Feeds

Overland hurls PwC auditors overboard

They said howwid things about our viability

Beginner's guide to SSL certificates

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. ®

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.