Beazer Probe Finds Accounting Errors

Beazer Homes(BZH Quote) rose 6% early Thursday after the homebuilder said its profit from previous years will be restated higher as a result of an audit committee investigation.

Beazer has not released financial reports since the spring, when accounting worries and allegations of improper mortgage lending began to surface at the company.

The Atlanta-based builder said its internal investigation found its reserves for land and home costs were too high in previous years. The cumulative effect of correcting these matters will increase pre-tax income by more than $25 million, Beazer said. The restatement will, however, reduce 2006 pre-tax income by $20 million. ...