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audit

This newspaper has long argued that items such as goodwill and brand values should be excluded from balance sheets as they are nebulous, cannot be accurately calculated and give a false value to companies. So, we argue, does valuing companies on "revenue" and artificial straight line depreciation saying that fixed assets and profit are the only true measures of a company's value to shareholders. Once again, it is reported by a market regulator, a company is "writing down" goodwill. It's time for a radical rethink on how companies, especially listed companies, are valued.

CoNet Section: 

The Australian Securities and Investment Commission (ASIC) conducted inspections at Australia's six largest audit firms and found that they performed a little better than the industry average but even so, a fifth of them lacked material information.

CoNet Section: 

In the wider world of financial services, there's a tendency to forget that there are regulators for other areas of commerce, too. In the UK, in accounting, the last stop for action relating to accounting and audit misconduct is the Financial Reporting Council. It's one of those bodies that replaces gravitas with slogans on its website (which is "flashy" but doesn't work properly) but when it gets its teeth into a case, it acts as a proper regulator. It levies only small fines but it's paying more and more attention to the big boys.

CoNet Section: 

Australia's superannuation scheme is popularly known as "super" and it has nothing to do with Reggie Perrin although, given the frequent problems with it, it might be the successor to Sunshine Des serts. Now an auditor of self-managed schemes has been banned after it was determined that he had "breached fundamental independence and audit requirements."

BIScom Subsection: 
CoNet Administrator

B Ramalinga Raju: This is a beauty parade for a global audit firm to cover Satyam's audit requirements. Are you ready to bid?

Big Four: Yes, Yes. Just give us the chance.

 


 

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