Property ManagementNAR Puts Faith In Homestore Audit Committee
On Dec. 21, Nasdaq halted trading of shares in Homestore.com, the operator
of Realtor.com, as it waits for Homestore to provide information about the
company"s accounting practices. The Nasdaq action followed an announcement by
Homestore that it has initiated an independent audit of its accounting
practices and informed the U.S. Securities and Exchange Commission of that
fact.
In a statement issued Dec. 21, Homestore said it expects the audit to result
in a restatement of some of its financial figures. "Although it is not yet
possible to predict the results of the inquiry, based on the inquiry to date,
the company has determined that it will restate certain of its financial
statements," the company said. The statement also said that the audit isn"t
expected to affect the services the company provides real estate practitioners.
A copy of the latest Nasdaq statement on Homestore is available online, at
Nasdaq.com. To view, enter "HOMS" on home page, click "info quotes," then click
on "company news."
The following statement was issued today by NAR President Martin Edwards
Jr.:
"Regarding the ongoing inquiry by the Audit Committee of the Board of
Directors of Homestore.com, Inc. into certain accounting practices, the Audit
Committee, with the assistance of independent legal counsel and independent
accountants, is conducting a thorough inquiry into the company"s accounting
practices.
"We at NAR have full confidence in the Audit Committee and the ultimate
resolution of Homestore"s accounting issues. NAR senior staff and association
volunteers have been working closely with Realtor.com management to insure full
Realtor support of their efforts to keep Realtor.com on track and focused on
current and future needs of Realtors and of the home buying-and-selling public.
Working together, NAR will spare no efforts to insure Realtor.com"s continued
success."