More press and explanation of the accounting problem:
Thursday January 30 8:39 PM EST
SyQuest Technology Inc replaces accountants
WASHINGTON, Jan 30 (Reuter) - SyQuest Technology Inc said Thursday it is replacing Ernst & Young LLP as its independent accountants and hopes to replace the firm with Price Waterhouse LLP.
In a filing with the Securities and Exchange Commission, SyQuest said the move was effective late last week and approved by SyQuest's board of directors.
The egagement of Price Waterhouse as the new independent accountants for the 1997 fiscal year is subject to final approval by the accounting firm, the filing said.
The switch follows a letter Ernst & Young wrote December 11, 1996 and received by Syquest's audit committee on January 29, which noted a "material weakness" in the company's internal control structure, the filing said.
The structure referred to is "relative to the preparation of accurate financial statements in a timely fashion" for the company's fiscal year ended September 30, 1996, it said.
Ernst & Young reported on SyQuest's financial statements for at least the two fiscal years ending September 30, 1996, and any subsequent interim period prior to January 23, 1997.
The accounting firm filed a letter on January 30 with the SEC regarding the change in certifying accountant.
In the letter the firm said regarding Syquest's statement over the lack of control, "We had considered such matter in determining the nature, timing and extent of procedures performed in our audit of...1996 financial statements."
SyQuest, based in Fremont, Calif., maintains manufacturing plants in Fremont and Penang, Malaysia, with additional facilities in Colorado, California, Europe and Asia.
(John, I guess that Ernst & Young were bitten by the fleas for the last time, or maybe worse, perhaps they were being paid with Syquest stock. Regards - Dale) |
