Forensic Accounting Services for Insolvency Investigation under Company Directors Disqualification Act 1986

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The Insolvency Service awarded a contract to BDO LLP for forensic accounting services related to a group of insolvent companies being investigated under the Company Directors Disqualification Act 1986.

The scope included examining and analysing numerous bank accounts across UK and overseas entities (including the United Arab Emirates and Isle of Man), following money trails, analysing complex group banking facilities and security arrangements such as a cash pooling arrangement via a revolving credit facility and a Composite Accounting System, and reviewing a bespoke electronic accounting software package containing approximately 1.6TB of data.

The work also involved analysing management accounting information, budgets, forecasts, and banking data to determine the financial position of the group and individual operating entities at specific points in time, assessing the contemporaneous availability of management accounting information using metadata, evaluating the impact of specific transactions on solvency under Section 123 of the Insolvency Act 1986, and analysing changes in group secured debt provision and distributions to assess impact on unsecured creditors.

BDO LLP was required to produce an expert report with appropriate graphics explaining the financial position.

The contract value was AUD 350,000.