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AUDITORS
blacksheep
post Posted: Oct 29 2019, 02:41 PM
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In Reply To: blacksheep's post @ Oct 29 2019, 02:38 PM

EY: Gold, drug money and a major auditor's 'cover-up'
By Andy Verity and Tim Robinson
BBC Panorama
QUOTE
A major accountancy firm covered up evidence of smuggling by an organised crime gang that was laundering British drug money, an investigation has revealed.

EY failed to report suspicious activity at one of the world's largest gold refineries and then altered a compliance report to hide the crime.

BBC Panorama found the gang laundered money by selling 3.6 tonnes of gold to the Kaloti refinery in Dubai.

Both EY and Kaloti deny any wrongdoing.


QUOTE
Smuggled gold
The auditors discovered that Kaloti had paid out a total of $5.2bn (£4bn) in cash in 2012, but EY didn't report suspicious activity to the money laundering authorities.

EY also helped to cover up a crime - the export to Dubai of gold bars that had been disguised as silver to avoid export limits on gold.

The audit team had been shown what appeared to be bars of silver from Morocco, but scratching the surface revealed they were really gold bars coated silver.


read more - https://www.bbc.com/news/uk-50194681




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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: Oct 29 2019, 02:38 PM
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Auditors told to swallow some medicine in wake of bank scandals
AM By senior business correspondent Peter Ryan

Key points:
QUOTE
The auditing profession concedes it must address the issue of independence in the wake of a series of banking scandals
Auditors avoided scrutiny at the banking royal commission despite evidence they were part of the problem
A parliamentary inquiry is looking at banning the big accountancy firms doing both consultancy and auditing work for clients


QUOTE
Questions remain
The Australian Securities & Investments Commission (ASIC) has repeatedly questioned the quality of corporate audits, and former chairman Greg Medcraft warned "another Enron" was a key risk.

Former ASIC investigator Glen Unicomb, who led the probe into failed insurance giant HIH, told the ABC last year auditing firms needed to face a royal commission to prove their independence.
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The joint committee on corporations and financial services said earlier this year it had been, "concerned for some years about audit quality" and cultural problems which were "deep-rooted".

The committee expressed concern the "big four" firms had become corporate insiders and that their role as "independent outsiders scrutinising the accounts of major corporations" was being compromised.

In a statement, CAANZ said the submission was "a roadmap to the future" on new ways to improve the confidence, relevance and quality of audits.

International regulators face rising pressure from shareholders to consider tighter auditing and disclosure requirements to warn investors about companies at risk of collapse.

In Britain, the Financial Reporting Council last month said auditors would have to more "robustly challenge" company director statements about why their corporations were unlikely to fold after the collapse of industrial giant Carillion.


read more - https://www.abc.net.au/news/2019-10-29/audi...ection=business



--------------------
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: Aug 6 2019, 11:34 AM
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In Reply To: blacksheep's post @ Aug 3 2019, 11:57 AM

Labor shocks big four with inquiry they never saw coming
QUOTE
The joint committee, which comprises MPs from the Coalition, Labor and Greens, flagged concern about audit quality in Australia at the start of the year, with a report stating that a "serious review" was needed to examine "deep-rooted problems in the audit market".

read more - The joint committee, which comprises MPs from the Coalition, Labor and Greens, flagged concern about audit quality in Australia at the start of the year, with a report stating that a "serious review" was needed to examine "deep-rooted problems in the audit market".



--------------------
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: Aug 3 2019, 11:57 AM
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Posts: 6,570
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In Reply To: blacksheep's post @ Aug 3 2019, 11:45 AM

OPINION
Time's up for Henry but also the billion-dollar audit club

extract
QUOTE
Medcraft said one of the issues was the big four auditing firms cut their audit fees and subsidise them with the more profitable consultancy work.

In other words, auditing has become a loss leader, junior people are working in the jobs and the real money is made in consulting including pumping out "independent reports".


QUOTE
The reality surely is that anyone on the payroll isn’t independent. That should include an external auditor which, like EY, has been checking the books for 13 years and earning well over $20 million a year from the client.

It all just casts more doubt over the declarations of openness and accountability from the banks that have followed the royal commission.


https://www.smh.com.au/business/banking-and...802-p52dak.html



--------------------
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: triage  
 
blacksheep
post Posted: Aug 3 2019, 11:45 AM
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In Reply To: blacksheep's post @ Oct 5 2018, 01:17 PM

Long time coming rolleyes.gif

Call for rules shake-up to avoid 'Enron style' collapses in Australia

QUOTE
The former chief of the corporate watchdog Greg Medcraft has warned of Enron-style corporate collapses without radical reform to the way banks are audited, saying an independent body should set fees and select auditors to avoid conflicts of interest


QUOTE
A trove of leaked documents supplied by a whistleblower included a proposal letter written by EY pitching to provide early communication of findings based on a "no surprises approach".

The leaked documents also included confidential private observations by EY consultants that were far blunter than the phrasing used in the draft report. APRA was sent a copy of the final report.

As the big banks and audit firms defended their policies to safeguard independence, Mr Medcraft said the best way to fix the problems around conflicts was to establish an independent body to set the audit fees and chose the auditor.

Declining quality of auditing in Australia and globally could lead to a black swan event, such as an Enron-style collapse.
Former corporate regulator Greg Medcraft

He said there needed to be a three strikes rule for auditors that were assessed to be performing poorly and companies should have to change their audit firm every seven years.

Mr Medcraft, who had worked as an auditor earlier in his career, said the big accounting firms were an influential oligopoly.

"They control the auditing standards and they are very powerful lobbyists," he said.

"If you want independence you need to ask who is paying the bill?" he said. "He who pays is master or mistress of the servant so there needs to be a change in culture on that issue."


read more - https://www.smh.com.au/business/banking-and...52db7.html?btis



--------------------
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: triage  
 
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



--------------------
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  
 

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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



--------------------
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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Posts: 6,570
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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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Posts: 6,570
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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
 
 


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