15 Jan 2014

Diligent says review confirms no misconduct

11:19 am on 15 January 2014

Diligent says an independent investigation of its accounts found no intentional misconduct or fraud, despite material weaknesses in its accounting systems.

The board papers software company is expecting to provide its first accounts in a year at the end of February.

Diligent also says it continues to grow, albeit growth in new clients has slowed for six successive quarters.

Craigs Investment Partners head of wealth research Mark Lister said the update reassured investors who he believed had reacted to commentary around an investigation that the audit committee engaged from outside counsel.

"The outcome of that review was that there had been no fraud or intentional misconduct," he said. "This just provides people with a bit of comfort that there hasn't been anything more sinister."