A former PricewaterhouseCoopers auditor has settled charges with the Securities and Exchange Commission over his audits of video game developer Take-Two Interactive Software.
Robert Fish, 60, was assigned by PwC to audit Take-Two's financial statements from fiscal year 1994 to FY 2001. On Dec. 13, 2000 he signed an audit report containing an unqualified audit opinion accompanying Take-Two's fiscal year 2000 financial statements. However, Take-Two had been engaged in a scheme to inflate its reported revenues that year and others. It parked several hundred thousand video games with multiple distributors and improperly recognized approximately $26 million in revenues during FY 2000 (including $11 million from sales recognized at interim periods, which were subsequently returned and reversed at year-end) and inflated its after-tax earnings that year by at least $5 million.
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