Groupon had a number of accounting problems leading up to its IPO. And now that it's public the problems persist. Ernst & Young would not give them a clean bill of health because the company wasn't reserving enough money for customer refunds. In their fourth quarter Groupon reserved $42,300,000 for refunds. Ernst & Young thought $64,900,000 was a better number. That's just about 50% more than Groupon thought justified. Sales were also cut from $507,000,000 to $492,000,000. Furthermore, Ernst felt that Groupon needs help in closing its books.
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