Very good at all!
A post on today, which may to many seem a little boring, but I think the comment was interesting.
The regulatory system in which many companies are moving, have many faults, but one that always made me very much, is the calls "accounting controls" .
And it has become evident that the audits that have worked for banks for example, have made serious mistakes in their reports, now we all pay.
The other day I read in the Country, an article by Ignacio Arroyo Martinez (Professor of Law at the UAB and lawyer) reflecting this problem.
Expliquémoslo easy for those who do not interested in these issues (which is completely normal) can understand easily:
Juan is a company that makes the accounts each year. You all know that in the accounts of any company, reflected fairly the state of the company numbers. Through the accounts, we can see all the notes that the company made during the year.
For John, engaged to Peter, who is engaged to audit firms, that is to understand, a company dedicated to examining the accounts which John, and issues a final report after seeing the guts, (limited to detect than Juan accounting data, correspond to reality), in which ensures that what John has done throughout the year, it is true , or with some exceptions negligible.
The joke of it all is that "is John who pays Peter for this accounting audit work." I mean, to understand, that John pays Peter a huge amount of money many cases, for this report, and the question is: Did Peter
will be fair enough to not be influenced in their verdict?
For John, engaged to Peter, who is engaged to audit firms, that is to understand, a company dedicated to examining the accounts which John, and issues a final report after seeing the guts, (limited to detect than Juan accounting data, correspond to reality), in which ensures that what John has done throughout the year, it is true , or with some exceptions negligible.
The joke of it all is that "is John who pays Peter for this accounting audit work." I mean, to understand, that John pays Peter a huge amount of money many cases, for this report, and the question is: Did Peter
will be fair enough to not be influenced in their verdict?
If Peter speaks ill of the accounts of John in his report, you hire John to Peter the next year to return to audit it negatively?
Are competitive and independent auditors?
Are competitive and independent auditors?
Will you bite the hand that feeds them?
In many cases, companies have shown after pressing financial problems and fraudulent financial reporting, the previous audit report had been clean, unqualified . On these occasions, raise questions about the manner in which auditors have carried out the audit and working methods used to reach conclusions on published financial information that differ from reality.
In Germany and France, the powers of this council are divided between the and administration, and Italy, the control is delegated to a trade union body).
Four large firms in Spain are shared 90% of the audit market. what to do for the control of the accounting accuracy in expert hands this truly fair and competitive?
are several solutions proposed the writer of this joke:
1.Create auditors paid by the state officials. 2.What
a judge or the Registrar of Companies is to appoint the auditor, preventing it from being audited desiged by the employer. 3.Rotación
mandatory for auditors, prohibiting the repetition of the same company every 7 years.
Fortunately, some of these proposals are just echoing THE GREEN BOOK, a book which collects the audit market reform in Europe.
But what must be understood is that the role of auditor is due to their profession, to his knowledge, no who was appointed. has to be impartial and independent.
Can you imagine a judicial system where judges are paid and hired by the defendant?
Anyway, hopefully this whole crisis, causes changes so that companies do not commit infractions, and reflect the true picture in a system that has been in evidence.
Greetings to all and Happy Twelfth Night! Janus
Good 
0 comments:
Post a Comment