News November 2011 RSM Robson Rhodes LLP and Glyn Williams iSoft Group plc - Outcome of Disciplinary Hearing

RSM Robson Rhodes LLP and Glyn Williams iSoft Group plc - Outcome of Disciplinary Hearing

21 November 2011

The AADB announces the outcome of the disciplinary hearing against RSM Robson Rhodes LLP (“Robson Rhodes”) and Glyn Williams, respectively a member firm and member of the ICAEW and former auditors to iSoft Group plc.

The Executive Counsel of the AADB filed an admitted disciplinary Complaint against Robson Rhodes and Glyn Williams arising out of the investigation into their conduct in relation to events at iSoft Group plc.

In summary, Robson Rhodes and Mr Williams accepted that their conduct had, in relation to the audits of the accounts of iSoft Group plc for the years ended 30th April 2003, 2004 and 2005 fallen short of the standards reasonably to be expected of members and member firms in relation to the following matters:
  1. Revenue recognition;
  2. Funded contract receivables; and
  3. Goodwill.

The Tribunal upheld the admitted Complaint brought by the AADB and ordered that Robson Rhodes pay a fine of £225,000 and a contribution of £750,000 towards the costs of the AADB. It ordered that Mr Glyn Williams be reprimanded and pay a fine of £15,000.

The report of the Disciplinary Tribunal will not be published at present due to ongoing criminal proceedings. This decision will be reviewed in due course.

The AADB wishes to point out that the matters referred to above do not in any way relate to iSoft Group Limited, a company registered in Australia, formerly IBA Health Limited, which now trades as iSoft in the UK.

Notes to Editors
  1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.
  2. The Accountancy and Actuarial Discipline Board ("AADB") is the independent, investigative and disciplinary body for accountants and actuaries in the UK. The AADB is responsible for operating and administering independent disciplinary schemes for these professions. The Accountancy Scheme covers Members of the following accountants' professional bodies:- the Association of Chartered Certified Accountants, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, the Institute of Chartered Accountants in Ireland, the Institute of Chartered Accountants of Scotland and the Institute of Chartered Accountants in England and Wales. The Actuarial Scheme covers Members of the Institute and Faculty of Actuaries (formerly the Institute of Actuaries) and the Faculty of Actuaries (prior to its merger with the Institute of Faculty of Actuaries).
  3. The focus of the AADB is on cases which raise important issues affecting the public interest; other disciplinary cases will continue to be dealt with by the relevant professional body. The purpose of an investigation is to determine whether there is evidence of misconduct on the part of Members or Member Firms of the professional bodies. 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.
  4. Disciplinary complaints filed following an AADB investigation are heard by an independent Tribunal which will normally sit in public. If the Tribunal upholds a complaint, there is a wide range of sanctions which it can impose including an unlimited fine, exclusion from membership of a professional body covered by one of the Schemes and withdrawal of practising certificates or licenses.
Document created under a former FRC operating body.