Guess who the auditors are? KPMG. Again. To add to a long list of failed audit clients who have gone from boom to bust very rapidly in the recent past.
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i thought the issue was something to do with their miscalculation of a corporate tax instalment payment which has nothing to do with the auditors (as the current year obviously wont have been audited yet)?
I realise its fashionable to blame auditors for everything, but it seems a bit unfair on this one !
No one goes bust for that reason
And given auditors have to review cash flows for 12 months hence they should have spotted this anyway….
So yes, they can be blamed
Might be better to wait for the facts before making a judgment. Although one might imagine too much carelessness it does necessarily mean so.
Edit ‘does not necessarily mean so’.
What warning signs can you detect in the last accounts at 30 April 2017? Carillion’s accounts were full of warning signals: but I struggle to see anything bad in Conviviality’s accounts. The working capital ratios look consistent, profitability is consistent, ROCE is consistent. The only concern is in the rate of growth and gearing but nothing looks too bad to me.
The auditors should have seen the cash flows
This is where the apparent failure was