An investigation by the U.S. Securities and Exchange Commission has been expanded to include Computer Sciences Corp.'s business in Australia, the company said on Wednesday.
"Intentional misconduct" had been discovered in Australia in addition to accounting errors, said Vice President and CFO Mike Mancuso during a conference call for CSC's second-quarter financial results.
Mancuso said it did not appear the issues in Australia were on the scale of what happened with CSC's Nordic operations, but are "nonetheless disturbing."
CSC said in February that the SEC had opened an investigation into accounting problems. The investigation focuses in part on fraudulent stock manipulation in the Nordic region, and the company has indicated the fraud was allegedly carried out by employees.
On other issues, CSC is still in discussions with the U.K.'s National Health Service (NHS) over how to resolve the IT modernization program that was cancelled by the U.K. government in September.
CSC refunded US$265 million in advanced payments to the NHS, which were intended to fund Lorenzo, a system for sharing patient care records.
CEO Mike Laphen said there is "no assurance" that an agreement with the NHS will be reached soon.
Laphen, who announced his retirement last month, also said CSC is in the process of interviewing candidates for his job, but no replacement has been picked.
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