The Lindon, Utah-based company maintained that it had had no disagreements with KPMG, and specifically that there were no disagreements over accounting practices with reference to its recent restatement of financial results for the first three quarters of 2004.
The restatement followed the identification of problems with the accounting of common stock issued as part of its equity compensation plans during fiscal 2004, but did not lead to any disagreements with KPMG, the company said.
According to SCO, KPMG notified that company on May 27 that it would be resigning as its accounting firm once it had completed its review of the company’s financial results for the quarter and half-year ended April 30, the results of which SCO announced last week.
Following KPMG’s resignation, SCO has moved from one of the Big Four accounting firms to a less well-known business, Tanner, which is located in Salt Lake City, Utah, close to SCO’s headquarters.
Tanner’s size, expertise, resources, and local accessibility will serve SCO’s shareholders well at this time in the company’s evolution, said SCO’s CFO, Bert Young.
