Dell Says Audit Found Accounting Errors

Mar 30, 01:27 PM

Current Headlines: DALLAS (AP) -- Dell Inc., one of the world's largest PC makers, said Thursday that an internal audit committee has found a number of accounting errors and evidence of misconduct in its months-long review of previous earnings statements.

Dell also said it would miss an April 18 deadline to file its annual 10K financial report to the Securities and Exchange Commission until the internal review is completed.

Dell shares fell in electronic trading when the news was released after markets closed.

In a short news release, the Round Rock, Texas, company said the internal audit had "identified a number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment."

Further details were not provided, and Dell spokesman Dwayne Cox said the company was unable to comment further.

The company added in the statement that it was working with management and the company's independent auditors to determine whether the errors would require the restatement of previous earnings reports.

"As we move toward the conclusion of our investigation, we are committing the time and resources required to ensure a thorough and comprehensive review and resolution of all identified issues and the implementation of appropriate remedial measures," Thomas W. Luce III, chairman of Dell's Audit Committee, said in the statement.

The company did not say how much longer the internal investigation would last.

Dell's earnings statements from the second, third and fourth quarters remain preliminary and have yet to be filed with the SEC.

Thursday's disclosure was the most serious admission yet of the extent of Dell's internal accounting problems.

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