Bankruptcy Report Details First Brands Accounting, Audits (1)

First Brands Group LLC doled out bonuses to employees who booked accounting adjustments that inflated its profit margins and picked its outside auditor so that the automotive parts supplier could “do what we want.”

Those and other details about First Brands’ financial reporting were included in an initial report by a court-appointed examiner filed Monday with a US bankruptcy court in Houston. The examiner said that further investigation is necessary to probe the company’s accounting and the work of its auditor, BDO USA P.C., in addition to other aspects of the complex financing scheme.

First Brands, which filed for Chapter ...