It has not been a great year for Dell. In January, Michael Dell took the reins again, turfing out Kevin Rollins. And from there, things started going from bad to worse.

In March, I said that an accounting probe into Dell's accounting shenanigans were just the tip of the iceberg. Then in May, Dell was hit with a lawsuit alleging the company had cheated on its customers. Add to that the widening lead that the revitalized Hewlett-Packard has taken, stealing market share off Dell.

Now the company has lodged a filing with the Securities and Exchange Commission announcing that it will restate more than four years worth of earnings and that the restatement would cuts its net income by between $50 to $150 million.

Dell admitted it had doctored the books to reach quarterly financial targets, citing "evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets.

"According to the investigation, these activities typically occurred in the days immediately following the end of a quarter, when the accounting books were being closed and the results of the quarter were being compiled," Dell said. "The investigation found evidence that, in that timeframe, account balances were reviewed, sometimes at the request or with the knowledge of senior executives, with the goal of seeking adjustments so that quarterly performance objectives could be met. The investigation concluded that a number of these adjustments were improper, including the creation and release of accruals and reserves that appear to have been made for the purpose of enhancing internal performance measures or reported results, as well as the transfer of excess accruals from one liability account to another and the use of the excess balances to offset unrelated expenses in later periods."

The accounting adjustments were anywhere from several hundred thousand to several million dollars.

According to Dell's press release, the investigation involved more than 375 people, more than five million documents, and required more than 200 interviews of company personnel. Investigators also reviewed thousands of journal entries and supporting documentation.

The company also announced it was reorganizing its finance department and had appointed a new chief accounting officer. In a conference call with investors, chief financial officer Don Carty said there was "evidence of fraud" in one transaction. "This has been a very difficult and arduous road for the company. This is not a happy story," Carty said, reports BusinessWeek. Dell also plans to fire, fine or reprimand certain employees, reports Computerworld.

Dell certainly has its work cut out. This is going to be one long road back. Watch this space.