(Reuters) -Super Micro Computer has begun the search for a new finance chief based on recommendations made by a special committee formed to look into the AI server maker's accounting practices, the company said on Monday.
The company said the independent committee's review, which took over three months, found no evidence of fraud or misconduct on the part of Super Micro's management, sending its shares up about 20%.
In late July, Super Micro's auditor at the time, Ernst & Young (EY), raised concerns about the company's governance, transparency and internal control over financial reporting, prompting its board to form a special committee.
The committee found that EY's statements were not supported by facts examined in its review, Super Micro on Monday said, adding the evidence did not raise any substantial concerns about the integrity of Super Micro's management.
"The Audit Committee demonstrated appropriate independence and generally provided proper oversight over matters relating to financial reporting," according to the committee's findings.
However, the committee found certain lapses from the company's side which the CFO was responsible for, including instances of not promptly informing the company's auditor of the rehiring of some former employees.
Super Micro said it does not expect to restate its previously reported financials. The company reiterated that it would complete its annual financial report for the year ended June 30, but did not provide a target date for the filing.
The company also appointed Kenneth Cheung, currently the vice president of finance and corporate controller at Super Micro, as its chief accounting officer following the committee's recommendations.
It also plans to name a chief compliance officer and a general counsel.
(Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)
