UK accounting watchdog launches C2000 probe

ACCOUNTING WATCHDOG the Financial Report Council (FRC) has launched an investigation “in connection with” Computer 2000, but has declined to divulge details of the case, sister titele CRN reports.

In a clipped statement issued today, the FRC said its decision to undertake the probe follows on from parent Tech Data’s announcement on 5 February that it had completed an independent investigation into its accounting practices across Europe.

The FRC’s investigation relates to the “preparation and approval” of the financial information of C2000 – which has since been rebranded as Tech Data – between its fiscal 2009 and 2013, it added.

An FRC representative was unable to say exactly who or what is the subject of the investigation, be it for instance the company as a whole, certain of its current or former employees, or an external party.

“To ensure it is a full and fair investigation, the amount of information we can put in the public domain is limited,” they explained.

“I can’t say how long the investigation will take. We aim to do it swiftly, but it is very important we get the right outcome.”

If the FRC concludes there is a case to be answered, it will be referred to an independent tribunal that will probably take place in open court, at which point more details of the charges would be announced. This could end in a range of sanctions for the firm or individuals involved, including a fine, the representative explained.

The probe comes more than a year after Tech Data first announced it had uncovered “accounting improprieties” relating to its UK business, leading it to wipe $25m (£15m) off its previously reported net profits

The FRC, whose job it is to “promote high standards of corporate governance“, also last year launched a probe into the accounts of UK software vendor Autonomy in the run-up to its acquisition by HP .

Tech Data was unable to comment.