Xerox accounts error climbs to £4bn
Office equipment company Xerox has allegedly exaggerated its figures in the past five years by an estimated $6bn (£3.92bn), a new audit has found.
In April, the SEC estimated Xerox had ‘improperly accelerated’ its revenue by $3bn (£1.96bn) for the last four years between 1997 and 2000.
But the new audit, carried out by PricewaterhouseCoopers, which also looked at 2001 figures, found new accounting problems, the Wall Street Journal said, citing people familiar with the matter.
Xerox ordered the new audit as a result of a settlement the company made with the SEC in April, when it was first accused of ‘trick accounting’ by the watchdog. The company is expected to file restated figures by Monday.
KPMG, the company’s auditors at the time and PwC – appointed as the new company auditor in October 2001 – had not responded to AccountancyAge.com at the time of writing this story.
Shares in the company fell as much as 40% in Europe on the fresh accusations.
The shock news follows events at WorldCom and Enron, which have rocked the business and accounting worlds.