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The company recently said its horsepower ratings had been inflated for several years, blaming an internal accounting error similar to those that are all the rage on Wall Street.
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Reliant Resources fell $1.87, to $11.95, after it said that it was restating earnings for the second and third quarters of 2001 and postponing the release of its fourth-quarter results because of internal accounting errors with certain gas and power transactions.
The Hanover Compressor Company, a provider of natural gas compression equipment, restated its financial results yesterday for the third time after an internal review found accounting errors.
Those reports would normally have been released in the spring and summer, respectively, but Allegheny's were delayed by an internal review of accounting errors in previous financial statements.
In a four-page letter to Senator Charles E. Schumer, Democrat of New York, that it made public, the regulator also noted that both Fannie Mae and Freddie Mac, its smaller corporate cousin, remain "significant supervisory concerns". Both companies are still getting their financial statements in order after Ofheo investigators found lax internal controls and accounting errors totaling $11.3 billion.
Maybe there had been an accounting error.
The auditor's procedures include obtaining an understanding of University systems, procedures and internal accounting controls, and performing tests and other auditing procedures to provide reasonable assurance that the financial statements neither are materially misleading nor contain material errors.
The accounting error "is really serious," he said.
The deficiency was at first attributed to an accounting error.
The smallest was 63 cents, for an accounting error.
It was no clerical or accounting error.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com