Updated from 9:19 a.m. EDT

AOL Time Warner

(AOL)

was dropping almost 5% in Wednesday trading after the company confirmed a published report that the Justice Department has joined an investigation into its accounting practices.

The company confirmed the report, which indicated that authorities are working with the

Securities and Exchange Commission

to look into transactions in the company's Internet division. The news was first reported in the

USA Today

newspaper.

Specifically, the probe is believed to focus

on questions raised by the recent

Washington Post

article detailing what it called questionable revenue booking from advertising contracts.

AOL said it plans to cooperate with the Justice Department probe, but added that it is "not under any subpoena" from the government. AOL also said it believes its accounting was appropriate.

Shares of AOL were dropping 61 cents to $11.79 on the news.