Xinyu, China-based solar wafer manufacturer LDK Solar (NYSE: LDK) said today its audit committee completed an independent investigation into the company's accounting of its silicon inventory, finding no material errors.

The investigation followed allegations made by LDK's former financial controller that the company incorrectly reported its inventories of silicon feedstock.

The committee concluded that the controller had not taken into account all the locations where LDK stores its silicon feedstock.

"The audit committee and its highly qualified professionals have conducted an extremely detailed and thorough investigation into these matters," said Louis Hsieh, one of the LDK outside directors who oversaw the investigation.

"We are confident that we have reached a well-reasoned, objective and correct result."

The company said the investigation was conducted by outside directors Hsieh and Bing Xiang, along with the audit committee's independent counsel, Simpson Thacher & Bartlett, and a Big Four accounting firm.

LDK said the committee also used independent silicon feedstock experts.

The company disclosed in October that it fired its financial controller "for cause" in September, after he spent just seven months on the job (see Mishaps and murmurs).

The company said its former controller, Charley Situ, subsequently sent emails to executives and regulators alleging inventory discrepancies.

In late October, LDK said the U.S. Securities and Exchange Commission was looking into the allegations (see SEC looking into LDK Solar).

The company did not provide an update on the status of the SEC inquiry.