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.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access