View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
  2. Software
February 11, 2013

UK watchdog to investigate Autonomy’s accounts

The watchdog's probe will cover the company's accounts for two and a half years up until June 2011.

By CBR Staff Writer

The UK Financial Reporting Council (FRC) has launched an investigation into the financial reports of software firm, Autonomy, which was acquired by Hewlett-Packard (HP) for £7.8bn in 2011.

The FRC’s probe will cover Autonomy accounts published between 1 January 2009 and 30 June 2011 and the work of Deloitte UK which audited the accounts.

The FRC said its decision to initiate an investigation folows after an accusation of fraud and will be consulting with the Institute of Chartered Accountants of England and Wales (ICAEW).

Last year, HP announced that it was writing off $8.8bn of goodwill and intangible assets relating to its acquistion of Autonomy.

Besides the UK watchdog, the US Department of Justice (DOJ) has also started an investigation relating to HP’s acquisition of Autonomy.

Autonomy founder and CEO Mike Lynch denied fraud allegations at the time of the deal.

Commenting on the UK FRC’s probe a spokesman for Lynch said the company welcomed the latest investigation.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

"As a member of the FTSE 100 the accounts of Autonomy have previously been reviewed by the FRC, including during the period in question, and no actions or changes were recommended or required," said spokesman.

"We are fully confident in the financial reporting of the company and look forward to the opportunity to demonstrate this to the FRC."

In November 2012, HP was sued by its shareholders who claimed the company knowingly made misleading statements about its controversial Autonomy acquisition.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.