Watchdog to investigate Connaught accounts

The disciplinary body for accountants has launched an inquiry into the events surrounding the collapse of contractor Connaught, which went into administration in September.

The Accountancy and Actuarial Discipline Board (AADB) said it had launched an investigation under its accountancy scheme into Connaught’s auditors, PwC, and other unspecified accountants, in “connection with events leading up to Connaught plc being placed into administration”.

It said the investigation will look at the “preparation, approval and audit of the financial statements of Connaught plc and subsidiaries for the year ended 31 August 2009 and the preparation and approval of the interim financial statements for the six months ended 28 February 2010”.

Connaught’s collapse came amid widespread allegations of aggressive accounting at the firm, which saw its book profits from contracts earlier than rivals, and spread the costs of mobilisation for contracts over a longer period.

PwC said in a statement that it would co-operate with the AADB but made no further comment.

The AADB is the independent investigative and disciplinary body for accountants and actuaries in the UK, responsible for operating and administering independent disciplinary schemes for these professions.

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