Medical equipment provider announces accounting errors

The Audit Committee of Symmetry Medical, a global provider of orthopaedic
devices, has announced an independent review of accounting irregularities at its
Sheffield unit.

The review follows a management report earlier this week, citing imporoper
accounting practices that include overstated revenues at the unit dating back
to 1999, prior to the acquisition of the Sheffield operation in June 2003.

In its review, management estimates that the overstatement of revenue and
income before taxes is in the region of $12m to $16m.

The employees believed to be involved in the inflated revenues – which
include the senior vice-president for Europe – are no longer with the company,
while others have been suspended pending completion of the review, reported.

The audit committee has already indicated that a restatement of financial
statements for the relevant periods could follow.

Further reading:

Medical Discloses Accounting Issues at Sheffield, UK Operating Unit and Possible

Medical says UK unit overstated revenue

U.K. Accounting May Be Flawed

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