Interpublic Group yesterday said it would restate earnings for 2000-2004 because of problems in accounting for revenue, acquisitions and lease expenses, and in a filing with the Securities and Exchange Commission cited weak financial controls and a decentralized operational structure, reports Adweek. The SEC has been investigating IPG's accounting practices since early 2003. In the filing, IPG disclosed that its internal investigations revealed "possible employee misconduct" and accounting errors that it called "qualitatively material." The investigations were primarily into agencies located outside the U.S.

IPG has also yet to file its 2004 annual report or those for the first and second quarters of this year - and failure to file by September 30 could lead to its being delisted from the New York Stock Exchange, writes AdAge.

IPG said that it "remains on track" to file all those reports by the end of the month.

Regarding its internal investigation, IPG said accounting errors attributable to misconduct resulted from falsifying books and records; the violation of laws, regulations and company policies; the misappropriation of assets; and "inappropriate" customer charges and dealings with vendors.

This is the second time in two years or so that Interpublic has restated financials. In early 2003, it restated earnings downward by $181.3 million for the previous five years, after an internal investigation.

IPG has recently lost some of its largest accounts, including financial services giant Bank of America, automaker General Motors and home-improvement chain Lowe's.