Quanta Capital has confirmed in an SEC filing dated 15 August that its independent accountant PricewaterhouseCoopers has resigned.
While the troubled company's management states that during the accounting years 2004 and 2005, and up until August 2006, there have been no “reportable events” as defined by the SEC in relation to its accounts, it has confirmed that there were flaws in its internal controls. The company cited a number of examples, including: not maintaining a sufficient number of personnel within its US accounting function; not ensuring that effective controls existed to guarantee the accuracy of certain spreadsheets used in its financial reports; and failing to adequately manage the analyses for gross and ceded premiums and losses.
As of the 15 August, Quanta has appointed Johnson, Lambert & Co as its new independent accountants.
