Delphi Corp. said its audit committee has "substantially" completed its internal accounting investigation and no significant issues have been identified other than those previously disclosed.

"Although we continue to review the conduct of certain lower- and mid- level executives, we have concluded our review of officers and believe that no further changes in the company's top management will be required as a result of our investigation," the company said in a statement.

Delphi's former chief financial officer Alan Dawes left the company earlier in March after the audit committee said it had lost confidence in him - he has been replaced by acting CFO John Sheehan, who is also the company's chief accounting officer and controller.

Delphi's former chief accountant and controller also left the company, and the vice president of treasury, mergers & acquisitions, and new markets was 'reassigned' to a non-officer position. Pamela Geller remained treasurer reporting to Sheehan.

Delphi's audit committee began an internal investigation in response to an SEC inquiry regarding the accounting for certain transactions with suppliers of information technology services in 2001. The transactions under the internal review included rebates, credits or other lump sum payments received from suppliers or paid to customers from 1999 to the present. The committee also examined the company's accounting for transactions involving the disposition of indirect material and inventory and certain other transactions.

In its latest statement, Delphi said the review of transactions involving suppliers has been substantially completed and results, to be reported in the company's restated financial statements, did not require adjustments to previously reported financial results.

However, the company "improperly" accounted for $237 million in cash payments made to its former parent in calendar year 2000 as part of a settlement agreement. The investigation concluded that the payment should have been accounted for entirely as warranty claims and should have been expensed or charged against the warranty accrual in 2000 rather than reflected as an adjustment to post retirement obligations and amortised over future periods.

"Furthermore, with respect to $85 million in credits received in 2001 from its former parent, the company is determining the appropriate treatment of $30 million of such credits that were recorded as income, and will present its conclusions to the audit committee. The results will be reported in the company's restated financial statements," Delphi said.

"The company is reviewing two items not previously identified: the timing of the release of $45 million of reserves in the first quarter of 2002, and the period of recognition for an $18 million payment received from a customer in the fourth quarter of 2000, and will present its conclusions to the audit committee [and] the results will be reported in the company's restated financial statements."

Delphi said it continues to cooperate with the SEC's ongoing investigation and expects to review the audit committee's conclusions with the SEC soon. In addition it has been advised by the US Department of Justice which is conducting an investigation, but that the company is not a target of that investigation.

Delphi plans to complete the restatement of results and provide audited financial statements for 2004 by June 30 at the latest.