PCC Confirms Accounting Irregularities
PCC Confirms Accounting Irregularities
Jason Sandefur
Precision Castparts Corp. had to correct its financial filings for fiscal years 2001 through the first quarter of 2006 after an independent audit committee discovered accounting irregularities by its Wyman-Gordon Houston and J&L Fiber Services operations, PCC reported.
“Findings from the investigation determined that inappropriate accounting occurred at both locations, as the result of both deliberate and inadvertent acts by non-executive employees,” the company noted.
However, correcting the errors did not materially affect results during that period. The corrections lowered net income by $1.9 million, which will be recorded as a cumulative adjustment in the second quarter of fiscal 2006.
“[PCC] has taken immediate action to address the cause of these errors, including termination of certain involved individuals, the development of improved policies and procedures, and enhancement of internal controls,” the company explained. Web: precast.com �2006 FastenerNews.com
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