(Reuters) – Accenture revealed on Thursday that its unit, Accenture Federal Services, is under investigation by the U.S. Justice Department due to allegations that its employees provided inaccurate information regarding compliance with federal security controls to the government.
The IT service provider stated in a regulatory filing that the criminal and civil probes were initiated following a voluntary disclosure made by Accenture Federal Services to the government. Accenture expressed concerns about potential negative consequences resulting from the investigation, while the U.S. DOJ has yet to comment on the matter.
Accenture Federal Services primarily collaborates with clients in the U.S. federal government and is responsible for 15% of the company’s total fiscal 2023 revenue from North America, which is its largest market.
The company acknowledged the uncertainty surrounding the resolution of the investigation, stating, “We cannot at this time determine when or how this matter will be resolved or estimate the cost or range of costs that are reasonably likely to be incurred in connection with this matter.”
Chavi Mehta from Bengaluru reported this story for Reuters and it was edited by Arun Koyyur.
Credit: The Star : Tech Feed
