An auditor for Davison's of Bermuda has admitted that the company's books were "a real mess''.

James Cornes was testifying during the trial of Canadian accountant Colin Cave who is accused of stealing more than $54,000 from the company between July and December, 1995.

Individual amounts ranged from $310 to $25,000, the nine-woman, three-man jury heard. The total amount allegedly stolen was $54,871.05.

Forty-nine-year-old Cave has denied 36 counts of stealing and creating false accounts during his eight-month employment with Davison's.

Cave allegedly abused his position as financial director of the two holding companies for the retail store, BVH Ltd. and Bayland Ltd., to use company funds for personal travel, loans, credit card and overseas insurance payments, and unauthorised salary advances.

Yesterday, Mr. Cornes described a series of entries in company ledgers.

Under questioning by Crown counsel Peter Eccles, Mr. Cornes admitted he thought Davison's books were "a real mess'' and said he thought it had to do with a change in the computer system.

Mr. Cornes conducted a general audit in the summer and early fall of 1995.

He conducted a specific audit beginning on December 15, 1995 regarding misappropriation.

He also admitted that if Cave operated solely in Bermuda, an entry for $200 in a ledger showing Cave and Bayland employee Barbara Flower using money from a company account in a restaurant in Baltimore, Maryland, was not an appropriate entry.

The prosecution contends irregularities in the various ledgers represent Cave's thefts and corresponding false accounting to conceal his act.

The case continues today before Puisne Judge Richard Ground.