Research paper Example | Topics and Well Written Essays - 1000 words - 6

Research Paper ExampleSome mis prototypes however aim at esteeming an organizations financial position to present a better image to stakeholders. I, in this paper, analyse qualitys of accounting fraud. Worthen reports a claim by Hewlett Packard that Autonomy, a United Kingdom based company that it acquired dickens divisions ago, had misrepresented its financial position to the harm of Hewlett Packard. Hewlett Packard reports that the acquisition was overvalued and the transfer of ownership led to an about nine billion dollar write off and a consequent loss in hps trading. hp claims that its internal take stock detected gross misrepresentation by Autonomy preliminary to the 2011 acquisition with claims of intentional motive to overstate both income and profitability of the organization. The perpetrators, according to the article, further intended to secrete such acts but Autonomys founder dismissed the claims as false. The founder, Mr. kill who worked with hp afterwards the acquisition however cited poor management by the new owner of his former software opening move as the possible cause of the financial conditions at Hewlett Packard. Reports of formal action by hp for effectual investigations and action by both United States and United Kingdom authorities identified significance of the case that would transcend international legal systems. History of Hewlett Packard, prior to the acquisition, had however been marred with rectitude compromises that led to reorganisation of its top management and the departure of its two chief executives in 2010 and 2011. trance Mr. Hurd had to resign in the year 2010 for conflict of interest that manifested in relationship with a client, his successor who also spearheaded the Autonomy deal arching down to pressure after barely a year (Worthen 1). Investigations into the fraud case were initiated in whitethorn 2012 after Hewlett Packards lead legal personnel reported allegations from a member of Autonomys managem ent team that gross manipulation of accounting records occurred before the propertys transfer to Hewlett Packard. While the informants anonymity was maintained, Autonomys auditing firm expressed its positions of having no interest of familiarity of such malpractices though the accounting firm did not express confidence in its clients accounting records prior to the sales. Mr. Lynch however maintained that his former business was developed on integrity and was stable before internal differences among hps management team led to its collapse. Supporting Lynchs allegations are reports of other managerial challenges such as mobility among hps top executives, decrease costs, increasing liabilities and reducing demand for some of the organizations products. Even though private audit identified inconsistency in classification of items for recording, hps allegations of gross misrepresentation was downplayed by its representation by distinguished accounting firms during the acquisition and the fact that the firms did not detect such claims (Worthen 1). Even though existing information does not establish validity of the claim, Autonomy appears to have misrepresented its accounting records to render a profitable and competitive enterprise that it was not. The primary motives of such misrepresentations have however not been set up but occurrence prior to Autonomys sales suggest that the misrepresentation aimed at deceiving say-so