PracticeAuditNow UPC raises Andersen doubts

Now UPC raises Andersen doubts

Europe's biggest cable company United Pan-Europe Communications, whose shares are listed on the New York and London Stock Exchange, has said it may not continue employing Andersen as auditor.

In its annual results filed on Friday to the US securities and Exchange Commission, the Dutch company outlined the problem it and other Andersen-audited companies are facing in the United States.

After explaining the Enron scandal, UPC said ‘our access to the capital markets and our ability to make timely SEC filings could be impaired if the SEC ceases accepting financial statements audited by Andersen.’

‘If Andersen becomes unable to make the required representations to us or … is unable to perform required audit-related services … we would promptly seek to engage new independent accountants.’

In the report, Andersen in turn expressed its doubts on UPC’s survival and modified its report to say it the accounts raised doubts the company could continue as a going concern.

The auditor said: ‘The company has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern.’

In its results, UPC acknowledged Andersen’s statement saying: ‘There can be no assurance we will be able to continue as a going concern.’

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