Quality and accurate management information is crucial to every business regardless of its size, and this example demonstrates the seriousness of basing business decisions on flawed data and information.

Support services group Mouchel has gone into meltdown after an accounting error caused an £8.6m blow to its profits, resulting in its shares plummeting. On the discovery of an error made by a client’s actuaries, and an over-optimistic expectation of contract settlements, chief executive Richard Cuthbert tendered his resignation on 6 October. The company share price then dropped by a third, leaving its equity value at just £19.4m by the end of last week.

Read the full sorry tale.

www.accountingweb.co.uk/article/accounting-error-leads-mouchel-meltdown/519682