Making SGH Great Again, page-40

I'm not really sure if class actions are good or bad but i don't believe relaxing the disclosure laws will keep Ceo's or Cfo's etc more honest.  If they think they can get away with more they probably will is my best guess.  I would have also thought they are very lax anyway, the SGH insurance was minimal and no-one got locked up.  I would suggest the idea is or should be to make the CEO's or CFO's disclose what they should when they should, i don't see why any excuses are valid when they get paid ridiculous sums of money to make sure the market is always fully informed in a timely manner and it's presentations and accounts are a fair and reasonable account of reality.  The reason that the insurance is rising is because more and more cases of sub par disclosure is being found and thus a claim can be made.  As it stands or seems to a director can seem to ignore disclosure rules, suffer no accountability or penalties or punishment and pass the buck to the insurance company.  How can this be right??  It's as if they can lie through their teeth to the market without any worries because the insurance company takes the rap.  It's a ridiculous way of carrying on.

I think non-disclosure by Directors and management is a shameful thing, one of the worst things they could do to investors and the market yet theres no penalties.....I personally would throw the buggers in the slammer for non-disclosure because they completely wreck some peoples lives and destroy market confidence. 

Auditors and them Big4 arn't like they use to be either as far as i can tell, when my old man was patiently trying to educate me (or maybe not so patiently lol) with accounts etc he would say they shouldn't be doing things like this, these ratios are out of order, i wouldn't do accounts like this...... blinking crooks everywhere in Oz he reckoned.  I remember him telling me he was auditing a big bank back in the 60's in the US for Deloites and asked his boss how much do i put in the books for the value of this boat the bank owns, its worth $1 mil if we sold it at market price but is insured for $30 mil.... His Boss said put the $30 mil number down, he also thought the banks were basically bust back then too........ i personally would never be able to sleep if i had shares in a bank, its as if as long as they can meet their daily outgoings they are allowed to just keep on going, surely one day it will end badly but i guess if they can print money out of fresh air like in the GFC theres no problem .  It's as if without perpetual growth they wouldn't be able to stand on their own two feet which is probably like a lot of governments these days and the love for immigration.
However these days it seems accountancy standards have somewhat slipped and is not what it use to be imo, world wide, not just Oz.
Heres an article about the topic, a good read imo with a lot of truth.
https://www.theguardian.com/news/2018/may/29/the-financial-scandal-no-one-is-talking-about-big-four-accountancy-firms

Heres EY starting to think that maybe they could do a better job on auditing................I say...... No sh$t Sherlock!  I hope you didn't get paid a million bucks to work that out!   However he probably did.
Heres todays WSJ article although the link is paywalled anyone interested might be able to find the content elsewhere but all in all this seems like a step in the right direction.  I have also linked an EY article and links on the subject.
https://www.wsj.com/articles/ernst-young-to-form-independent-panel-to-help-improve-audits-11548239400

https://www.ey.com/us/en/services/assurance/ey-our-commitment-to-audit-quality-2018-commitment-to-audit-quality