Consulting firm BearingPoint Inc., a spinoff of KPMG's former consulting business, said that it will be unable to file its third-quarter financial report by a deadline set this week by the Securities and Exchange Commission.

Delays in reviewing its accounting for the past two years have been worsened by a need to compensate for material weaknesses in the company's internal controls, and BearingPoint has said that its accounting errors could stretch as far back as 2003.

In a filing, BearingPoint said that other reasons for the delay include the need to review a majority of its contracts, the time required to complete expanded financial statement closing procedures in areas such as revenue recognition, and the need to validate information derived from an accounting system implemented in April 2004 for its North American operations.

In September, the company announced that the SEC had launched a formal investigation of the company, six months after the company said that Sarbanes-Oxley Section 404 requirements had led it to discover internal control deficiencies that it believed would have been classified as material weaknesses.

Formerly KPMG Consulting, BearingPoint is one of the world's largest consulting firms and provides companies with business and technology strategy. The company had originally expected to complete its 2004 statements in late September and file results for the first two quarters of 2005 shortly afterward.

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