Tetrosyl seeks £1m in compensation from BDO over 9-month audit delay
Rochdale-based car products manufacturer Tetrosyl is seeking more than £1m in compensation from Belgian accountancy firm BDO, over claims that BDO’s “inadequate” handling of its audit damaged Tetrosyl’s relationships with its contractors and led to Tetrosyl’s directors facing criminal proceedings from Companies House.
In documents seen by The Times, Tetrosyl said BDO’s nine-month delay in filing its audit cost the car care products maker £1m, as it was unable to re-tender supply contracts due to BDO’s late filing.
Tetrosyl said it was left feeling “completely powerless” by the audit delays, as it was unable to switch to another auditor without BDO resigning from the job.
The delays saw Companies House warn Tetrosyl that it would begin criminal proceedings against its directors. Prolonged delays to Tetrosyl’s audit also damaged Tetrosyl’s reputation, harmed the firm’s relationships with suppliers, and raised its financing costs, Tetrosyl said.
After Tetrosyl was first told by BDO there would be a three-month delay in filing its audit, the Rochdale based firm warned its suppliers and insurers, only to be struck by even more delays after the three-month deadline had passed.
The additional delays further damaged Tetrosyl’s relationships with its suppliers, amid doubts as to whether the firm was telling the truth.
Short staffed
The filing claims that BDO’s service deteriorated in early 2021, after it had previously audited Tetrosyl’s accounts in 2013, as changes in personnel saw BDO request the same information from Tetrosyl multiple times, while work ground to halt when just a single member of staff was away.
According to the Times, work stopped for several works when BDO partner Julien Rye, who was overseeing the project, left on sick leave for several weeks. BDO also admitted that its Manchester audit team had prioritised other clients over Tetrosyl, The Times said.
Speaking to The Times, Tetrosyl chairman Peter Schofield said he suspected BDO had taken on too much work, which it had been unable to complete due to being short staffed.
Tetrosyl claimed that its competitors took advantage of the situation by calling into question the viability of its business.
In an email to City PM, BDO said it could not comment due to being bound by client confidentiality.