Wiz Financial Information Questioned

An accounting firm that resigned during an audit of struggling discount software company Wiz Technology apparently had strong reservations about the financial information it was getting from the company. Wiz, based in San Juan Capistrano, said it has hired a new accounting firm--its fourth in 17 months. Auditor Grant Thornton LLP, which resigned last week, said it was concerned because the $8-million-a-year company’s management did not adequately oversee financial practices and policies and had overstated the company’s projected fiscal 1996 financial performance in public statements that it later had to correct. The accounting firm’s comments were included in a report Wiz filed with the Securities and Exchange Commission. Grant Thornton’s abrupt departure after less than three months as Wiz auditor signals serious concerns about the business, educational and entertainment software company, industry observers say. Wiz executives could not be reached for comment.