Stocks in Atos crash in France after auditors discovered accounting errors in the United States

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Stocks in Atos crash in France after auditors discovered accounting errors in the United States


PARIS – Atos SE, in France, said its auditors found accounting errors in two US subsidiaries and were unable to verify all of its accounts before the tech company’s annual meeting of shareholders some information.
The two U.S. units, Atos IT Solutions and Services Inc. and Atos IT Outsourcing Services LLC, account for 11% of the company’s revenue and 9% of its operating margin, Atos said Thursday.
Shares of the French IT services company fell 14% in Thursday morning trading. Atos declared that it had not identified any material anomalies in its annual accounts.
Atos has pursued a series of acquisitions in the United States in recent years, including the $ 3.4 billion deal in 2018 to buy rival Syntel, based in Troy, Mich. profit of 725 million euros, said it made nine small acquisitions in the past year in areas such as cybersecurity and cloud analytics.
An excerpt from an audit report leaked by Atos on Thursday said the company’s auditors discovered “several issues related to weaknesses in internal control over the financial reporting process and revenue recognition” which led to several errors accountants. The errors relate to an accounting rule that determines how a business reports revenue for its customers, according to the extract.

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