Dell finds evidence of accounting errors and misconduct
By Thomas Ricker 
posted March 30th 2007 4:45AM
posted March 30th 2007 4:45AM
RuRow Raggy -- in a wee-hour, tail-between-the-legs announcement, Dell just admitted financial "accounting errors" and "evidence of misconduct." This, after a months-long, independent review by the company's internal audit committee which, incidentally has yet to complete its investigation. It's not clear if any of this will require the restatement of previous earnings reports although second, third and fourth quarter statements from Dell all remain preliminary and have yet to be filed with the SEC. An analyst said to have spoken to Dell's management about the matter in "general terms" calls the situation "serious" but "not life threatening" to Dell. However, we'd feel a bit better if s/he had talked to the SEC instead. After all, they've been probing Dell's financials since August of 2005. It's also not clear if the alleged Intel kickbacks play any role in the matter. However, the resignations of both Dell's former CFO and Kevin Rollins (former CEO) in recent months is starting to look suspiciously familiar. Hey, welcome back Michael, aren't you glad you came?[Thanks, LordFarkward]
This is retribution for making all those customers talk to support in India.
Amen!
Boy am I glad my audit firm stopped dealing with these guys a ways back... man that wouldn't be good press :0
Enron was one of the biggest companies in the world too... and Andersen was THE largest accoutning firm... it makes no difference how big you are when scandal hits.... this WILL rock Dell... just a matter of how hard.
The main difference between Dell and Enron being Dell has real assets. Factories and facilities that actually design, build, and sell something. Not saying they won't get smacked a bit. But they are no Enron.
Actually, didn't Dell outsource the majority of its design and manufacturing to Taiwanese and Chinese ODMs?
The main difference between Dell and Enron being Dell has real assets. Factories and facilities that actually design, build, and sell crap! Crap I say! Bwaaahaha!
Depends on the products. Some are some are not. The ones that are designed by Taiwanese/Chinese ODMs still have smaller Dell design teams assigned. Some products are still designed entirely in house. Final assembly of products is done in Dell factories. Servers, Desktops, final config/test of notebooks.
Dell isn't a horrible company --- I'm against outsourcing all together, but really if companies are going to start having karma like people, when's the bus coming back around for Halliburton / Tyco / SWBell and ATT / Diebold etc?
Their tech support guys can barely understand english. They know how much everyone hates talking to those Indian(dots not feathers) b@st@rds. Everyone hates DELL because they hear the outcry and they could care less.