iSoft accounts to face FSA scrutiny

News Article - 24 August 2006
Category: Business

Troubled software firm iSoft is to have its accounts investigated by the UK's financial services watchdog.

The announcement of the Financial Services Authority's (FSA) involvement follows the firm's admission that it had found "accounting irregularities" over two years.

FSA officials will now scrutinise accounts to decide whether or not the firm misled investors over how much it had earned.

A provisional inquiry held earlier this month by auditors from Deloitte found that there was evidence of irregularities concerning the company's annual accounts for 2004 to 2005.

Revenues also appeared to have been stated earlier than they should have been.

"The findings of the initial investigation were passed by the group to the FSA.," iSoft said in a statement.

"The group has now received notification from the FSA that they will be undertaking a formal investigation into the possible accounting irregularities."

The firm, which has not yet published its annual results, must do so before the deadline on Monday.

Late publication of the results were attributed to changes in accounting rules and identified errors.

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