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Sarbanes-Oxley News & Developments
Footstar CEO Hits The BricksChairman and CEO Mickey Robinson leaves Footstar, after an investigation found accounting problems.
> > Footstar Inc. announced Monday Chairman and CEO Mickey Robinson left the company, after an investigation found accounting problems and instances where management failed to properly communicate with auditors.
Board member Neele Stearns Jr. will take over as chairman and chief executive on an interim basis. Footstar said it is cooperating with a SEC investigation into its financial statements.
The investigation found $35.8 million in errors in how accounts payable were reconciled to the general ledger each month and about $10.3 million related to integration issues following the acquisition of Just for Feet.
The restatement follows an investigation overseen by the company audit committee into accounting problems discovered in November. The restatement includes adjustments to accounts payable, inventory, fixed assets, operating profits, and net income or loss, the company said.
The investigation found significant weaknesses in the internal controls and procedures, computer systems and organizational structure in the company. It also found incorrect acounting, insufficient communication by management and the accounting staff to the company internal and external auditors, and instances of insufficient attention and resources directed by the company to accounting issues.
Source: CNN Money
Published:2003-09-16
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