PracticeAuditAmerican Apparel withheld audit information claims Deloitte

American Apparel withheld audit information claims Deloitte

Deloitte has claimed that American Apparel withheld information needed for its audit report

CLOTHING RETAILER American Apparel has denied it withheld information from its auditors Deloitte & Touche.

The Big Four firm resigned as auditor in July claiming the business had withheld financial statements, reported the Los Angeles Times.

According to a regulatory filing yesterday, Deloitte notified American Apparel’s audit committee its report on the company’s finances, ending December 31 2009, could not be relied upon.

The audit committee refuted the allegations the retailer withheld financial statements for February 2010.

“Management disagrees with Deloitte’s assertions and does not believe that the February 2010 monthly financial statements were withheld,”

The company has hired Marcum as replacement auditors, who will conduct a re-audit. However, American Apparel believes the new audit will not result in any changes to the 2009 financials although a statement said they could give no “assurance” to that fact.

The retailer is currently in talks to bring in an external restructuring adviser to increase growth at the company, reported Reuters.

 

 

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