Wednesday, January 15, 2014

Hat-tip: Francine McKenna on the moral bankruptcy of the audit profession

Francine McKenna is a persistent critic of the audit profession. This post is a typical if egregious example

When you think the big four audit firms can't get any worse be prepared to be disappointed.



John

5 comments:

CrocodileChuck said...

"Does Ethics Training Change Behaviour?"

Francine could have phoned this in:

'No'. But prosecuting CXO's does!

Absalon said...

The audit profession has gotten a complete pass on its role in the financial crisis. How could companies have constructed such fragile (fraudulent) balance sheets without the auditors sending up warning flags?

A few years ago I was involved in a matter where a company's bank statements showed five times the turnover that the financial statements did. The Big Four auditor had never even questioned what turned out to be a multi-million dollar fraud.

CrocodileChuck said...

'No matter how cynical you get, its never enough' Lily Tomlin

http://www.smh.com.au/national/big-business-in-charge-of-own-tax-20140115-30vat.html#ixzz2qUwk2b14

Francine McKenna said...

I was ready to do that debate with a patch over one eye, one hand tied behind my back and a shoe on my head. Easy peezy. :)

Anonymous said...

Okay I might be a little pessimistic on human nature, but what, ultimately, any "ethics" stands on is responsibility.

Auditor, as of now, are waived of it. Ultimately.

Doubt there's any argument in that if we stop persecution of frauds, robberies or you-name-it crime, no matter how unhumane it is, it will rise.
Worse yet, if no counteraction follows, it will keep rising.

Now when was the last time auditors were held responsible for their "audits" not providing the "independent verification guarantee" it should?

Regards,
Dmitry.

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