I agree. Sloppiness is evident in ASX published accounts, let...

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jantimot

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08/10/19

17:19

Post #: 40778413
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Originally posted by All4One: ↑

The whole financial system is under suspicion from banks to government to auditors. IMO it is full of rot in all areas.

The explanation

Auditing the Auditors

The 2011–12 ASIC audit inspection report found that in 18 per cent of sampled key audit areas, the “big four” firms (Deloitte, EY, KPMG, PwC) had failed to obtain what they were supposed to — “reasonable assurance”
that the financial report as a whole was accurate and free of material misstatements. That number was up from the previous figure of 15 per cent, which Medcraft already regarded as too high.In December 2012, Medcraft told the Parliamentary Joint Committee on Corporations and Financial Services that the results were “very disappointing and frustrating”, that auditors lacked sufficient scepticism, and he wanted to see a failure rate number “substantially below 10 per cent”.That was not to be. By the time ASIC released its Audit inspection program report for 2016–17, the number had blown out to 25 per cent.

read the article @ https://aicd.companydirectors.com.au/membership/company-director-magazine/2019-back-editions/june/auditors

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I agree. Sloppiness is evident in ASX published accounts, let alone non-public companies.

A couple of years ago ago I was reviewing a non-bank lender’s accounts when it became clear that there was a $130m liabilities disclosure error in the KPMG audited accounts, nearly half the total liabilities for the organisation. I rang the company, only to find that they wouldn’t comment as they were under review by both ASIC and APRA. This was a stupid, fundamental error which would have been picked up by a second year trainee 40 years ago. Really, really basic financial accounting. If they cannot get that right, it’s amazing that the error rate is only 25%!
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