HP accuses Autonomy of false accounting
Hewlett-Packard has accused its acquired UK subsidiary Autonomy of accounting improprieties following a write-down of $8.8bn on its $11bn acquisition.
HP published its fourth quarter earnings today, citing Autonomy's "accounting improprieties and disclosure failures" as the reason for its $6.85 quarterly loss.
HP called in KMPG to conduct due diligence work before the acquisition, effectively reviewing Deloitte's auditing of Autonomy, but both Big Four firms failed to spot any accounting errors.
The company acquired Autonomy in 2011 in a £7.1bn deal, which saw its chief executive Mike Lynch pocket around £500m.