Peregrine Fires KPMG After One Month
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Peregrine Systems Inc. fired KPMG as its auditor after one month because about $35 million of the business software maker’s revenue that must be restated was from sales through KPMG’s former consulting unit.
Keeping KPMG, which spun off KPMG Consulting last year, as auditor would violate U.S. auditor independence rules because of the past sales, Peregrine said.
KPMG said it learned of the sales to its former unit after the firm was hired as auditor.
Peregrine said its audit committee hired PricewaterhouseCoopers to complete an internal investigation of the accounting irregularities. It has begun a search for a new auditor.
Shares of San Diego-based Peregrine fell 32 cents, or 19%, to close at $1.34 on Nasdaq.
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