Slater & Gordon confirms ASIC probe, accounting error
Slater & Gordon has confirmed that the Australian Securities and Investments Commission will come to it with questions about its audit relationship with Pitcher Partners and admitted an accounting error has been found in its UK business.
The ASX-listed law firm said in a statement it would cooperate fully and was eager to resolve all ASIC queries as soon as possible.
The revelations followed an Australian Financial Review report flagging the regulatory inquiry, which the company initially dismissed as “incorrect and misleading”.
Monday’s statement said its auditor Pitcher Partners was notified by ASIC on Friday that it intended to raise questions with the company directly.
Slater & Gordon also revealed that in its initial review of its accounting work it found a “consolidation error” in the reporting of UK cash flows.
The company also confirmed that the UK regulator, the Financial Conduct Authority, is investigating Quindell, the UK company that Slater & Gordon paid $1.3 billion for its Professional Services Division in March. Quindell will lodge its revised accounts in the UK this week.
Slater & Gordon said its evaluation of the business was based on its assessment of the value of those assets and was undertaken with the assistance of audit firm EY.
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