Qwest reveals $1bn accounting error
Qwest Communications yesterday unveiled $1bn (£600m) hole in its accounts after announcing it had incorrectly accounted for revenue over the last three years.
The accounting probe at Qwest, under new management since last month, is the latest in a string of corporate accounting scandals to come out of the US.
Qwest’s new management has said there may be further inquiries into its accounting policies after the Securities and Exchange Commission and its external auditors had completed their investigations.
Accounting treatment dating from 1999 showed the company had prematurely booked hundreds of millions of dollars of revenue.