Posts by MK11

Autonomy ex-CFO Hussain guilty of fraud: He cooked the books amid $11bn HP gobble

Really?

OK so the US courts have found a UK national guilty of fraud. Unfortunately, I'm not surprised, the US have a history of finding someone foreign to blame for a US based catastrophe.

However, even if the CFO did cook the books (and I'm still not convinced) for a business that had approximately US$1bn revenue, surely you would have to cook the books to an astronomical level to justify an US$11bn adjustment and fraud of that magnitude would have stood out like a sore thumb. The type of things that HP are accusing Autonomy of mostly relate to the timing of revenue recognition not something that could generate massive differences.

This just smacks of a smokescreen to deflect the blame away from HP, their due diligence and their subsequent mismanagement (something of which they have a track record). My understanding is that HP had full access to Autonomy's books for months prior to the deal, were a party to much of the decisions in relation to the day to day running of the business and had their own auditors complete the due diligence.

Seems to me, HP paid over the odds in their haste to become a global powerhouse. Once they realised their error, they then scratched round looking for a scapegoat that wasn't HP. They decided that the seller was at fault for painting Autonomy in a good light and it was in no way their responsibility, no siree, nothing to do with them.

Ex-Autonomy exec agrees to be a witness for HP fraud case

Re: But the alledged dodgy accounting only bring forward sals 1 quarter

I'm struggling to see your point. Either;

a) Autonomy were very good at forecasting (or the Analysts were)

b) HP/KPMG should have spotted something that stood out like a sore thumb

Whatever the cause, how do you answer the original question. Allegedly moving sales from one quarter to the previous to meet sales expectations can not explain the $11b write off. There could have been at most one month sales forward booked to inflate the revenue, otherwise, there would have been a massive hole in the Balance Sheet which KPMG should have spotted during their due diligence.

I predict the US courts finding Hussain "guilty" of recognising sales under UK GAAP that were not recognised under US GAAP and so were "obviously wrong" despite the fact that Autonomy was a UK company and despite the fact that documents show HP were fully aware.

HP will then make a song and dance about how they were "right" all along and it was nothing to do with their mismanagement and the whole problem of why they massively overpaid will be swept under the carpet

Yeah, Autonomy's ex-chief financial officer is still up for wire fraud

Re: That wasn't it......

KPMG were responsible for the due diligence.

Deloitte did the Autonomy audit against UKGAAP.

Hmm

Americans don't need to invite anyone else to the World Court like they don't to a World Series.

The due diligence by KPMG should have highlighted the differing accounting treatment of revenue to the HP Board (not that they weren't already aware according to documents released). But this still does not explain how the classification of ~£5m in revenue (IIRC) in a different manner to our US brothers equates to $11b write down in value. If indeed the revenue was misstated by £5m then that is one heck of a multiplier to get to $11b

HP coughs up $100 MEEELLION to settle Autonomy lawsuit

You're missing the point

HP directors have used insurance cash to pay off the investors to ensure that they can't be sued for incompetence.

Nice way to ensure that, despite all the evidence to the contrary, no-one can say that the HP (mis)directors were in any way to blame for this cluster****.

HP lifts lid on Autonomy lawsuit claims, but Lynch cries BOLLOCKS

Re: The Enron Defence

Rather than Autonomy's auditors, surely it is the firm doing the due dilligence for HP that needs a kicking?

If the bulk of the $100m's differences relate to the UK to US GAAP differences then this ought to have been picked up by due dilligence.

But that still doesn't explain how $100m's of timing differences on revenue recognition then get converted to multi billion dollar valuation differences though.

Judge OKs HP's cash-free settlement plan in Autonomy investor suit

Seems perfectly reasonable

HP purchase a business for an amount that most people thought was too much money. They then mess up integrating the business into theirs. Next they realise that they have messed up and write off a huge chunk of the investment. To try to hide their culpability they say that it is not really their fault and start a smear campaign against anyone they could think of as a smokescreen claiming loudly and very publically that fraud was comitted (£5.5bn worth on a £180m t/o company!).

Now, they have struck a deal where, in exchange for never having to be held accountable for their own failings, everyone has to band together and sue whoever HP want.

If this goes down as it looks, then it may even give the HP guys protection from being sued for smearing the names of the Autonomy Board et al.

HP gulps down Aruba Networks for $3bn

Here we go again

How long before HP write off huge amounts and claim loudly that it was anyone but themselves at fault?

Ex-Autonomy execs: HP's latest wad blows apart fraud allegations

Correction

There seems to be some mis-understanding of the role of Deloitte in this. They were not the auditors responsible for the due diligence checking the company out for HP prior to the purchase, IIRC that was KPMG who have not as yet been served with any law suit. Deloitte were responsible for the annual audit of Autonomy's books for Autonomy's shareholders. In fact according to the Guardian, Deloitte were not told of the acquisition until 2 days before it was announced when they were requested by HP & KPMG at short notice to join a teleconference that only lasted 1 hour! How then can HP point the finger in any direction but themselves?

HP seem to be trying their very best to throw as much mud as possible in as many directions as possible in the vain hope that some of it sticks and to deflect as much heat away from themselves as possible.