Accountants aren’t doing their job. There is no other way of putting it. When you can’t look at a balance sheet and tell if a company is adequately capitalized, instead you have to wait for the friggin’ clueless federal government to tell you the results of their mystery stress test. This is a joke.
KJH Wrote: ------------------------------------------------------- > Accountants aren’t doing their job. There is no > other way of putting it. When you can’t look at a > balance sheet and tell if a company is adequately > capitalized, instead you have to wait for the > friggin’ clueless federal government to tell you > the results of their mystery stress test. This is > a joke. It’s more than just accountants… the assumptions risk managers were using were obviously flawed. Many have no clue as to the real value of assets held on their balance sheets. Saying it’s the fault of accountants is like saying murders are caused by the guy that takes photos of the bodies after the fact.
Accountants job IS to tell the story of the biz. They’re not doing it. Accounting is more than just plugging in numbers.
KJH Wrote: ------------------------------------------------------- > Accountants job IS to tell the story of the biz. > They’re not doing it. Accounting is more than > just plugging in numbers. So you’re trying to tell me that accountants are building the models to value these assets… yeah f’n right.
Accountants look at materiality and they look for breaks against backup - very easy to fudge it and make it look legit - rubbish in, rubbish out!
KarenC Wrote: ------------------------------------------------------- > Accountants look at materiality and they look for > breaks against backup - very easy to fudge it and > make it look legit - rubbish in, rubbish out! what she said.
KarenC Wrote: ------------------------------------------------------- > Accountants look at materiality and they look for > breaks against backup - very easy to fudge it and > make it look legit - rubbish in, rubbish out! Right… so if the backup they are provided is a model based upon terrible assumptions as long as they agree they aren’t going to ask questions. Risk managers look like the culprits. Not the KarenC’s of the world.
Auditors in my experience dont ask me any questions other than why the counterparty backup does not exactly tie to the numerous pi$$ing reports I have to send to them every year - they dont care if the risk is off the charts, they dont care if there’s no capital to back it up…all they care about is why one report shows a position of 1,500,000 and the other shows 1,499,999!! Who says I’m an accountant - do I sound like i like auditors?? 
Auditors are idiots. They can’t comprehend what is going on business wise, they just check for a tie out. BTW, if you are stealing tons of money in a Ponzi just make sure it ties and it is all good.