Motley Fool: When Accounts Go Bad

Ordinary investors continue to suffer from company accounts going bad. Shares that have referred to ‘accounting irregularities’, ‘accounting errors’ or ‘accounting issues’ in the past twelve months include Condor Environmental (LSE: CDE), Cornwell Management Consultants (LSE: CWM), CRC (LSE: CCG), Fujin Technology (LSE: FJN), Interserve (LSE: IRV), Isoft (LSE: IOT), Petards (LSE: PEG), St Ives (LSE: SIV), TripleArc (LSE: TPA) and Westcity (LSE: WTC).

Probably the worst offender in that group is Isoft, a healthcare software firm. It announced the possibility of accounting irregularities in July, though this was not such a surprise given a change of accounting policy was announced one month earlier. That alteration effectively reduced 2005 sales from £262m to £186m and operating profits from £72m to £8m!…

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