Comments on: If PwC can't work it out then how do they audit?

By: My del.icio.us bookmarks for September 19th | called2account

My del.icio.us bookmarks for September 19th | called2account — Sat, 20 Sep 2008 04:25:41 +0000

[...] If PwC can’t work it out then how do they audit? | AccMan – Short, simple, and excellent analysis by Dennis Howlett [...]

By: Krupo

Krupo — Fri, 19 Sep 2008 06:15:24 +0000

One of my friends pointed out the simple fact that the US allowed them to go from a 12:1 leverage ratio to 30:1 and later 40:1 is a pretty straightforward explanation for what the hell went wrong.

The entire American financial system went wacky and people either ignored it or cashed out if they knew about it.

By: Dennis Howlett

Dennis Howlett — Fri, 19 Sep 2008 03:56:51 +0000

It's only an opinion but government can and should step in. BUT – it needs truly independent advice to get fresh regulation and controls in place that are effective. That's anathema to many but which would you prefer? Chaos or order>

By: Daniel Young

Daniel Young — Fri, 19 Sep 2008 02:34:05 +0000

At least with corporate fraud, individuals can be held accountable for inventing and inflating fantasy wealth and profit.

Who can hold an entire industry or system to account?

I am not counting on the accounting profession or the regulators – both culpable.

By: Francine McKenna

Francine McKenna — Thu, 18 Sep 2008 14:29:58 +0000

My thoughts exactly Dennis. The auditors are always ten steps behind, shuffling along with their heads down.

Have you heard that joke? “What’s the difference between an external auditor and an internal auditor? An external auditor looks down at your shoes while talking. An internal auditor looks down at his own shoes. “