An investigation into the “disappearance” of more than £20m of equipment and Speedy has found that it was all to do with errors in its controls and accounting procedures.
The Speedy board ordered an investigation in February after a company-wide stock take, conducted in preparation for an upcoming audit, found a £20.4m shortfall in its inventory of non-itemised hire assets. [See our previous report here.]
Non-itemised hire assets are things like scaffolding towers, fencing and non-mechanical plant that does not have a unique serial identifier and is not tracked on an individual asset basis.
Following completion of the investigation the board has concluded that the issue was not the result of any systemic fraud perpetrated on the company by its staff or third parties. In fact, it resulted from problems with the company’s controls and accounting procedures for non-itemised assets over a number of years – “and in particular the reconciliation of such counts to the group’s fixed asset register,” the company said
New controls have now been put in place.
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Today has seen a major development in a case that has been dominating the headlines over the past two weeks. The administrator of a major company has announced that the recent investigation into purported financial irregularity has found no evidence of fraud.
The investigation was conducted with urgency, as the company had indicated that the possibility of fraud was high and that swift action was necessary to protect their integrity and reputation. A team of financial specialists was called in to investigate the company’s finances and accounting records.
Their swift and comprehensive review recommended no action against the company. The report submitted to the company by the investigators concluded: “There are no signs of fraud and all matters concerning the company finances appear to be in order”.
The company is relieved that the suspicions of fraud have been dispelled. This action, and the continued integrity of the company’s financial records, will help to protect their financial position and reputation going forward.
The findings of the investigation are welcomed by the company, their customers, and their shareholders. This outcome will help to ensure their status and reliability as a valuable partner going forward.
This situation serves as a reminder to all businesses that taking swift action and conducting a thorough investigation can help to preserve integrity. It is always much better to act quickly in such matters than wait. The outcome of this investigation shows that, despite initial suspicions of fraud, the company has demonstrated that their business is sound and reliable.