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AUDITORS
blacksheep
post Posted: Oct 5 2018, 01:17 PM
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In Reply To: blacksheep's post @ Jun 25 2018, 12:40 PM

'Big four' accounting firms should face banking royal commission to prove independence, former ASIC investigator says
QUOTE
A former forensic investigator at the Australian Securities and Investments Commission (ASIC) has called for the major accounting firms hired to audit and approve sensitive company reports to be brought before the financial services royal commission to prove their independence.

Glen Unicomb, who spent more than 20 years at the corporate regulator, said he believed the "big four" accounting firms — PwC, Deloitte, EY and KPMG — risked being exposed to pressure to approve reports to protect lucrative advisory relationships.

Mr Unicomb told the ABC's AM program that accounting firms could "succumb to pushback" from clients particularly if a report is required was part of reporting to a regulator like ASIC or the Australian Prudential Regulation Authority (APRA).

"Obviously, the financial institution would be concerned if the review indicated there were serious deficiencies in their risk and compliance frameworks," Mr Unicomb said.

Mr Unicomb said today's business model for accounting firms was potentially conflicted, given the balance between a traditional pipeline of external audit work with a separate advisory arm which attracted big fees.

"They have traditionally been accounting firms doing audit assurance and taxation service, but now the great proportion of their revenue comes from their advisory and consulting services," he said.

"There is always pressure on those particular business units to to grow the business in terms of revenue."

'Cosy relationship' possible in Australia........

read more - http://www.abc.net.au/news/2018-10-05/big-...ection=business



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

Said 'Thanks' for this post: Pendragon  
 
blacksheep
post Posted: Jun 25 2018, 12:40 PM
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Banking royal commission: 'Big four' accountancy firms 'heavily conflicted, should be under inquiry spotlight'
By Europe correspondent Steve Cannane
Updated about 3 hours ago
QUOTE
Australia's "big four" accountancy firms should be put under the spotlight of the banking royal commission, according to a British investigative journalist who has written an expose on their activities overseas.

Richard Brooks said the practices and behaviour of the firms should get the same forensic treatment as the banks.

In his book, Bean Counters — The Triumph of the Accountants and How they Broke Capitalism, Brooks makes the case PricewaterhouseCoopers (PwC), KPMG, Deloitte and Ernst & Young (EY) have massive conflicts of interest because they sell consultancy services to the same companies whose accounts they are meant to be independently auditing.

"Their primary interest is not getting the numbers right, it's getting the money in for themselves," he said.

http://www.abc.net.au/news/2018-06-25/bank...ks-says/9904592



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: May 28 2018, 07:02 PM
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May 28 2018 at 2:11 PM
Updated 1 hr ago
Internal auditor reports 'diluted, suppressed and ignored'

QUOTE
Internal auditors are having their reports "diluted or suppressed" or even seeing their careers derailed when they raise red flags within large corporations.

https://www.afr.com/business/accounting/int...20180528-h10m5y



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: May 25 2018, 01:23 PM
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In Reply To: blacksheep's post @ May 18 2018, 08:50 PM

Quintis auditor Ernst & Young named in third class action
QUOTE
A third shareholder class action targeting collapsed sandalwood grower Quintis has also ensnared its auditor, Ernst & Young, which is accused of negligent conduct in signing off on the company's accounts for 2015 and 2016.

http://www.afr.com/business/agriculture/cr...20180524-h10izj



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: May 18 2018, 08:50 PM
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In Reply To: blacksheep's post @ Apr 11 2018, 10:27 PM

Just Whom Does an Auditor Really Serve?
QUOTE
Shareholders need to be the client, not company executives.

British lawmakers are pushing for a full-blown antitrust probe into the country's four big accountancy firms following the demise of U.K. construction group Carillion Plc.

The current domination of KPMG, PricewaterhouseCoopers, EY and Deloitte isn't working for shareholders. But creating more competition among the bean counters won't be enough on its own. The fundamental problem is who the client is. The thrust of reform should be on making auditors see that their client is the investor and not the company executive.


https://www.bloomberg.com/view/articles/201...or-really-serve

Hedge Funds Are the Good Guys In Carillion Debacle
QUOTE
Maybe if directors and the U.K. government had paid more attention to short-sellers, the collapse could have been avoided.

https://www.bloomberg.com/view/articles/201...rillion-debacle



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
triage
post Posted: Apr 12 2018, 08:50 AM
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In Reply To: blacksheep's post @ Apr 11 2018, 10:27 PM

Yeah nah, the auditing companies will play the odds and continue doing what they do. What are the chances of the regulators catching an auditor doing "poor work" and what are the chances of that unlucky auditor copping a maximum fine. I see the big 4 alone had revenue in Australia last year of $7b, and that some of their biggest customers here in Oz are the government departments and agencies that are supposed to be monitoring them.

https://www.macrobusiness.com.au/2018/04/ne...-parasite-born/

The core problem with auditors is that they have to sing for their supper, and if they don't please the company they are auditing then that company will look elsewhere for future audits: if that means that they look the other way when companies misbehave then that is what they will do. Or to put another way, auditors, just like any other professional, are bound to primarily service the party that is paying their fees, so of course auditors will make every effort to deliver what the client wants. Certainly with public companies at least auditors should be appointed, and paid for, by the regulator and should have fixed term non-renewable contracts.

Also regulators need to sort out the protocols for audit companies that provide other additional services. Many years ago now but I have personally seen a big 4 audit firm offer audit services for virtually nothing on the proviso that the company, a major company worth billions of dollars, also use its other services (IT, human resources, financial services etc). Just as it is dumb to allow banks to expand into financial services conglomerates I think it is dumb to have allowed auditors to mutate into broad professional services behemoths.



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"The market can stay irrational longer than you can stay solvent." John Maynard Keynes

"The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought." Rudiger Dornbush

Mozart fixes everything and Messi is a dog
 


blacksheep
post Posted: Apr 11 2018, 10:27 PM
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Seems the UK is cracking down on auditors who perform shoddy work-might be a good time for authorities here to do likewise

Auditors could face £10m fines under tougher punishments for 'poor work'

Tim Wallace
9 APRIL 2018 • 6:14PM
QUOTE
Tough new punishments are on the way for bad or dishonest auditors in an effort to crack down on shabby performance in an industry wracked by scandals.

“Seriously poor audit work” will land big four auditors with fines of £10m or more, the Financial Reporting Council said.


QUOTE
The accounting watchdog wants to improve incentives for good behaviour and show that those who perform badly do face consequences, following a series of scandals from the financial crisis onwards.

These have seen the biggest names in audit appear to give a clean bill of health to giant companies, only for the businesses to collapse shortly afterwards – yet the auditors faced no or little punishment.


https://www.telegraph.co.uk/business/2018/0...id=tmg_share_tw



--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 



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