D&T Resigns after Dotcom Difficulties

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The Big Five firm told its client, Financialweb that its "lack of adequate systems, controls, and personnel necessary to timely prepare internal and external financial statements" for the past three years was a reportable condition, and it was resigning immediately.

The auditors also recommended that the firm conduct an internal investigation into allegations that its stock was the target of manipulation, as raised in a federal indictment concerning a shareholder and consultant connected with the Internet firm.

Financialweb said that, when it was told of D&T's resignation, it was already conducting an inquiry into the allegations.

The Florida-based financial content provider added that it had brought in D&T to help it sort out its internal controls, a claim that the auditors found not to "have sufficient basis to agree or disagree" with.

Financialweb's financial officer resigned 16 days after the departure of the auditor. The firm, which is looking for a new auditor, said that the company, its officers and directors were not involved in any wrongdoing, nor were they alleged to have been involved.

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