Category: Accounting software

A series of auditing errors and irregularities have been uncovered at a spread betting firm, which might have avoided its current crisis had it used accounting software.

WorldSpreads, which operates web and telephone trading services, is said to owe its customers £29.7 million, but it only has about £16.6 million of funds. It has now been placed into administration.

The £13 million black hole was discovered in its accounts in recent days and has been put down to accounting irregularities.

But the betting company is not the only organisation to have suffered from auditing errors this month. The Sydney Morning Herald recently reported that the auditor-general said there were 1,256 mistakes made by the New South Wales public service departments in its financial figures for last year.

As a result of the latest error, WorldSpreads customers could lose significant sums of money, although the possibility of the Financial Services Compensation Scheme repaying some people remains open.

Posted by Jamie Rees