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Adecco hit with £67m audit bill

Troubled recruitment firm Adecco said yesterday that, following the completion of audit work for 2003, last year's results will not have to be restated. The company now faces a £67m bill from its auditors Ernst & Young following the affair

Paul Grant, Accountancy Age 02 Jun 2004

Link: E&Y refuses to sign off Adecco accounts

Adecco's results were published yesterday after twice being delayed due to the discovery of accounting irregularities and a black hole of £30m in the company's North American operations.

The reported 'material weaknesses in internal controls' sent the company's share price tumbling and cost two senior executives, including former chief financial officer Felix Weber, their jobs.

On the frontline: Jim Fredholm, Adecco CFO

The company said that E&Y will now produce an unqualified audit report on the 2003 accounts, but the work has cost them €100m. Only €6m will be charged to the 2003 accounts, with the rest being absorbed into the current year's figures.

See also:

Severe damage for Adecco from accounting troubles

Analysts have moved to make it clear that accounting problems can seriously damage your corporate health by reporting that Adecco's business reputation may have sustained 'irreparable damage' as a result of the recent furore surrounding the company's annual audit. 19 Jan 2004

All Audit

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