Raymond Doherty 13 Feb 2018 03:58pm

Troubled IQE replaces PwC with KPMG

Welsh technology company IQE has replaced its auditors a week after being accused of accounting manipulation

Last week, short seller Muddy Waters published research alleging that IQE, which supplies chips for Apple iPhones, is an “egregious accounting manipulator”, causing its share value to plummet. IQE denied the claims and said they were “without merit”

Today, IQE announced that it is bringing in KPMG to replace Big Four rival PwC, which has been its auditor since 2005.

In a statement to the London Stock Exchange, IQE said that as part of the handover process, PwC provided the company with a written statement “which confirmed there were no matters which needed to be brought to the attention of the company's members, creditors or directors”.

“This announcement is not required under the AIM rules, but in the context of the two recent broadly similar and misleading reports published by funds with a short position in IQE, the company wishes to go above and beyond the disclosure requirements as stated under the AIM Rules. The company holds itself to the highest standards of transparency, governance and integrity.”

KPMG is currently being investigated for its audit work on Carillion. The Big Four firms were today accused by MPs of “feasting” on the “carcass” of the business after receiving a combined £71.6m in fees.