BusinessCompany NewsPeregrine examines ‘potential’ accounting errors

Peregrine examines 'potential' accounting errors

Possible accounting errors, totalling as much as $100m, have been brought to the attention of US business software maker Peregrine Systems by its new auditor KPMG, prompting an internal investigation by the company's audit committee.

KPMG replaced rapidly disintegrating firm Andersen LLP in April and completed the audit of its 2001/2002 annual results.

In a statement made on Monday, Peregrine said while the ‘scope and magnitude’ of the errors had not yet been determined, ‘certain transactions involving revenue recognition irregularities, totalling as much as $100 million’ had been called into question.

It said this may impact on its financial results for 2002 and for prior years.

In addition, the San Diego-based company announced the resignations of its chairman and chief executive officer Steve Gardner, and Matt Gless, chief financial officer

Gardner has been replaced by Rick Nelson as acting chief executive, while Fred Gerson will take on the role of acting chief financial officer, with Charles La Bella as executive vice president and senior counsel

The company has informed the US Securities & Exchange Commission of the internal investigation and says it will keep the watchdog informed of its progress.

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