Washington (Aug. 22, 2003) -- SureBeam Corp. fired Deloitte & Touche as its auditor after the firm apparently raised issues about the company's revenue recognition policies.
The company said in a statement that it believes its financial statements were "appropriate based on the facts and circumstances that existed at the time," according to Dow Jones. It added, however, that it intends to resolve Deloitte's concerns with its board audit committee, which is currently looking for a new outside auditor.
Deloitte & Touche apparently raised red flags over SureBeam's revenue recognition policies and certain contracts entered into in 2000 and affecting subsequent periods, all of which the company said were disclosed in various filings with the SEC that contained statements audited by national accounting firms, the wire service reported.
SureBeam had named Deloitte & Touche as its auditor in early June, replacing KPMG LLP. The reason for KPMG's dismissal wasn't disclosed and SureBeam said there were no disagreements.
SureBeam said it plans to file an amended 8-K, further describing Deloitte's dismissal and the issues the accounting firm raised.
-- WebCPA staff
