Tweet
I blame this all on America, and our imperialistic policies and domineering attitude. We invented crime, corruption and sin.
-
-
Until auditors can be independent of the companies they are auditing you'll never get them pushing the companies for bona fide documents. They'll just feign ignorance and say they had no reason to doubt the validity of a document that claims to be genuine. Whilst their real concern is that they have to call the company they are working for liars, which will lose them the account and all that money from audit, accounts and other client services.
It doesn't help that auditors are generally not liable for failing to detect fraud or deliberate deception in accounts*. The concept of auditing is all a bit of a joke really, considering.
*In many instances even if they are aware of it they are not required to report it, unless it relates to soemthing like terrorism. They are simply advised to decline to sign off the audit report or accounts.
One day Canada will rule the world, and then we'll all be sorry.Comment
-
I drink Parmalat milk.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
-
Grant Thornton
It appears to me that Grant Thornton are the main accountants who should be faulted in this case. D&T were not on the watch for Bonlat.“It is no use trying to 'see through' first principles. If you see through everything, then everything is transparent. But a wholly transparent world is an invisible world. To 'see through' all things is the same as not to see.”
― C.S. Lewis, The Abolition of ManComment
-
Yeh, this isn't a gloat thread. It's just amazing to me that one forged document (if that is what happened) could be the basis of an auditor sign off for $5 billion in assets. Something might come out that they had inside help from Grant Thornton or Bank of America.
As to auditors, the Andersen debacle showed that a Big 5 acountancy firm could be brought down by something as simple as destroying potential evidence for one client. You would think that this example would strike righteous fear in the auditors, but maybe it doesn't (yet). Maybe another one has to fall. I don't know much about Grant Thornton, but would its dismantlement provide the sufficient level of terror?I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
-
The Financial Times is now talking like up to E10 billion ($12 billion) is missing. Wow.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
-
Don't look at me, I have less the $40,000,000.00 of it.Last edited by Lefty Scaevola; December 24, 2003, 13:10.Gaius Mucius Scaevola Sinistra
Japher: "crap, did I just post in this thread?"
"Bloody hell, Lefty.....number one in my list of persons I have no intention of annoying, ever." Bugs ****ing Bunny
From a 6th grader who readily adpated to internet culture: "Pay attention now, because your opinions suck"Comment
-
You are right, this is not clear at all.Originally posted by DanS
Yeh, this isn't a gloat thread. It's just amazing to me that one forged document (if that is what happened) could be the basis of an auditor sign off for $5 billion in assets. Something might come out that they had inside help from Grant Thornton or Bank of America.
As to auditors, the Andersen debacle showed that a Big 5 acountancy firm could be brought down by something as simple as destroying potential evidence for one client. You would think that this example would strike righteous fear in the auditors, but maybe it doesn't (yet). Maybe another one has to fall. I don't know much about Grant Thornton, but would its dismantlement provide the sufficient level of terror?
All assets recorded in third parties accounts (clients account or banks accounts) are subject to the confimation procedure by the auditors (direct inquiry from the auditor to the third party). The auditing firm of the subsidiary 1) should have obtained a written confirmation from Bank of America, and 2) should have been involved in the confirmation answer made by the subsidiary to Parmalat.
Blood is expected.Statistical anomaly.
The only thing necessary for the triumph of evil is for good men to do nothing.Comment
-
the hope is that the auditors liabilities come from the investor side. if u show the financial world an audit by the same ppl who audited enron hopefully they will laff at u and look elsewhere.Originally posted by Big Crunch
Until auditors can be independent of the companies they are auditing you'll never get them pushing the companies for bona fide documents. They'll just feign ignorance and say they had no reason to doubt the validity of a document that claims to be genuine. Whilst their real concern is that they have to call the company they are working for liars, which will lose them the account and all that money from audit, accounts and other client services.
It doesn't help that auditors are generally not liable for failing to detect fraud or deliberate deception in accounts*. The concept of auditing is all a bit of a joke really, considering.
*In many instances even if they are aware of it they are not required to report it, unless it relates to soemthing like terrorism. They are simply advised to decline to sign off the audit report or accounts.
thus the auditors need to maintain credibility to stay in business and the businesses need to hire credible auditors to get investors.
but yes it does seem opportunistically flawed.Comment
-
Is Grant Thornton a Brit accountancy firm?I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
-
-
Dan, in the "globalisation" thread, Ned linked to this NY Times article which is relevant to this one as well: http://www.nytimes.com/2003/12/25/bu...25euro.html?thComment
-
Of course, Grant Thornton is playing the "we wuz fooled" schtick in their press releases. The thing arguing against their complicity is that they were the ones to blow the whistle at this time.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
-
Yeah, I haven't seen such back-peddling since Wile E. Coyote ran over that cliff edge. Let's hope it does G-T more good than Mr. Coyote.
Comment
-
I have no knowledge of international finance, but shouldn't a third-party document (especially one "worth" $4 billion) presented by a primary party to another primary party require at least a phone call for verification purposes? "Hey, Parmalat sez they have a $4 billion account with you. Is that so?"
I once got a check from a person whose financial history resembled some of the finest products ever made by Goodyear and even I was smart enough to call his bank to ask if there were funds to cover. Maybe if this phone book thing doesn't work out I can go into high-level corporate finance.
Comment
Comment