Former iSoft Directors face criminal charges

News Article - 18 January 2010
Category: Regulatory

Four former directors at IT consultancy firm iSoft are due to face criminal charges brought by the Financial Services Authority. The ex-directors will be charged with conspiracy to make misleading statements, and are scheduled to appear before Westminster Magistrates Court on January 29th. iSoft - which specialises in IT projects for the NHS - was once owned by KPMG, one of the 'Big Four' auditors.

The fraud is the latest in a string of cases that have hit the business world recently. On January 5th, the former president of the Association of Chartered Certified Accountants pled guilty to theft, after it was discovered he illegally took £20,000 from his family. A day later, accountant Joanne Kent admitted theft of £500,000 to fund a £50,000 wedding, along with cars and properties.

Corporate fraud has been on the increase in recent years, and many commentators feel the recession is driving people to take desperate measures to increase their spending power and pay off debts. Research by KPMG revealed that in July of last year reports of corporate fraud were higher than they'd been since they starting studying the phenomenon 21 years ago.

Companies of all sizes should maintain maximum financial visibility to help reduce the risk of fraud eroding reputation, profit and cash. Small businesses in particular may be unable to cope with the fallout of fraud and the possibility of scandal.  Dedicated business auditing software can offer comprehensive visibility on each financial transaction, and can break down costs by individual or department. This allows full financial histories to be kept open. In the event of scandal being discovered, auditors can quickly and easily track down the origin, helping to reduce the damage to profitability.

Access can further advise businesses on how to use business software to facilitate a transparent and comprehensive audit trail. Please call us on 0845 335 3300.

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