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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (926)	12/9/1999 4:35:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 3770

JDN, I did not mean to imply that the situation to CD was similar. CD was guilty of massive fraud by overstating earnings in their CUC division. As I recall, they overstated earnings by capitalizing what should have been expensed. What I am saying is that I do not rely on CPA firms and their audit divisions to uncover problems. CD, too, was a very prominent company. And their CPAs did not uncover any problems. And right up until the company admitted the problems, Wall Street analysts stood by them. I can cite a litany of cases where CPA firms have signed off on accounting practices, only to have companies subsequently forced to restate their earnings. I too, am heartened by the fact that the company has decided to subject all of its recent acquisitions to audit by three different accounting firms. But what heartens me most is an examination of TYC's cash flow. Assuming that the numbers are real, it cuts through a lot of the accounting issues and gives us a clearer picture of how the company is doing. TTFN, CTC