Roger Isaacs wrote an article for Accountancy Age titled Toppled from the top – The risk of fraud. The article is about the financial implosion of Patisserie Valerie.
« In the wake of its collapse, the administrators, KPMG, revealed that the firm’s cash position had been overstated by £54 million, while its liabilities had been understated and the amount it was owed overstated to the tune of £17 million. To make matters worse there was a £23 million discrepancy in the way it had valued its assets. »
« Its former auditor Grant Thornton had given it a clean bill of health at the time, which gave investors in confidence the value of their shares. Following the administration, Grant Thornton said that it was not the role of accountants to uncover fraud. »
