Question-and-Answer Session
Operator
(Operator instructions) Your first question comes from the line of Matt Sheerin with Thomas Weisel Partners.
Matthew Sheerin - Thomas Weisel Partners
Obviously, a lot of moving parts here and a lot of questions, just take focus on the accounting issues for a second. When and how was this detected?
Glynis Bryan
It was detected by an internal review that management conducted in 2008 just as it was going through its normal processes of closing out the respective quarters.
Matthew Sheerin - Thomas Weisel Partners
Okay. And these affected fiscal years ’07 and ’08 only?
Glynis Bryan
No. It does affect ’07 and ’08 but it is a policy that has been going back to 1996 with regard to the movement of these aged credits from the balance sheet into the income statement.
Matthew Sheerin - Thomas Weisel Partners
So, you have to review?
Glynis Bryan
We are going to back and we are going to end up doing the restatement based on our 2007, which is our last 10-Q, as well as the three quarters of fiscal year 2008 and we are going to be making one time entry in the December of 2004 and retained earnings to record all prior periods associated with the restatements.
Matthew Sheerin - Thomas Weisel Partners
December 2004 to cover the past years?
Glynis Bryan
To cover the past years, correct.
Matthew Sheerin - Thomas Weisel Partners
Okay. And do you have any idea of what, I mean have you brought in a third party accounting firm and do you have a new auditor, what are the costs involved here?
Glynis Bryan
We have not brought in a new auditor. We are working with a third party to help us size the overall liability and also to put the procedure in place with regard to how we are going to address it on a go forward basis. As of right now, the costs have not been significant I guess if you were thinking about it in the context of the stock option restatement. It is not anywhere close to that level and we do not anticipate it getting there but the investigation is not finished at this point in time.
Matthew Sheerin - Thomas Weisel Partners
Okay. And then you said that you would not be able to report your full 2008 earnings and numbers until you resolve this situation, but you also said it could take years. So, does that imply that it is going??
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