Xerox Finds Accounting Irregularities in Mexico

Xerox Corp. said an independent investigation showed that domineering managers who sought to “drive growth at any cost” colluded to cause accounting irregularities at its Mexican operations. The struggling business machine maker said it has fired 13 senior managers in Mexico since the problems were first discovered. It charged $120 million against earnings in the second and third quarters related to the irregularities. The Securities and Exchange Commission has been conducting a separate investigation since June. Xerox said it has conducted a worldwide review of its internal audit controls to determine whether other divisions had similar issues. The company said the problems found in Mexico were not found in any other major unit operated by Xerox.