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"That amounts to irregular accounts".
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Still, agency executives said it is unlikely that clients would bolt an agency over irregular accounting practices.
ConAgra Foods Inc. said that fictitious sales and irregular accounting at a unit caused the overstatement of profits for the last three fiscal years.
Mr. Nicolaisen's statement did not address many allegations raised by Ofheo, like irregular accounting or manipulation of expenses and earnings to earn larger management bonuses.
Among yesterday's winners, shares in General Motors rose $1.95, to $53.45, recouping the $1.58 it lost Thursday on rumors, denied by G.M., of irregular accounting.
The irregular accounting came to light in October after Olympus fired Michael C. Woodford, a Briton who was the company's president and chief executive.
Two former executives of the Vitesse Semiconductor Corporation, including the founder and chief executive, were charged with securities fraud Friday in connection with irregular accounting and backdating stock options.
In an interview, Mr. Carranza said the district opened the investigation in June after a community organization raised questions to him about irregular accounting practices.
Today's action may further scare an industry already reeling from the collapse of Enron, subsequent disclosures of irregular accounting at other large energy traders and accusations of market manipulation.
Such critics worry that this will make it harder to get countries to cut emissions further when it becomes clear that their collective efforts are not enough, and may even allow some to use irregular accounting methods.
ConAgra Foods said yesterday that it was in talks with federal regulators to settle an investigation of fake sales and irregular accounting at its farm-products unit during the 1990's.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com