Atos: stock spirals as accounting errors identified
(CercleFinance.com) - The Atos share is in a spin on Thursday on the Paris stock exchange, currently down well over 10% after the group published a statement reporting accounting errors in two American subsidiaries.
The IT services company explained that its auditors had issued a "reservation" concerning these two entities, which account for 11% of its revenues, citing the need to carry out "additional work".
In their audit work, the auditors identified several 'weaknesses' in internal control at both Atos IT Solutions and Services and at Atos IT Outsourcing Services, particularly regarding revenue recognition.
In their report, the auditors mention several accounting errors, as well as a risk of circumvention of controls.
For UBS analysts, the uncertainty generated by the situation is undoubtedly a big negative for the stock.
In its statement, Atos said it was committed to the highest standards and determined to strengthen its controls.
This was not enough to reassure investors however. At around 10.30am, the IT consultancy group's share price was down nearly 14%, by far the biggest faller in the CAC 40 index, which was up 0.4% at the same time.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The IT services company explained that its auditors had issued a "reservation" concerning these two entities, which account for 11% of its revenues, citing the need to carry out "additional work".
In their audit work, the auditors identified several 'weaknesses' in internal control at both Atos IT Solutions and Services and at Atos IT Outsourcing Services, particularly regarding revenue recognition.
In their report, the auditors mention several accounting errors, as well as a risk of circumvention of controls.
For UBS analysts, the uncertainty generated by the situation is undoubtedly a big negative for the stock.
In its statement, Atos said it was committed to the highest standards and determined to strengthen its controls.
This was not enough to reassure investors however. At around 10.30am, the IT consultancy group's share price was down nearly 14%, by far the biggest faller in the CAC 40 index, which was up 0.4% at the same time.
Copyright (c) 2021 CercleFinance.com. All rights reserved.