Accounting Irregularity Analysis & Presentation
Speedy Hire Scandal

Ericka Johnson
ACCT 310-V1WW
Gina Sturgill
June 9, 2014

Accounting Irregularity is defined as an intentional misstatements or omissions of amounts or disclosures in financial statements done to deceive financial statement users. The term is used interchangeably with fraudulent financial reporting. One of the biggest accounting scandals that has happened in the past two decades was Enron. The scandal left many people without work and it left a bad taste in people’s mouths about trusting companies and their accounting practices. Recently there has been a huge scandal across the pond in the United Kingdom with a company called Speedy. Speedy is a tool rental company that has been in business since 1977. This company specializes in providing a range of equipment for hire for the average citizen or for a business and until this scandal they have managed to maintain great business relationship and gross £350 million dollars in sales in 2012 companywide.

Since 2005 the company has been run by Steve Corcoran who was earning a top salary of £355,000 ($480,666). In 2013 after the market closed the company reported that it was in compliance with all of their financial agreements. After the company made some changes in upper management and the new boss came in for the international arm discovered the irregularities on November 12th and the head of the company (Steve Corcoran) was forced to step down on November 13th, also the financial director was suspended as well. The company originally states that they would hit profits of £20.9 million by the end of the year but after going over the books it was discovered that the company would take a hit of £3 million after their financial performance from 2012 was re-stated. In the early stages of the investigation they had no idea how bad the company