CSC says SEC investigation extends to Australian business

Accounting errors and intentional misconduct have been found, according to CSC's CFO

An investigation by the US Securities and Exchange Commission has been expanded to include Computer Sciences Corp.'s business in Australia, the company said on Wednesday.

"Intentional misconduct" had been discovered in Australia in addition to accounting errors, said Vice President and CFO Mike Mancuso during a conference call for CSC's second-quarter financial results.

Mancuso said it did not appear the issues in Australia were on the scale of what happened with CSC's Nordic operations, but are "nonetheless disturbing."

In a filing later Wednesday with the SEC, CSC said it had suspended "certain personnel" in Australia but did not identify those involved. CSC has identified and recorded some US$19 million in "intentional accounting irregularities" and "unintentional accounting errors" related to its Australian operations, the filing added.

CSC said in February that the SEC had opened an investigation into accounting problems. The investigation focuses in part on fraudulent stock manipulation in the Nordic region, and the company has indicated the fraud was allegedly carried out by employees. In June, CSC attributed "the majority" of some $91 million in charges taken during its fiscal 2011 to "accounting irregularities arising from suspected intentional misconduct by certain former employees in our Danish subsidiaries."

Meanwhile, CSC said in Wednesday's filing that an internal audit committee was expanding its investigation to include "certain aspects of [CSC's] accounting practices within its Americas Outsourcing operation" as well as a number of "contracts and related disclosures that involve percentage of completion accounting methodology." These efforts are "in the early stage," CSC added.

On other issues, CSC is still in discussions with the U.K.'s National Health Service (NHS) over how to resolve the IT modernization program that was cancelled by the U.K. government in September.

CSC refunded US$265 million in advanced payments to the NHS, which were intended to fund Lorenzo, a system for sharing patient care records.

CEO Mike Laphen said there is "no assurance" that an agreement with the NHS will be reached soon.

Laphen, who announced his retirement last month, also said CSC is in the process of interviewing candidates for his job, but no replacement has been picked.

Send news tips and comments to jeremy_kirk@idg.com

Additional reporting by Chris Kanaracus

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags business issuesservicescscoutsourcingComputer Sciences Corp.Australiafinancial resultsSEC

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jeremy Kirk

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?