Carlsbad, Calif. Resolving an accounting investigation reaching back to 1995, Sunrise Medical has agreed to the Security Exchange Commission's administrative order requiring it to cease and desist from violations of the reporting, record-keeping and internal control provisions of the Securities Exchange Act of 1934.

Sunrise did so without admitting or denying the SEC's conclusions or findings of fact.

"As we expected, the order does not charge the company with any violations of the antifraud provisions of the Securities Act," said Richard Chandler, Sunrise president and chairman. Chandler said the SEC's order does not include a monetary penalty, nor does it charge any current employees with wrongdoing. (Five employees were terminated or resigned following the discovery of the accounting errors.)

The SEC investigation followed Sunrise's announcement in October 1995 that its board of directors had formed a special committee of outside directors to investigate possible accounting irregularities at its Bio Clinic subsidiary, officials said. After completing its investigation in February 1996, Sunrise voluntarily restated its financial statements for fiscal 1994 and 1995.