Healthcare agency Healthcare Locums (HCL) has announced that the Accounting and Actuarial Disciplinary Board (AADB) has started an investigation into the conduct of auditors between early 2008 and the end of June 2010.

HCL notes that no current board members are implicated into the investigation, which a statement from the company says will look into:

• Preparation, approval and audit of the financial statements of HCL and its subsidiaries for the years ended 31 December 2008 and 2009;
• Preparation and approval of the interim financial statements of HCL and subsidiaries for the six months ended 30 June 2010;
• Operation by HCL and its subsidiaries of the discounting facility with Barclays Bank during 2010; and
• Professional conduct of certain ICAEW and ICAS members in relation to potential historic compliance issues by HCL and subsidiaries with the NHS terms and conditions as set out in the Framework Agreements up until 30 June 2010.

Speaking to Recruiter for an article published on recruiter.co.uk 22 August, the company’s chairman Peter Sullivanrefused to rule out bringing the police in over the irregularities.