McAfee sees accounting weakness
Another tech company that can't keep the books
Anti-virus provider McAfee has become the latest company to warn the stock market that its accounting procedures could fall foul of US accounting laws.
McAfee said it had found material weaknesses in the way it accounts for income tax, revenue and the way it closes its books.
The company said, on the advice of its auditors, it had started "a process to document, evaluate and test our internal controls and procedures". After which it became clear there were material weaknesses in internal controls.
The introduction of Sarbanes-Oxley accounting rules has caught out several technology companies.
In a filing with the Securities and Exchange Commission the company said it was hiring more internal accountants, improving documentation and review procedures, improving annual review process for "certain key account balances" and improving training for McAfee beancounters.
McAfee has had run-ins with financial regulators in the past. In March 2002 McAfee, in its previous incarnation as NAI, said it was being investigated by the SEC. In 2003 NAI said it was restating results for 1998, 1999 and 2000.®
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