Now, accounting fraud hits HP

Hewlett-Packard's acceptance of a massive accounting fraud at its British software unit Autonomy is an indication that many things are not right with the company. The fraud, the company has admitted to, will cost it the majority of $8.8 billion in charges.

The company discovered accounting improprieties after Mike Lynch, former Autonomy CEO was ousted in May. HP found that there was 'a willful effort by Autonomy to mislead shareholders. After the fraud garnered headlines, HP's shares registered a downward trend and its stock fell to a 10-year low, dropping 12% to $11.71 in regular trading on Tuesday.

Meanwhile Lynch has refused to buy HP's charges and has rather expressed shock on the blame of wrongdoing.

In the last few years, the company has seen an influx of problems in its management and lost marketshare in key segments like its core personal computer and printer businesses. The fresh controversy will certainly affect its standing as a global player.