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12 May 2014 12:55pm

FRC launches Computer 2000 investigation

The Financial Reporting Council (FRC) has launched an investigation under the Accountancy Scheme into the preparation and approval of the financial information of Computer 2000 Distribution Limited (C2000) related to the years ended 31 January 2009 to 31 January 2013 inclusive

The decision follows the conclusion of an independent investigation into C2000’s parent company, Tech Data’s accounting practices across Europe, in February 2014.

Tech Data launched an internal investigation last year after restating its accounts for the fiscal years’ 2011, 2012 and 2013, to correct “accounting improprieties” relating to its UK business.

"The audit committee, its independent counsel and forensic accountants performed a thorough investigation of the company's accounting practices," Charles Adair, chairman of Tech Data's audit committee, said in releasing results of an internal probe in February. "The board of directors is confident the company is addressing the problems that led to the restatement and has complete confidence in Tech Data's executive management team."

The company shed $27m off its previously reported net profits, following the probe.

C2000 was taken over by Tech Data in 1998 to become the UK arm of the worldwide distribution company. In October 2013, C2000 rebranded to Tech Data.

Raymond Doherty

 

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