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More on H-P/Autonomy: The WSJ reports its talks with ex-Autonomy employees, partners, and...

More on H-P/Autonomy: The WSJ reports its talks with ex-Autonomy employees, partners, and attorneys "paint a picture of a hard-driving sales culture" that used aggressive accounting to keep license revenue growing. Up-front (as opposed to deferred) revenue recognition and deals in which Autonomy agreed to buy product/services from a "customer" were common. An H-P source expresses confidence some of Autonomy's accounting was improper regardless of whether U.S. or international rules are applied.
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Comments (4)
  • wyostocks
    , contributor
    Comments (8209) | Send Message
     
    And just what did HP do in "due diligence"?
    I still believe that even if the Autonomy accounting was wrong, HP screwed up and the fault is wholly theirs.
    27 Nov 2012, 12:27 PM Reply Like
  • Tricky
    , contributor
    Comments (1583) | Send Message
     
    I generally agree wyo -- this reminds me of the accounting fraud at Cendant, where the auditors were trying to defend that they never detected that something on the order of 75 PERCENT of revenues were totally bogus. I mean... what's the point of having accountants? A write-down on the order of, what, 80% of the acquisition value and no concerns were raised about the accounting during due diligence?
    27 Nov 2012, 12:31 PM Reply Like
  • wjbrown2003030
    , contributor
    Comments (39) | Send Message
     
    The Big 4 accounting firms -- and the entire profession -- should be viewed in disgrace.

     

    But then, what's new here?

     

    It's like feigning surprise that the Bank of England just hired ... (wait for it) ... another Goldman Sachs alum to be its next chief.

     

    We exist in a world of liars, cheats, and scandalous behavior ... and we turn a willful, blind eye to it everyday, because it suits us to do so. Our media and celebrities deliver to us what we're content to consume.
    27 Nov 2012, 12:39 PM Reply Like
  • TippingPoint
    , contributor
    Comments (152) | Send Message
     
    Who cares what the auditors do or didn't do.....everyone knows that relying on the big accounting firms is like going to a whorehouse where everyone knows that all the girls have AIDS......the fact is that HP, the company, blew it.....and the blame has to be on the top person on the due diligence team responsible for verifying the the target firms accounting was legit: the CFO, Cathy Lesjack. It is waaaay past time for Ms Lesjack to be shown the door......she has been nothing but an enabler of every hair-brained idea of past HP management, and has squandered the fortunes of the company, leaving it financially vulnerable and close to broke. Fire her now; beat the Christmas rush. The Board needs to step up and start holding people accountable.
    27 Nov 2012, 06:52 PM Reply Like
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