ZURICH, March 13 ABB said on Monday
suspected fraud in South Korea cut its 2016 net income by $64
million in a case that has prompted the Swiss electrical
products maker's auditor to conclude the company failed to
maintain effective internal controls.
Full-year net income was revised down to $1.89 billion, ABB
said in its annual report, down from $1.96 billion reported in
February. The pre-tax impact was $73 million, less than the
roughly $100 million previously reported, due to insurance
ABB has said a South Korean treasurer disappeared after
engaging in a "sophisticated criminal scheme". Internal auditor
Ernst & Young concluded "ABB Ltd has not maintained effective
internal control over financial reporting as of December 31,
2016," according to the annual report.
(Reporting by John Miller)