/>
X

Entellium's lost millions

Larry Dignan outlines the main points of the Entellium fraud. Regardless of the final outcome, there are three glaring questions:How did the CFO and CEO overstate revenues across THREE financial years by a factor of four to five times without someone noticing the obvious problem of accumulated receivables not being extinguished by incoming cash?
dennis-howlett.jpg
Written by Dennis Howlett, Contributor on

Larry Dignan outlines the main points of the Entellium fraud. Regardless of the final outcome, there are three glaring questions:

  1. How did the CFO and CEO overstate revenues across THREE financial years by a factor of four to five times without someone noticing the obvious problem of accumulated receivables not being extinguished by incoming cash?
  2. What level of due diligence was undertaken by Ignition which is said to have invested $19 million?
  3. What were the two Ignition appointed board members doing?

As the recession bites harder, I expect to see a very different compliance regime. What form that takes is as yet unknown but I guarantee it will have a profound impact on enterprise systems.

Related

Are you ready for the worst Economy Class airline seats in the world?
airline-seats.jpg

Are you ready for the worst Economy Class airline seats in the world?

Business
This stuff is better than compressed air for cleaning your dirty tech
img-6864

This stuff is better than compressed air for cleaning your dirty tech

Office Hardware & Appliances
Google looks to reduce pushback bias in developers' software code review
close up programmer man hand typing on keyboard at computer desktop for input coding language to software for fix bug and defect of system in operation room , technology concept

Google looks to reduce pushback bias in developers' software code review

Developer