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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingAustraliabusiness issuesservicesfinancial resultscscSECComputer Sciences Corp.

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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?