Article: Client drops Andersen for Peat following stock option dispute. (Spectrum Information Technologies Inc. retains KPMG Peat Marwick for 1994 financial statements, dismisses Arthur Andersen and Co.) (Change of Auditors) (Column)

* CLIENT DROPS ANDERSEN FOR PEAT FOLLOWING STOCK OPTION DISPUTE: The board of directors at Spectrum Information Technologies Inc. dismissed Arthur Andersen as certifying accountant following a disagreement over the appropriate accounting treatment for stock options granted as part of a plan to purchase shares of the company's own preferred stock.

Officials at Manhasset, N.Y.-based Spectrum ultimately elected to follow Andersen's recommendations on this issue, and to further address concerns raised by the auditors regarding the adequacy of the company's internal control structure.

KPMG Peat Marwick was retained to audit the company's financial statements ...

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