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Watchdog probes North firm's auditors.

AN accountancy watchdog is investigating the UK arm of Baker Tilly over its auditing of the accounts of North East electric vehicle maker Tanfield.

The Accountancy and Actuarial Discipline Board is looking at the firm's vetting of Tanfield's 2007 and 2008 accounts.

It is investigating whether impairment provisions, or the amount of money by which stated capital is reduced by distributions and losses, announced in the Washington firm's 2008 accounts should have been included to some degree in its 2007 figures.

The AADB also said it was investigating accountants, not necessarily working at Baker Tilly, about the preparation of Tanfield's accounts. Baker Tilly issued a statement saying: We are aware of this investigation of historical issues, relating to impairment provisions in past sets of accounts, and we have supplied all the information that has been requested from us.

The investigation began after the watchdog consulted the Institute of Chartered Accountants of England and Wales (ICAEW) and ICAS.

Tanfield, which makes cherrypickers and electric vehicles, has seen its business decline in recent years and the company, once worth more than pounds 500m, saw trading fall in 2008. It took pounds 89.6m worth of impairment charges that year which helped it go from a pounds 12.4m profit in 2007 to a pounds 88.8m loss in the following year's report.

Tanfield issued a statement which said that the regulatory probe did not cover its 2009 accounts.
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Publication:The Journal (Newcastle, England)
Geographic Code:4EUUK
Date:Nov 6, 2010
Words:236
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