KPMG and Deloitte Now Want More Time to Restate Satyam Financials

June 14, 2010

David Nelson

We have blogged extensively earlier about the huge Satyam scam (January 2009), PricewaterhouseCoopers India’s involvement and subsequent hiring of KPMG and Deloitte to restate the company’s financials (from 2002 to 2009) and come out with the truth about the exact financial position, the nature of true accounting and set to rest speculation on how this travesty was perpetrated.

The restatement would clear up the real situation about the financials, and clarify whether Mr Raju had fudged the accounts or diverted the funds from the IT company to finance his real estate companies.

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Overstock Back on Solid Footing With Help from KPMG

We had blogged earlier about Overstock.com, which had changed three auditors in 2008-2009, from PricewaterhouseCoopers to Grant Thornton to KPMG, all in a space of about a year, and been in trouble with Nasdaq for filing unaudited financials...

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Huron's Shares Dive on Tepid 2010 Revenue Outlook

Huron Consulting Group Inc. just released its full year 2009 financial numbers, with full year 2009 revenues of $663.9 million (before reimbursable expenses), growing 7.9% from full year 2008 revenues of $573.8 million (before reimbursable expenses). For the Q4-2009 quarter, revenues of $162.9 million, decreased 0.7% from Q4-2008 revenues of $164.0 million. On a GAAP basis, full year 2009 net income was a loss of $(32.9) million compared to a net income of $10.1 million for full year 2008. On a per share basis, full year 2009 was a loss of $(1.63) compared to full year 2008 diluted earnings per share of $0.53. Dragging 2009 net income lower was a 2009 goodwill impairment charge of $67.0 million and restatement-related expenses of $17.5 million...

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Auditor Merry Go Round at Overstock.com

                              We were intrigued by a recent quote from Overstock.com's President.

On December 29, 2009,we saw, "It is nice to be back with a Big Four accounting firm," said Jonathan Johnson, President of Overstock.com. "We are pleased to have the resources and professionalism that KPMG brings as our auditors. We will work closely with them to timely file our 2009 Form 10-K. In the meantime, we remain in discussions with the SEC to answer the staff's questions on the accounting matters that lead to our filing an unreviewed Form 10-Q for Q3."...

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Huron Consulting Group Q3-2009 Operations Strong, Shares Zoom

Huron Consulting Group Inc. (NASDAQ: HURN) just reported its Q3-2009 results, with revenues of $172.2 million increasing 2.1% from $168.7 million in Q3-2008 and up sequentially from $165.8 million in Q2-2009. However, more importantly, Huron took a $106.0 million non-cash pretax goodwill impairment charge, about 20% of the total goodwill balance of $506.5 million as of June 30, 2009. In addition, there were restructuring and restatement charges of $15.1 million. The GAAP loss per share including the aforementioned charges was $(3.16) in Q3-2009 compared to diluted earnings per share of $0.12 in Q3 2008...

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Shocking Accounting Scandal at Huron Consulting Group

Just after market close on Friday July 31st, 2009, Huron Consulting Group dropped a bombshell on investors by announcing an intention to restate its 2006 to 2009 financial statements due to incorrect accounting of “non-cash charges relating to how payments received by the sellers of certain acquired businesses were subsequently redistributed among themselves and to other select Huron employees”. Shell shocked investors immediately sold HURN stock, causing the stock to fall by an astounding 70% from close of market on Friday at $45 to open at a paltry $12 per share at open of market on Monday August 3rd, 2009, and leading to an instant shareholder value disappearance of almost $700 million...

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