Resignation of auditors

[forlanssister 3,050]

Did they resign prior to or after March 6?

[colinstein 294]

why does that matter ?

[barca72 440]

There is something quite strange going on here.

Deloitte were re-elected as the Company's auditors at the AGM in December! The Companies Act requires auditors to provide a statement as to why they have resigned that is made available to all shareholders as to the reason within 14 days of resignation (unless the Company applies to the court to withhold this information!).

 

Auditor Resignation Under Companies Act 2006

What happens when the auditor resigns?

 

 

Auditor

Notice of Resignation

must be accompanied by -

 

Statement of Circumstances [s519] Giving the circumstances or stating there are none

 

Auditor waits 21 days and if company has not objected to the court, sends a copy to

Companies House within 7 days [s521]

 

 

 

Auditor [on resignation s522] and Company [within 14 days s523] independently send

A copy of the Statement of Circumstances with reasons for change in auditor, if there are no

Circumstances, sent to:

 

ICAEW – Institute of Chartered Accountants in England & Wales

or

 

POB – Professional Oversight Board of The Financial Reporting Council

 

for a major audit.

 

Company

Company has 14 days to send on to Companies House [s517]

 

Company has 14 days to object to court or send to shareholders and those who are entitled to receive copies of the accounts [s520]

Note - if no circumstances then do not need to send to shareholders.

 

NOTE: s519 also applies when an auditor is not re-appointed at the end of the term of office or removed from office.

For further details please refer to

http://www.icaew.com/index.cfm/route/155861/icaew_ga/Members/Practice/Audit/Auditor_cessation_statement s_Flowcharts_and_guidance_notes/pdf

 

Is it possible that Deloittes may have refused to sign off the accounts and therefore resigned within the last 2 weeks? However, according to the chairman's statement to the stock market -

Paul Murray, Interim Chairman of Rangers, commented -

"These results are historical and relate to a period before the new Board took office. I wish to draw shareholders' attention to the fact that these interim results have been reviewed by Jeffreys Henry LLP. ‎I have been informed by Deloitte, the existing auditor, that they informed the previous Board of their intention to resign following the June 2014 audit. The previous Board chose not to announce this nor did they find a replacement for Deloitte. With limited time to have these results reviewed the Board asked Jeffreys Henry to perform the exercise as Independent Reporting Accountants, not auditors. They have previously carried out work for the Club and therefore know the finance functions well. The Board will make a further announcement on this subject once we have found a replacement firm for Deloitte."

- it sounds rather like Deloitte were gone long before the last two weeks and this had not been reported according to the requirements of the Companies Act.

Even if the previous board had applied to the court to withhold this information from the shareholders you woud think that there would be an entry for legal costs.

I cannot log in to the Companies House website at the moment, so maybe someone can check if these forms, especially the s519 form has been recorded. There is certainly nothing reported on the Stock Market announcements going back to 2013, unless I missed them, about Deloitte actually resigning.

Deloitte, one would expect, would not lend themselves to any devious actions so who is telling porkies here?

[Deebear 0]

Did they resign prior to or after March 6?

 

Are things going awry ? Have we to be worried ?

 

I've been hoping you would comment on this thread, but your comment has me even more worried.

 

I was hoping that once King and the 3 bears got in that I could relax a bit.

[T-1000 174]

There is something quite strange going on here.

Deloitte were re-elected as the Company's auditors at the AGM in December! The Companies Act requires auditors to provide a statement as to why they have resigned that is made available to all shareholders as to the reason within 14 days of resignation (unless the Company applies to the court to withhold this information!).

 

Auditor Resignation Under Companies Act 2006

What happens when the auditor resigns?

 

 

Auditor

Notice of Resignation

must be accompanied by -

 

Statement of Circumstances [s519] Giving the circumstances or stating there are none

 

Auditor waits 21 days and if company has not objected to the court, sends a copy to

Companies House within 7 days [s521]

 

 

 

Auditor [on resignation s522] and Company [within 14 days s523] independently send

A copy of the Statement of Circumstances with reasons for change in auditor, if there are no

Circumstances, sent to:

 

ICAEW – Institute of Chartered Accountants in England & Wales

or

 

POB – Professional Oversight Board of The Financial Reporting Council

 

for a major audit.

 

Company

Company has 14 days to send on to Companies House [s517]

 

Company has 14 days to object to court or send to shareholders and those who are entitled to receive copies of the accounts [s520]

Note - if no circumstances then do not need to send to shareholders.

 

NOTE: s519 also applies when an auditor is not re-appointed at the end of the term of office or removed from office.

For further details please refer to

http://www.icaew.com/index.cfm/route/155861/icaew_ga/Members/Practice/Audit/Auditor_cessation_statement s_Flowcharts_and_guidance_notes/pdf

 

Is it possible that Deloittes may have refused to sign off the accounts and therefore resigned within the last 2 weeks? However, according to the chairman's statement to the stock market -

Paul Murray, Interim Chairman of Rangers, commented -

"These results are historical and relate to a period before the new Board took office. I wish to draw shareholders' attention to the fact that these interim results have been reviewed by Jeffreys Henry LLP. ‎I have been informed by Deloitte, the existing auditor, that they informed the previous Board of their intention to resign following the June 2014 audit. The previous Board chose not to announce this nor did they find a replacement for Deloitte. With limited time to have these results reviewed the Board asked Jeffreys Henry to perform the exercise as Independent Reporting Accountants, not auditors. They have previously carried out work for the Club and therefore know the finance functions well. The Board will make a further announcement on this subject once we have found a replacement firm for Deloitte."

- it sounds rather like Deloitte were gone long before the last two weeks and this had not been reported according to the requirements of the Companies Act.

Even if the previous board had applied to the court to withhold this information from the shareholders you woud think that there would be an entry for legal costs.

I cannot log in to the Companies House website at the moment, so maybe someone can check if these forms, especially the s519 form has been recorded. There is certainly nothing reported on the Stock Market announcements going back to 2013, unless I missed them, about Deloitte actually resigning.

Deloitte, one would expect, would not lend themselves to any devious actions so who is telling porkies here?

 

No statement has so far been lodged at Companies House.

 

From the wording of the statement issued by Rangers it may be that Deloittes did not actually resign but instead did not seek re-appointment. However, this would have been evident at the agm where it would be stated that were not seeking re-appointment. Were they in attendance at the agm?

 

Whatever the reasons as Barca has indicated a statement should have been lodged; so it is all a bit odd.