3 ms·
Why would a hedge fund hire auditors who don't have any idea what they are doing?
by jsprogrammer 11y ago
Why would a hedge fund hire auditors who don't have any idea what they are doing?
- freehunter 11y agoWelcome to the world of auditing. You hire an auditing company that knows a lot, and they send you their newbies.
- harry8 11y agoAnd you manipulate them by hiring the same auditing firm for consulting and ramp up the pressure when it comes time for them to give an unqualified opinion. Those newbies and the audit partner will be crushed by the avarice of the other partners selling consulting services. Work they would not get if they were not the audit firm. Whether it's legal or not it is corruption and makes a good case for regulation. If you audit a firm, the audit firm and its related entities cannot sell anything else to that firm and its related entities. Is it likely? Well who would lobby for it? Who would lobby against it? How much are they willing to spend. Democracy.
- owenversteeg 11y agoThere are four audit companies -- PwC, Deloitte, EY, and KPMG -- that together audit 99% of companies in the FTSE 100. If you don't hire them, you get looked at funny. https://en.wikipedia.org/wiki/Big_Four_%28audit_firms%29 https://en.wikipedia.org/wiki/Big_Four_%28audit_firms%29
- lquist 11y agoThis was a large hedge fund and the auditors were name brand auditors. They still had no idea what they were doing :/