PracticeAuditAccounting errors plague Chinese subsidiary of Anaren

Accounting errors plague Chinese subsidiary of Anaren

US components company announces accounting errors in its Chinese subsidiary and warns of possiblityof restatements

US microwave and electronic components company Anaren has announced
accounting errors at its Chinese subsidiary and further warned that its second
and third quarter results could be restated.

Anaren management said control deficiencies at the company’ s Suzhou
subsidiary resulted in pre-tax income being overstated for both the six months
and second quarter (which ended on 31 December 2006) and the nine months and
third quarter (which ended 31 March 2007), CNNMoney.com reported.

The overstatement of pre-tax income is in the range of approximately $800 000
(£396,870.42) to $900 000 (£446,479.22) or the nine months to end 31 March 2007.

This means that previous financial statements for these interim periods
cannot be relied upon.

The company said it had discussed the matter with its audit committee and its
auditor, KPMG.

Further reading


Anaren
Announces Accounting Errors at Its China Subsidiary

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