Auditing

SEC Eyes Departure of Inverness Auditor

Ernst & Young had resigned over what it deemed ''material weaknesses in internal controls.''
Stephen TaubFebruary 2, 2004

Inverness Medical Innovations Inc., a provider of women’s health and nutritional products, on Friday said it received additional information from the SEC related to an ongoing investigation stemming from the 2003 resignation of Ernst & Young as its auditor.

In October, the company had received an informal inquiry from the SEC’s Division of Enforcement. At the time, the company announced that it met with two representatives of the SEC’s Boston office to respond to questions regarding E&Y’s resignation and accounting and financial matters.

Last April, Ernst & Young, which had served as Inverness’ independent auditor since June 2002, resigned over what it deemed to be material weaknesses in its internal controls that could adversely affect the organization’s ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements.

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At the time, Inverness announced that it was already considering potential enhancements to the company’s internal controls and procedures, as well as strengthening its management depth and improving operations efficiencies, which would address the issues raised by E&Y.

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