Council has received a clean audit report from auditors at KPMG during its regular meeting last week, owing to its tangible assets. The audit ran for more than a year covering the council’s financials in fiscal year 2009, and although it has been challenged by the change in its capital [...]

PwC’s Review Forces Aussie Oil Contractor to Cut Rights Issue Price

PwC’s Review Forces Aussie Oil Contractor to Cut Rights Issue Price

Neptune Marine Services has devalued its rights issue price to about 12,000 shareholders following the review of PricewaterhouseCoopers into its balance sheet that wrote off $99.5 million from its assets, the company said yesterday. Before this, the gas and oil contractor based in Perth, Western Australia, initially announced that it has valued the rights issue [...]

Port of Guam Receives Clean Internal Audit Report

Port of Guam Receives Clean Internal Audit Report

GUAM – The Port Authority of Guam has received a clean internal audit report from Ernst & Young LLP for its financials in fiscal year 2010 released today by the Office of Public Accountability. “The Port Authority of Guam closed fiscal year 2010 with net assets of 12% or $7.1 million primarily due to an [...]

KPMG Audit Reveals $76,000 in Losses at Singapore Red Cross

KPMG Audit Reveals $76,000 in Losses at Singapore Red Cross

SINGAPORE – An audit report disclosed by the global accounting firm KPMG has shown $76,000 in losses at Singapore Red Cross due to misappropriation of funds allegedly perpetrated by the organization’s administrative assistant from January 19, 2010 to November 30 2010. KPMG’s audit report figure fell 15 percent from the initial investigation of Singapore Red [...]

Bad Debts, Increased Operating Expenses in Guam Hospital

Bad Debts, Increased Operating Expenses in Guam Hospital

Only 24 cents for every dollar owed by Guam Memorial Hospital (GMH) patients in 2010 have been going to the coffers of GMH, with the number of uninsured patients having climbed 28 percent worsened by the 33 percent rise in operating expenses, according to an audit conducted by Deloitte which was released by Guam’s Office [...]

Tui Travel Sacks KPMG for Blowing the Whistle on Accounting Error

Tui Travel Sacks KPMG for Blowing the Whistle on Accounting Error

Following the resignation of its finance director, Tui Travel was left with no choice but to part with its accounting firm KPMG after the blow-up of an erroneous accounting report in October 2010 that forced the travel agency’s UK division to write off £117 million of its shares. Prior to the announcement of this accounting [...]

Senate Says No to Ernst & Young’s Call for Second-level Approval of Expense Report

Senate Says No to Ernst & Young’s Call for Second-level Approval of Expense Report

CANADA – Senate’s internal economy and budget committee chairman David Tkachuk rejected Ernst & Young’s recommendation to subject the senators’ expense report to a second-level of sign-off after auditors found “a lack of clear guidance and criteria clarifying what activities constitute a parliamentary function.” In 2009, senators have been using their offices’ budget for their [...]

BDO Global Revenue Up by 5%

BDO Global Revenue Up by 5%

In contrast to its reported revenue fall in UK for the year ended June 2010, BDO has managed to increase its global revenue by 5 percent, hitting $5.3bn for the financial year ended September 2010. The firm attributed its global revenue hike to the strong growth of its branches in the Asia Pacific region, particularly [...]