Computer equipment maker Dell will have to restate four years’ worth of financial reports after an investigation into the company’s accounting practices revealed serious misconduct. The company expects to incur a charge of between $50 million and $150 million.

A year-long internal investigation found that the company’s financial department had manipulated the timing of expenses and payments over the four year period in order to meet Wall Street’s expectations. In some quarters, this involved under-valuing accounts.

And it appears that the instruction to do so came from on high. According to a company statement, the misleading accountancy took place “at the request or with the knowledge of senior executives, with the goal of seeking adjustments so that quarterly performance objectives could be met”.

Kevin Rollins, the CEO of Dell during that time who resigned last year after the company was overtaken by HP as the world’s largest PC manufacturer, was not named by the investigation.

Further reading

Information Age Today - Founder returns to revive Dell - February 2007
Information Age company analysis - Dell's potholed recovery