ACCA is facing its second presidential crisis in a year, only two weeks before an extraordinary meeting, called to discuss corporate governance writs Lucinda Kemeny.

The crisis follows revelations that Moyra Kedslie has been the subject of an inquiry by the Higher Education Funding Council over her time as head of Hull University's school of accounting, business and finance.

Kedslie, ACCA deputy-president, resigned from her post at the university at the end of September last years has become a central figure in a follow-up probe led by HEFCE chief Brian Fender.

In documents sent to education secretary David Blunkett, Fender has revealed the school suffered a loss of £500,000.

The inquiry report says that 'the school had been driven by income generation rather than academic mission'.

Although the report states 'there was no suggestion of corruption', it will inevitably raise questions about the suitability of Kedslie to success John Brockwell.

An ACCA spokesman said: 'There has been an investigation at the university and Moyra was completely exonerated. She addressed council on this subject and council fully supports her. Her husband has written to the chief executive and explained what happened'.

ACCA removed president-elect Ray Gardiner from the post last May.