Adelphia Communications Fires Deloitte, Restates Earnings

Adelphia Communications Corp., the nation's sixth-largest cable television company, has announced it has fired its auditor, Big Five firm Deloitte & Touche, in the midst of a firestorm of publicity surrounding a necessary restatement of earnings for 2000 and 2001. The firm has said it plans to hire a new accounting firm, but no firm has yet been named.

Adelphia is currently under investigation by the Securities and Exchange Commission (SEC) as well as two federal grand juries since disclosing deals involving off-the-books loans to the family of company founder, John J. Rigas as well as to companies controlled by the Rigas family. These loans are estimated at more than $3 billion.

In addition, the company has missed deadlines to file reports with the SEC, including its annual 10-K financial report. Debt payments have been missed and the company has defaulted on agreements with creditors.

Adelphia division Century Communications filed for Chapter 11 bankruptcy protection from creditors earlier this week, and analysts have suggested that this filing is a harbinger of a similar filing forthcoming from the parent company.

Officials at Deloitte & Touche have been unavailable for comment.

You may like these other stories...

Here's a CPA who truly walks the walk. On March 15, Frank Ryan, CPA, departed San Diego, California, with plans to be in Ocean City, Maryland, by July 2 to teach a course at the Maryland Association of CPAs’ (MACPA...
When Theodore J. Flynn first joined the Massachusetts Society of CPAs (MSCPA) in 1970, it was a different world and a different profession.  The "Big Eight" were still headquartered in Boston. Vietnam War...
Accountant Rickey Charles Goodrich had it a little too good. Many bean counters would kill to serve as financial guru to the likes of Pearl Jam. Goodrich was hired in 2005, and the following year, he became the CFO of Curtis...

Already a member? log in here.

Upcoming CPE Webinars

Aug 26
This webcast will include discussions of recently issued, commonly-applicable Accounting Standards Updates for non-public, non-governmental entities.
Aug 28
Excel spreadsheets are often akin to the American Wild West, where users can input anything they want into any worksheet cell. Excel's Data Validation feature allows you to restrict user inputs to selected choices, but there are many nuances to the feature that often trip users up.
Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.