Mikohn fires Andersen, notes several disputes

Tuesday, April 30, 2002 | 11 a.m.

SUN STAFF AND WIRE REPORTS

Mikohn Gaming Corp. of Las Vegas said it dismissed Arthur Andersen LLP as its independent auditor Monday, but it didn't say exactly why or name a replacement.

"The board of directors believes that it is in the best interests of the company to make a change in the company's certifying accountants," Mikohn said in a disclosure statement to the Securities and Exchange Commission.

Andersen provided tax, accounting and audit services to Mikohn. Mikohn shares were up 4 cents this morning to $6.34.

A spokeswoman today said the company had no further comment on the dismissal of Andersen or what company would be hired as a new auditor.

The disclosure statement said Mikohn disagreed with Andersen on the timing of revenue recognition for a sales transaction, which led the company to restate its quarterly filing for the period ended Sept. 30, to the satisfaction of the auditor.

The company also disagreed with Andersen regarding the capitalization and valuation of certain rights obtained during the year and fourth quarter ended Dec. 31.

Mikohn said both issues were resolved, as evidenced by Andersen issuing an unqualified report covering the company's 2001 financial statements.

Andersen also told the company that certain material weaknesses in internal control existed during 2001 and 2000, such as its process for timely and regular detail analysis of all balance sheet accounts.

The company said it took steps to correct these problems.