I know that you like to keep up on your largest holding, so I thought I'd pass this on. You do own a 100 lot of AhRheemYaSoft doncha?!?:
"AremisSoft Fires Auditor PKF After Reports Disavowed (Update2)
2002-01-29 18:22 (New York)
AremisSoft Fires Auditor PKF After Reports Disavowed (Update2)
(Adds AremisSoft seeking new auditor in fifth paragraph.)
Washington, Jan. 29 (Bloomberg) -- AremisSoft Corp. fired its
outside auditor, PKF, a month after the firm disavowed its audit
reports on the business-management software maker's financial
statements because of accounting questions.
Minneapolis-based AremisSoft has said it expects to restate
past results because it can't confirm $90 million of revenue
reported last year by its Emerging Markets Group. PKF, formerly
known as Pannell Kerr Forster, said last month its reports
affirming AremisSoft's 1999 and 2000 financial statements
shouldn't be relied upon by investors.
The auditor's disavowal was one of a series of blows against
the company, beset by investor lawsuits and government
investigations. AremisSoft also announced 150 job cuts last month,
and its shares have fallen to 83 cents, down 3 cents today.
AremisSoft's board, on the recommendation of its audit
committee, ``determined to dismiss'' PKF Jan. 23, the company said
in a filing with the Securities and Exchange Commission.
No replacement was named in the filing. A spokeswoman said
the company is still conducting a search. She declined to comment
further about PKF's dismissal.
Aside from the disavowal, ``to the knowledge of current
management of AremisSoft, there were no disagreements'' with PKF
that would have resulted in an adverse audit report the past two
years, the filing said. The company is requesting PKF to furnish a
letter affirming that statement.
AremisSoft has dismissed PKF at least once before. While
preparing to go public, the company replaced the firm with Ernst &
Young in May 1998. Then AremisSoft hired back PKF in December the
same year, before completing its initial public offering in April
1999, according to SEC filings.
While AremisSoft didn't name a new auditor in today's filing,
the company hired Deloitte & Touche LLP forensic accountants to
assist in its internal investigation of the overseas operations
beginning last August, according to the filing.
The subjects of the probe include operations in Cyprus and a
contract with the Bulgarian national health system, for which PKF
was able to confirm only $1.7 million of $7.1 million in revenue
recognized by AremisSoft.
Officials at London-based PKF couldn't be reached for
comment.
--John Rega in Washington (202) 624-1907 or jrega@bloomberg.net
Editor: Arthur
Story Illustration: To chart the performance of AremisSoft shares
against broader markets: {AREM US <Equity> COMP <GO>}.
Company News:
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