iSoft probe shows ‘possible accounting irregularities’

Health IT supplier, iSoft Group, announced today that an initial investigation had uncovered evidence of irregularities in the company’s accounts for the financial years 2003-4 and 2004-5.

The firm, which holds major contracts for supplying clinical software to England’s NHS National Programme for IT, said its board had "deemed it appropriate" to suspend Steve Graham, who was commercial director at the time, pending the final outcome of a more formal investigation.

A statement from the firm said that one other employee has been put on special leave of absence. It said other employees that appear to be involved have since left the group.

iSoft announced that it had commissioned the investigation by its new auditors, Deloitte, on 20 July to investigate possible accounting irregularities.

The company said today: “The conclusion of the initial investigation is that there is evidence of irregularities affecting the financial years ended 30 April 2004 and 2005. The principal effects of this would appear to have been to recognise revenues earlier than they should have been. They do not have any effect on the cash position of the [iSoft] group.”

It added: “It would clearly be inappropriate to make any further comment on this subject in the immediate future.”

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iSoft investigates possible accounts irregularities