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Levi Strauss Dumps KPMG as Accountant


Feb. 12, 2007 (AFX News Limited) After years of turmoil, jeans maker Levi Strauss & Co. is dumping KPMG as its independent accounting firm a role that will now be filled by PricewaterhouseCoopers LLC.



KPMG's dismissal wasn't provoked by any disagreements about accounting principles during Levi's fiscal 2004 and 2005, according to a Friday filing with the Securities and Exchange Commission.

But a series of accounting blunders that forced Levi's to restate its financial results over a 2- 1/2 year period earlier this decade raised some tensions.

After Levi's closed the books on its fiscal 2003, KPMG rebuked the company's management for "material weaknesses in internal controls." Levi's replaced its chief financial officer as part of its remedy.

Levi's paid KPMG $5.1 million in fees during fiscal 2005. The San Francisco-based company is scheduled to release its fiscal 2006 results on Feb. 13.

Although it's privately held, Levi's discloses its sales and earnings because some of its debt is publicly traded.

Levi's sales have been eroding for most of the last decade as the jeans maker struggled to keep up with changing fashion tastes. Copyright 2006 Associated Press. All rights reserved. This material may not be

Copyright 2007 AFX News Limited. All Rights Reserved.

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