The US Securities and Exchange Commission is investigating IBM’s accounting practices in regards to certain transactions.
IBM said that it came to know about the investigation in August, which is focused upon revenue recognition with respect to certain deals that took place in the US, Britain and Ireland.
The company did not disclose the details of the deals that were being probed, but said that it is cooperating with the SEC.
Reuters quoted IBM spokesman Edward Barbini as saying that the company "has a rigorous and disciplined process for the preparation of its financial statements and the reporting of revenue."
The company posted a huge drop in third-quarter revenue and cut its full-year profit forecast last week as a stronger US dollar led to weak demand in China and other emerging markets.
IBM has been a subject of several SEC probes in the past, which includes an investigation that took place in 2013 on how it reported revenue from cloud computing business.
The regulators later decided not to take any action following the investigation.
In 2011, IBM charged with violating the books and records and internal control provisions of the Foreign Corrupt Practices Act of 1977 ("FCPA") for providing improper cash payments, gifts, and travel and entertainment to government officials in South Korea and China.
