Most recently, Mr. Ingham was Senior Manager, Technical Accounting, Insight Enterprises, Inc.,...
Insight Enterprises
Insight Enterprises, Inc. (NASDAQ: NSIT) headquartered in Tempe, Arizona, is an information technology outsourcing business. It was incorporated in 1991 in Delaware. The company has more than 5,100 employees worldwide and is ranked number 471 on Fortune magazine’s 2011 Fortune 1000 list.[1]
[...]
2009 Accounting Restatement
In February 2009, the company disclosed a restatement of earnings from 2008 to 1996. The restatement amended an accounting error related to aged trade credit liabilities. The error was discovered by an internal review of the accounting systems, and the audit committee decided the aged trade credits were recognized from the balance sheet to the income statement before the underlying legal liabilities had been settled.[2]
The trade credits in question came about from unclaimed credit memos, duplicate payments, payments for returned products or overpayments made by the clients of Insight, and goods received from suppliers that were never invoiced.[3]
The cumulative effect of the restatement as disclosed by Insight is $61.2 million, or $37.7 million after taxes. The liabilities relating to the aged trade credits amount to a total of $59.4 million.[4] On March 24, 2009, a class action lawsuit was filed against Insight Enterprises for allegedly filing false and material misstatement financial statements because Insight Enterprise’s former chief financial offer, Stanley Labourne, and CEO, Richard Fennessy, misstated the financial statements due to the improper accounting treatment of trade credits.[5] Furthermore, Insight Enterprise’s senior management failed to prepare the financial statements in accordance with GAAP, and the company lacked proper internal financial controls resulting in financial statements that were materially false and misleading to their users.[6]
en.wikipedia.org |
