Feeds

DoJ zeroes in on AOL accounting practices

Criminal investigation commences

  • alert
  • submit to reddit

Intelligent flash storage arrays

The slick accounting magic by which an ISP called AOL managed to puff itself up into a thing seemingly capable of swallowing up a media behemoth like Time Warner is under investigation by the US Department of Justice (DoJ), the Associated Press reports.

The criminal inquiry is compounded with another by the Securities and Exchange Commision (SEC), announced about a week ago. The prospect of a classic SEC wrist-slapping caused considerable alarm on Wall Street which punished the stock last week, and the bad-assed DoJ execs-going-to-jail business knocked the hypertrophied media conglomerate's incredible shrinking stock down an additional seven per cent on the news Wednesday.

For its part the company claims to have followed 'normally-accepted accounting standards' duly confirmed by its righteous auditor.

"As we have consistently said, our accounting is appropriate and in accordance with generally accepted accounting principles; and our outside auditors, Ernst & Young, have repeatedly confirmed that," AOL Time Warner flacks whinged in a press release.

So apparently none of this is their fault. The problem, clearly, is 'normally-accepted accounting practices' which make deceiving investors something of a latter-day commercial sacrament. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?