Computer Associates Target of Accounting Probe, Newsday Says
By Vivien Lou Chen
quote.bloomberg.com
Islandia, New York, Feb. 20 (Bloomberg) -- Computer Associates International Inc., the fifth-largest software maker, is the target of a federal criminal investigation into its accounting practices, Newsday.com said, citing unidentified people familiar with the matter.
The U.S. attorney for the Eastern District of New York and the Federal Bureau of Investigation are looking at whether the Islandia, New York-based company properly distinguished between revenue it received from software sales and the fees charged to service its software, the paper said. The probe is still in an initial stage, Newsday.com said.
Investors' concerns about accounting practices have heightened since the collapse of Enron Corp., the once-dominant energy-trading company kept debt off its balance sheet through the use of affiliated partnerships. Questions about Computer Associates' accounting were raised last year, when the New York Times reported that it overstated sales and profits for years.
A Computer Associates spokeswoman said she isn't aware of any investigation. ``I don't know anything about that,'' spokeswoman Rita O'Brien said.
An FBI spokesman and Executive Assistant U.S. Attorney William Muller declined to comment, Newsday.com said. |
