Computer retail companies will be the target of a campaign of inspections launched by the Australian Securities and Investments Commission (ASIC).
Focusing on South Australia based companies, the inspections will ascertain whether companies are complying with corporations law and keeping accurate financial records. The investigations will also bring to light any evidence of insolvency.
ASIC's South Australian regional commissioner, Karen Axford, says the computer retail industry was selected due a high level of concern raised by consumers dealing with that industry.
"Information received indicates margins are very tight we want to make sure that is not leading to solvency problems and consequently problems with after-sales service," Ms Axford said.
"Company directors [must be made] aware of their personal liability if they continue to trade when their company is insolvent," she said.
ASIC has consulted the industry association, Computer Industry Association of South Australia, when planning this campaign.
Companies under investigation will be advised in writing.