Penn Traffic releases internal audit report

Penn Traffic, the upstate New York retailer who, as previously mentioned here, was investigating possible misstatements in its trade promotion allowances, has released the report of its audit committee:

The Penn Traffic Company announced today that the Audit Committee of the Board of Directors has completed its internal investigation of the Company's promotional allowance practices. The Audit Committee found that the Company had engaged in certain improper practices principally relating to the premature recognition of promotional allowances ...

The findings may result in restatements of earnings from the periods affected. The SEC is also investigating.