SEC's MicroStrategy inquiry may target auditor

The Securities and Exchange Commission's investigation into the software maker's accounting reportedly is partly focusing on whether auditor PricewaterhouseCoopers overlooked irregularities.

VIENNA, Va.--The Securities and Exchange Commission investigation into software maker MicroStrategy's accounting is partly focusing on whether the company's auditor, PricewaterhouseCoopers, overlooked accounting irregularities, according to reports.

The SEC is investigating whether the auditors encouraged MicroStrategy to promote PricewaterhouseCoopers' consulting services to the software maker's customers and joint-venture partners. PricewaterhouseCoopers spokesman Steven Silber said its audits aren't influenced by other business considerations, The Wall Street Journal reported, citing people with knowledge of the matter.

MicroStrategy's shares have fallen 59 percent since March, when the company restated two years of financial results to comply with SEC requests.

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