Interesting Articles...

[churnbabychurn]

I used to work for a company that was audited by one of the big 5 (back in the day).

I can tell you first hand that the auditors job is NOT  to look for, or detect fraud. An auditor sample checks reports, asking for backup information. Give them a 1000 page register with all invoices on the A/R and they will never notice if the bottom line on the report adds up to the details (as long as there are thousands of lines of details per customer).

One of the first thing auditors have to check off is mathematical accuracy of the reports. - not much fraud happening there anyway.
Valuation issues is where it happens much more often.

[ExGingi]

One of the first thing auditors have to check off is mathematical accuracy of the reports. - not much fraud happening there anyway.
Valuation issues is where it happens much more often.

I can only attest to the specific case I have seen with my own eyes.

Eventually company collapsed and owners served time behind bars. But for many years things went on with the auditors signing off.

[yuneeq]

I know nothing about accounting, but what the heck is the point of an audit if it's not looking out for fraud?
Isn't an audit all about showing that investors can trust a company's numbers?

[MarkS]

I know nothing about accounting, but what the heck is the point of an audit if it's not looking out for fraud?
Isn't an audit all about showing that investors can trust a company's numbers?

The objective of an audit is to express an opinion that the financial statements are free of material misstatement. We do certain procedures to try to look for fraud but the main focus is on the financial accuracy of the financial data. If there is a large scale fraud it would be detected through the financial data. If there is a small scale fraud it is immaterial and who cares.

If a guy is stealing pencils from the stock room who cares. If a guy is stealing $1,000 from a $100,000 company who cares.

If there is a material fraud (something that investors would care about) it would most likely get caught through the financial data.

[churnbabychurn]

I know nothing about accounting, but what the heck is the point of an audit if it's not looking out for fraud?
Isn't an audit all about showing that investors can trust a company's numbers?

The objective of an audit is to express an opinion that the financial statements are free of material misstatement. We do certain procedures to try to look for fraud but the main focus is on the financial accuracy of the financial data. If there is a large scale fraud it would be detected through the financial data. If there is a small scale fraud it is immaterial and who cares.

If a guy is stealing pencils from the stock room who cares. If a guy is stealing $1,000 from a $100,000 company who cares.

If there is a material fraud (something that investors would care about) it would most likely get caught through the financial data.

Auditors must document their discussions on assessment of fraud risk. Then they must document controls in place that address these risk assessments.
Auditors must be independent. And must utilize professional skepticism throughout the audit.
Auditors are trained to identify and address fraud risks etc etc.


Obviously it is at the core of the audit.

I think what @marks is saying, is that auditors do NOT guarantee the accuracy and freedom of fraud and error in the FS.  they merely express an opinion that they are reasonably sure, based on the procedures performed according to GAAS, that the financials prepared by management are good.....

[ExGingi]

https://www.bloomberg.com/news/features/2017-01-05/is-emirates-airline-running-out-of-sky

[churnbabychurn]

This didn't seem to make the headlines here... http://www.theyeshivaworld.com/news/headlines-breaking-stories/509555/petira-of-hagaon-harav-moshe-shapiro-zatzal.html

[hvaces42]

http://rabbiavishafran.com/i-abstain-from-the-outrage/

[Dan]

https://www.buzzfeed.com/davidmack/martin-shkreli-suspended-from-twitter
(Language)

[yuneeq]

https://www.buzzfeed.com/davidmack/martin-shkreli-suspended-from-twitter
(Language)

Twitter once again acting out anytime a snowflake liberal is offended.
Millions of twitter profiles have pictures of celebrities as their profile pic and profess their love to them.

I didn't see anything that constitutes "harassment" at all.

[Ergel]

http://www.theyeshivaworld.com/news/headlines-breaking-stories/509671/10-jewish-mlb-players-visit-iaf-base-with-fidf-ahead-of-world-baseball-classic.html

[JTZ]

I didn't see anything that constitutes "harassment" at all.

How about a nutcase stalker?

[yuneeq]

How about a nutcase stalker?

There's a very easy to find "block" button that she could've used.
Also it's not stalking when you follow a popular figure online. Or you're saying that we're all stalkers?

[Ergel]

How about a nutcase stalker?

+1
And it's different if you're some random nobody online vs. Martin Shrekli

[JTZ]

Or you're saying that we're all stalkers?

What I am saying he seems obsessed with her. That is not good.