U.K. Regulator To Probe Autonomy Finances Before HP Deal
The Financial Reporting Council (FRC) has launched an investigation into the published financial reporting of Autonomy for the period between 1 January 2009 and 30 June 2011 - before the company's acquisition by Hewlett-Packard.
Hewlett-Packard, which has acquired Autonomy, on Nov. 20 accused the company of financial misreporting. Hewlett-Packard said Autonomy booked hardware sales to appear as more profitable software, and used transactions with resellers of its software to accelerate revenue recognition or fabricate sales.
The Financial Reporting Council is probing the published accounts of Autonomy for the period between January 2009 and June 2011, the agency said in a statement today.
Former Autonomy executives said today that they "look forward" to the FRC investigation.
Last November, Deloitte LLC said that it didn't find evidence of misrepresentations or improper accounting when it last audited Autonomy's finances for the year ended Dec. 31, 2010.
The FRC will next decide whether to bring disciplinary proceedings against anyone responsible for accounting errors and the matter may ultimately be referred to a tribunal. Sanctions from the regulator can include reprimands, fines and orders to withdraw accounting's firms? licenses, according to FRC's website.
The Financial Reporting Council is probing the published accounts of Autonomy for the period between January 2009 and June 2011, the agency said in a statement today.
Former Autonomy executives said today that they "look forward" to the FRC investigation.
Last November, Deloitte LLC said that it didn't find evidence of misrepresentations or improper accounting when it last audited Autonomy's finances for the year ended Dec. 31, 2010.
The FRC will next decide whether to bring disciplinary proceedings against anyone responsible for accounting errors and the matter may ultimately be referred to a tribunal. Sanctions from the regulator can include reprimands, fines and orders to withdraw accounting's firms? licenses, according to FRC's website.