- Mazars identifies inadequate accounting after accounting revision
French sweet treat maker Laduree bakes more than 15,000 macarons every day and fills them with flavors like a red fruit and pomegranate-apricot ganache.
But the latest reports from the 162-year-old company’s UK operations, which have branches in Harrods, Heathrow Terminal 3 and Selfridges in Manchester, left a sour taste in the accountant’s mouth.
Mazars said it could not give them a clean bill of health due to inadequate record-keeping when Laduree reorganized its accounting software systems.
In bad taste: accountant Mazars said it could not give Laduree a clean bill of health
“We have not been able to obtain sufficient and appropriate audit evidence to express an opinion on the annual accounts,” Mazars said. No material misstatements – such as fraud – were found in the accounts, the company added in its ‘disclaimer of opinion’.
Sole director David Holder emphasized that the accounts were prepared on a going concern basis and that the Paris-based parent company would continue to support it.
The auditor’s warning came as the British company posted a £647,000 loss in 2022, after making a £180,000 profit the year before. But sales were up £8.5m from £5.17m a year earlier.
It is unusual for accountants to qualify accounts in this way.
Investors and other stakeholders rely on beancounters to audit companies’ books and provide an independent insight into the financial statements.
Their work has come under scrutiny following a number of recent audit scandals, including construction company Carillion and Patisserie Valerie.