News July 2004 AIDB announces investigation into Mayflower

AIDB announces investigation into Mayflower

14 July 2004


At its meeting on 8 July 2004, the Accountancy Investigation and Discipline Board decided to commence an investigation into Mayflower Corporation Plc and its subsidiaries.  The matter was referred to the AIDB by the Institute of Chartered Accountants of England and Wales and the Association of Chartered Certified Accountants.  The initial scope of the investigation will be as follows :

The role and conduct of members and member firms of the ICAEW and ACCA in relation to the Mayflower Corporation Plc and its subsidiaries, whether as auditors, advisers, directors, employees or in any other capacity.

The investigation will include, in particular:

  1. the conduct of the audits of the financial statements of Mayflower Corporation Plc and its subsidiaries for the years ended 31 December 2000, 2001, 2002 and 2003 by Arthur Andersen and PricewaterhouseCoopers;

  2. the conduct of a review of the interim financial statements of the Mayflower Corporation Plc and its subsidiaries as at 30 June 2003 by PricewaterhouseCoopers; and

  3. the conduct of David Thomas Donnelly, a former Director of Mayflower Corporation Plc and Transbus International Limited.

Notes to Editors

  1. The Financial Reporting Council (FRC) is a unified, independent regulator.  Its mission is to promote confidence in corporate reporting and governance.  The FRC incorporates five subsidiary boards: the Accounting Standards Board, the Auditing Practices Board, the Financial Reporting Review Panel, the Accountancy Discipline and Investigation Board and the Professional Oversight Board for Accountancy.

  2. The AIDB is the newly established and independent, investigative and disciplinary body for accountants in the UK. The AIDB Scheme establishes the framework and sets in place the legal formalities of participation between the AIDB and the Participating Accountancy Bodies i.e. the Institute of Chartered Accountants in England and Wales, the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants and the Chartered Institute of Public Finance and Accountancy.

  3. The focus of the AIDB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the individual accountancy body of the member concerned. The normal channel of reference to the AIDB for 'public interest' cases will be the accountancy body primarily concerned.  However, the AIDB will also have the power to call in cases whether or not they have been referred to it by an accountancy body.

Document created under a former FRC operating body.