Dell and its accountants
Those of you with an eye for scandal will have noticed the way computer giant Dell settled accounting fraud charges with US regulator the SEC.
In short Dell was receiving large exclusivity payments from chip maker Intel but did not disclose them. Indeed investors were left to believe that the money was all part of normal trading turnover while in fact the payments from 2002 to 2005 were helping Dell meet revenue targets.
Dell paid $100m, without admitting or denying anything, to settle the charges while chief executive and founder Michael Dell paid $4m to settle the charges, without admitting or denying anything. Kevin Rollins, the former CEO,did likewise.
Former CFO James Schneider paid $3m, under the same terms. A former vice president of finance, Nicholas Dunning, and assistant controller controller Leslie Jackson agreed terms too
But here’s the interesting thing – the three accountants were barred from practicing as at an SEC regulated company for five years.
Clearly there seems to be an imbalance. Dell pays up but goes back to being CEO, the accountants pay but also lose their ability to work. Some might wonder what the action against Dell and Rollins was not stiffer.
Strange days indeed in US regulation and an action hardly likely to foster confidence in the regulator.
More about:
The numbers you crunch tell a story. Your expertis...
14yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleLeveson enquiry unearths more than just phone hacking Read More...
View articleMuch to learn from the debacle over investment bank's tax Read More...
View articleInternational standard setter should Sharman's call on going concern Read More...
View articleSupreme Court will hear the case for accountants having legal privilege Read More...
View articleBaker Tilly has seen a surprising proportion of equity partners switch to salaried status Read More...
View articleSOCIAL MEDIA – love it or loathe it, our readers are talking and debating it. More importantly, they are wondering just how it fits into their b...
View article