The investigation, which began in 2003, questioned the timing of revenue recognition at the division.

This deferred revenue recognition is a more realistic accounting of software sales cycles, he said.

That was the second most frequently cited issue, trailing only revenue recognition as a source of control problems.

It is particularly relevant in cases of revenue recognition, sale and purchase agreements, etc.

The company said it involved "revenue recognition and other accounting and financial reporting matters."

This section specifically requires that improper revenue recognition and management override of controls be considered.

"And improper revenue recognition is a major, if not the primary, cause of earnings restatements in the technology sector."

"AremisSoft is extremely consistent and conservative with its revenue recognition," he said.

Many former employees of Computer Associates have said that the company's accounting problems run far beyond the premature revenue recognition in its 2000 fiscal year.

"The commission's view is that senior management has to be especially vigilant where the pressure to make the numbers creates the risk of improper revenue recognition."