The US Securities and Exchange Commission has opened a formal probe of computer maker Dell Inc’s accounting, the company said.
While the company did not explain what exactly the SEC is looking at beyond certain accounting and financial reporting matters, it is believed to relate to revenue recognition, rather than stock option accounting.
Dell has not yet filed its SEC forms for the second quarter, and as such has delayed its third quarter report by a week or two. It said in a statement that the delay has nothing directly to do with the SEC investigation.
The company first disclosed the possibility of and SEC investigation in September this year, although it said at the time that the informal probe had been going on since August 2005, when the agency had requested documents.
Dell CFO James Schneider, on a conference call in September, said: At the time we got it, it seemed like we would respond with the information. There really seemed like no reason to disclose it at that time.
Dell’s own audit committee is also looking at its accounts. The probes are believed to be into accounting as far back as 2002.