Feeds

Overland hurls PwC auditors overboard

They said howwid things about our viability

Bridging the IT gap between rising business demands and ageing tools

Overland Storage management seems to have taken exception to PricewaterhouseCoopers' auditing of its accounts and fired the firm.

For the past two financial years PwC has added a stern warning to the accounts, saying that there was substantial doubt about Overland's ability to continue as a going concern. While even accountants are entitled to a view about the state of the struggling business, Overland was upset because PwC didn't actually identify any specific factor in the accounts that led them to that conclusion.

Presumably PwC was expressing a view based on such business events as Overland avoiding running out of cash by factoring arrangements, repeated staff headcount reductions, Nasdaq delisting, declining revenues and losses. Overland's thinking is that, if so, it shouldn't have.

The upset was detailed in an 8-K SEC filing that said PwC had been dismissed on October 12. Overland stated that, during the period of the two financial years:

There were no disagreements between our company and PwC on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure which, if not resolved to PwC’s satisfaction, would have caused PwC to make reference to the subject matter of the disagreement in connection with its report for such years; and there were no reportable events as defined in Item 304(a)(1)(v) of Regulation S-K.

The subject matter of the disagreement was about Overland's ability to continue as a going concern. Overland now thinks PwC shouldn't have expressed such doubts without backing them up. It sent PwC a letter saying this and asking it to send a letter to the SEC saying whether or not it agreed with Overland's point.

Connoisseurs of brevity will appreciate PwC's SEC letter:

We have read the statements made by Overland Storage, Inc. (copy attached), which we understand will be filed with the Securities and Exchange Commission, pursuant to Item 4.01 of Form 8-K, as part of the Company’s Form 8-K report dated October 12, 2009. We agree with the statements concerning our Firm in such Form 8-K.

Moss Adams is replacing PwC, and might be wise to watch what it says. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.