Whistleblower Explains One Way Cloud Companies Can Cook Their Books
October 26, 2012
Grazed from Business Insider. Author: Julie Bort.
Cloud computing is clearly changing the way the industry buys software, but it could also be tempting some SaaS companies to dupe investors.
The poster child for the situation could be SucessFactors, a cloud-based app company bought by SAP in February. The company was accused of misleading accounting procedures last year by a whistleblower who reported his misgivings to authorities, Francine McKenna of Forbes writes. This wasn’t the first time the red flag was raised over SuccessFactors’s accounting. ZDNet’s Dennis Howlett had also documented weirdness in how SuccessFactors reported revenue to investors via SEC filings…
Business Insider talked to the whistleblower, a salesperson who joined SuccessFactors from one of the company’s acquisitions. He said that, from 2009 to 2011, SuccessFactors salespeople were improperly writing contracts to make the company look like it was growing faster than it was…
Read more from the source @ http://www.businessinsider.com/successfactors-accounting-whistleblower-speaks-2012-10