News article

Posted by John Lamb PM | on Wed, 07/09/2011 - 13:19  1238

iSoft auditor comes under legal spotlight

The firm that once audited troubled healthcare informatics iSoft’s accounts is to face a professional disciplinary hearing next month relating to misleading financial statements.

The hearing is latest in a long series of enquiries into the conduct of the software company - still a prime contractor to the NHS National Programme for Information Technology.

The struggling NPfIT supplier, which had struggled to meet delivery deadlines, was taken over by Australian firm IBA Health in 2006 and then in July this year swallowed up by its main UK NHS partner, Computer Sciences Corporation (CSC).

The Accountancy and Actuarial Discipline Board will be quizzing representatives from RSM Robson Rhodes, the firm that was the supplier's auditor between 2003 and 2005. (The firm has since become part of Grant Thornton.)

iSoft’s former financial director Ian Storey has already been fined for repeatedly providing false and misleading information to auditors.

The company’s co-founder Patrick Cryne and three other former executives are facing criminal charges which allege they conspired to make misleading statements to the market over the software group's financial performance.

CSC is currently renegotiating its contract with the NHS after probes by the Public Accounts Committee and the National Audit Office that highlighted missed deadlines for installing Lorenzo at hospital Trusts.

The review is expected to start in early October.