NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock is plunging 9.47% to $73.01 in morning trading on Monday after withdrawing its financial forecast and delaying the release of its 2015 fourth quarter earnings. 

The pharmaceuticals company is postponing the release of its financial results as its board of directors continues an internal review of its accounting practices and of its now-severed relationship with specialty pharmacy Philidor. 

"Accounting irregularities mean sell," TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.

He added that accounting issues make it difficult for shareholders to know what information they can rely on - whether the company in question is a "great American company" like Boeing (BA) or a Valeant. 

Additionally, the ongoing internal review by Valeant's board last week led the company to confirm that it would need to restate previous earnings since revenues recognized during the second half of 2014 should have been reported the following year.

Although shares surged as investors hoped that this might signal an end to Valeant's troubles, the withdrawal of guidance suggests otherwise, Cramer contended. 

"The withdrawal of guidance just says, listen maybe we're not done with the SEC," or other corporate governance, Cramer continued. 

CEO Michael Pearson, who is returning from a two-month medical leave, indicated in a statement that business is pretty good, but the company's recognition issues didn't seem behind them, Cramer pointed out. 

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He mentioned that areas of a company's business that seem fine to the company itself often are flagged by the SEC. Alternatively, someone on an audit committee within the company might notice something alarming that the company as a whole misses, Cramer said.

"It's a little more fluid," he stated.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Valeant's strengths such as its robust revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

You can view the full analysis from the report here: VRX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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