D&T Resigns after Dotcom Difficulties

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.

You may like these other stories...

You probably don't want to think about how many times you access the File menu in Excel 2010 or 2013. Personally I think Excel 2010 has the best possible File menu arrangement, other than having Print Preview grafted...
Following other recent high-profile hacking events, investigators discovered yesterday that hackers broke into the draft work paper files of several famous CPA firms. Revealing images of the scantily clad documents have been...
For bitcoin users, the taxman cometh. And you best know how to calculate taxes owed on what the IRS calls convertible virtual currency.In March 2014, the IRS issued Notice 2014-21, which declares virtual currency will be...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.