Tuesday, October 18, 2005

Boo-Fucking-Hoo

Hey buddy, here's a quarter, call someone who cares!

The Auditor-Investor ''Expectation Gap''

Investors seem to expect that an audit is an assurance of a company's financial health, laments Deloitte's CEO, who maintains that there's only so much an audit firm can do.

Stephen Taub, CFO.com
October 17, 2005

Investors may have unrealistically high expectations from auditors, said William Parrett, chief executive officer of Deloitte Touche Tohmatsu, in an interview with the Toronto Globe and Mail.

Parrett acknowledged that his industry must do a better job of performing audits and avoiding potential conflicts of interest between auditing and consulting work. According to the newspaper, however, he also warned that "we've always had this expectation gap between what the auditor really can do and what the investing public wants the auditor to do, or wants the audit to represent."
For example, Parrett elaborated, investors seem to expect that an audit is an assurance of a company's financial health. In fact, he reportedly stressed, an audit is an attestation of the accuracy of a company's financial statements, based on information that the company itself provides.(
continued...)

-Duh? Really? Hey Parrett, I am sure most investors would be happy if audits were accurate. No semi-sophisticated investor or anyone who knows what an audit is would claim that an audit assures financial health.........GM has an auditor (hell it could be your firm for all I know) and I don't think that anyone is mad at the auditor because GM just lost a few pennies this quarter. Good try at attempting to confuse auditor negligence with corporate mismanagement. Me thinks that maybe the occasional auditor doesn't have the balls to ask the tough questions............so let me get this straight, 2 days before the quarter closes you sell off $300 million of obsolete inventory and buy it back 3 days later at 10 cents on the dollar and don't record the loss?.........sounds kosher to me.

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home

 View My Public Stats on MyBlogLog.com