Hastings Fires Auditors

Staff |

Oct 23, 2000

News
Hastings Fires Auditors Staff -- 10/23/00 Hastings Entertainment is in the process of looking for a new accounting firm after it severed its relationship with its former auditors, KPMG, last month. According to a filing with the Securities and Exchange Commission, Hastings and KMPG disagreed over the classification of the write-down of inventory for the quarter ended July 31, 2000. In addition, KPMG said that in connection with its audit of Hastings's fiscal 2000 financial statements, it informed the company and its audit committee of "conditions involving internal controls and financial reporting that represented serious weaknesses." KPMG reported that it considered the material weaknesses when it completed its audit for fiscal 2000. The filing further notes that KMPG did not include on Hastings's fiscal 2000 and 1999 financial statements an adverse opinion based on any internal weaknesses, although it did note that the company's financials were restated in fiscal 1999 and 1998. Due to problems with its inventory system, Hastings restated its earnings downward by $32 million for the five years prior to fiscal 2000 (News, Mar. 13).

News

Hastings Fires Auditors
Staff -- 10/23/00

Hastings Entertainment is in the process of looking for a new accounting firm after it severed its relationship with its former auditors, KPMG, last month. According to a filing with the Securities and Exchange Commission, Hastings and KMPG disagreed over the classification of the write-down of inventory for the quarter ended July 31, 2000. In addition, KPMG said that in connection with its audit of Hastings's fiscal 2000 financial statements, it informed the company and its audit committee of "conditions involving internal controls and financial reporting that represented serious weaknesses." KPMG reported that it considered the material weaknesses when it completed its audit for fiscal 2000.

The filing further notes that KMPG did not include on Hastings's fiscal 2000 and 1999 financial statements an adverse opinion based on any internal weaknesses, although it did note that the company's financials were restated in fiscal 1999 and 1998.

Due to problems with its inventory system, Hastings restated its earnings downward by $32 million for the five years prior to fiscal 2000 (News, Mar. 13).

A version of this article appeared in the 10/23/2000 issue of Publishers Weekly under the headline: