Printed from http://www.electronista.com

Olympus reportedly pulled auditor in secret after dispute

updated 03:55 pm EDT, Fri November 4, 2011

Revealed by former CEO in confidential letter

In 2009, Olympus announced that it had replaced its auditor, KPMG with another global acccounting firm, Ernst & Young. Reuters now reports that the camera and imaging equipment manufacturer failed to tell investors that the reason behind the firing was a disagreement over how to handle a questionable $687 million consulting fee for a $1.3 billion acquisition deal. Olympus recently fired its first non-Japanese CEO, Michael Woodward. in mid-October, allegedly in retaliation for his blowing the whistle on the inordinately large advisory fee.

Woodford, a 31-year veteran of Olympus, was ousted just two weeks after he assumed the role as president, and began questioning details of Olympus' $2.2 billion acquisition of the UK medical device firm Gyrus in 2008. It was Woodford who gave Reuters a confidential letter detailing Olympus' disagreement with KPMG and the accounting firm's subsequent removal.

On October 25, Olympus' now former chairman and president, Tsuyoshi Kikukawa, branded Woodwards' claims as "aberrent" and part of a power-grabbing scheme. The next day, however, Kikukawa suddenly resigned. Since the alleged scandal was revealed and subsequent investigations by officials in several countries began, Olympus shares have lost 55 percent of their market value.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News