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To: H. Wai who wrote (10923)	5/22/1998 12:19:00 PM
From: @jim	Read Replies (1) \| Respond to of 14631

>>>beside E&Y, some of informix senior management should be responsible for the restatement? No. IMHO, new senior management has shown us conservative, decisive, forward thinking planning in everything they've done so far. They've made a lot of tough decisions in a short period of time. They've turned this company around remarkably. Let's give them a big pat on the back. And let's give them, at least once, the benefit of any doubts we might have regarding this incident. We really have no way of knowing the ins and outs of the relationship with E&Y. Even if they were somewhat responsible for continuing with questionable revenue reporting practices, it's very possible that they were not given good guidelines by E&Y. I think it's absurd, to think that management if fully responsible for the reality of setting accounting practices. That's what accounting firms are there for. To create and guide management in good accounting practices. I will say, on behalf of the accounting firm, however, that what qualifies as "good" practices is a moving target. The boundaries of accounting change as industries mature. @jim

To: H. Wai who wrote (10923)	5/22/1998 12:35:00 PM
From: Austin	Read Replies (2) \| Respond to of 14631

I basically concur with the message from @jim. Bob F. is as straight and ethical as you will find in a CEO. If he would have known this opinion from E&Y in advance, he never would have reported the revenue in Q1. E&Y is supposed to be the expert on what qualifies as "revenue". That's one of the things they are paid for. Once again, Bob F. did the right thing once he knew the "facts". He revealed it and restated the revenue. E&Y screwed up big time IMHO.