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Finance & Accounting
Pages 4 (1004 words)
Research paper Legal frameworks and moral constructs regulate behavior among professionals. Politically established rules that are enforced by legal systems regulate legal environments while enforcement of ethical provisions majorly relies on an individual’s conscience and fundamentals of integrity…
Some misrepresentations however aim at esteeming an organization’s financial position to present a better image to stakeholders. I, in this paper, review cases of accounting fraud. Worthen reports a claim by Hewlett Packard that Autonomy, a United Kingdom based company that it acquired two years 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 almost nine billion dollar write off and a consequent loss in hp’s trading. hp claims that its internal audit detected gross misrepresentation by Autonomy prior 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 conceal such acts but Autonomy’s founder dismissed the claims as false. The founder, Mr. Lynch who worked with hp after the acquisition however cited poor management by the new owner of his former software enterprise as the possible cause of the financial conditions at Hewlett Packard. Reports of formal action by hp for legal investigations and action by both United States and United Kingdom authorities identified significance of the case that would transcend international legal systems. ...
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