We weren’t the only ones to raise an eyebrow over the fact that Arthur Andersen & Co had cheerfully (or gloomily, who knows?) signed off the 1992 accounts of Columbia, South Carolina-based Policy Management Systems Inc and then withdrew its opinion earlier this month after the company began investigating its revenue recognition practices – Policy itself was none too impressed and has fired Arthurs and hired Coopers & Lybrand to be its new independent public accountants; the accuracy of the 1992 financial statements was cited as an issue in a class action lawsuit against the company and some of its officers and directors filed in federal court in Columbia in April 1993; Coopers & Lybrand will audit the company’s financial statements for the six months ended June 30 and if there are adjustments for prior periods, Coopers & Lybrand will work with the previous independent accountants to try to resolve them.
