The Washington Post reports this morning that Ahold has told federal investigators that its auditor, Deloitte Touche Tohmatsu, no longer stands behind its audits of the company for 2000 and 2001.
Previously, it was believed that the “accounting irregularities” admitted by the company were for 2001 and 2002, but this new admission suggests that they may go back earlier. These irregularities, the company has acknowledged, led to a $500 million overstatement of earnings.
The Post also reports this morning that investigators are focusing on two different groups at US Foodservice, the Ahold division that is a prime focus of regulatory attention at the moment. These groups, according to the Post, are “staffers who may have been directly involved in prepayment deals that led to the restatement, as well as top executives who should have known about the problems.”
Previously, it was believed that the “accounting irregularities” admitted by the company were for 2001 and 2002, but this new admission suggests that they may go back earlier. These irregularities, the company has acknowledged, led to a $500 million overstatement of earnings.
The Post also reports this morning that investigators are focusing on two different groups at US Foodservice, the Ahold division that is a prime focus of regulatory attention at the moment. These groups, according to the Post, are “staffers who may have been directly involved in prepayment deals that led to the restatement, as well as top executives who should have known about the problems.”
- KC's View:
- If experience has taught us one thing about these scenarios, it is that there are always more skeletons in the closet than you expect, not fewer.
