Ross among three managers axed by RSM over accounting error
Robert Ross: steps down
A former Scotland managing partner at accountancy firm RSM is among three senior figures who have stepped down from the management team over an error in its accounts.
Robert Ross was promoted to chief operating officer in April 2018. The others are chief executive David Gwilliam and chief finance officer Nigel Tristem. All three remain partners.
The error is a setback for RSM whose success in recently securing the audit for FTSE 250 company Sports Direct (now Frasers Group) was seen as a breakthrough for challenger firms.
Accounts for the year to 31 March showed RSM UK made errors in its provisions for professional liability claims in 2018 and in earlier years. RSM mis-stated its profits by £6m in 2018 and by £3.8m a year earlier.
Managing partner Jez Filley has been appointed as acting chief executive, Andrew Westbrook as acting chief finance officer and Jill Jones as acting chief operating officer.
Filley and Jones were appointed as directors of the firm in July, the accounts showed.
According to The Sunday Times, RSM reported the errors to audit regulator the Financial Reporting Council in advance of filing its accounts last month.
An RSM spokesperson said: “By way of response to these issues, the board made appropriate management changes.
“RSM remains in very strong financial health, well placed to capitalise on all the opportunities available to it in the market, and to grow on its success of recent years.”
Revenue for RSM UK Holdings in the year to 31 March 2019 grew 6.7% to £335m, while profit before tax was £9m, compared to a loss of £113,000 the previous year.