Probe launched into RSM Tenon accountants and auditors

An investigation into the accounting methods of accountancy and advisory firm RSM Tenon Group has been launched by the Financial Reporting Council’s Accountancy and Actuarial Discipline Board.

The investigation will look at the conduct of “certain members” of the Institute of Chartered Accountants, as well as of PricewaterhouseCoopers as auditors of RSM Tenon, according to a statement from the AADB.

According to the FRC, the investigation will cover the preparation, approval and audit of RSM Tenon’s financial statements for the years ended 30 June 2010 and 2011, and the preparation, approval and review of financial information connected to the company’s admission to the London Stock Exchange.

It will also look into statements made surrounding the acquisition of RSM Bentley Jennison.

PricewaterhouseCoopers said in a statement: “We will be cooperating fully with the AADB investigation. We will be vigorously defending our audits and other work carried out for the RSM Tenon Group.”

A spokesperson for RSM Tenon said: “RSM Tenon Group plc notes that the Accountancy and Actuarial Discipline Board has decided to investigate the conduct of members and member firms of the Institute of Chartered Accountants in England and Wales in connection with aspects of the preparation of RSM Tenon’s financial information in respect of 2010 and 2011.

“RSM Tenon will fully co-operate with the AADB and their investigation.”

The company has seen a constantly shifting leadership beginning with the resignation of former chairman Bob Morton and former chief executive Andy Raynor.

Adrian Martin, who took over the role of chairman from Mr Morton, announced three months later that he planned to step down along with former non-executive director Michael Findlay.

Meanwhile Chris Merry, previous chief executive officer of Matrix Group, has taken up the position of chief executive officer.