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The ft.com article is paywalled, but the yahoo.com summary makes the auditor, BF Borgers, out to be faking each and every audit they "performed" for years, with
by bediger4000 3y ago
The ft.com article is paywalled, but the yahoo.com summary makes the auditor, BF Borgers, out to be faking each and every audit they "performed" for years, with a 100% deficiency rate. Also one of the most prolific auditors, and 80% of its customers are over the counter stocks.
This raises a couple of questions in my mind. First, don't any corporations care about the quality of an audit? I would think an audit would be useful in a number of ways, like are your internal books ok? Is any division in the company faking it? Are we inadvertantly spending more or less than we think?
Second, how did BF Borger get new customers? Do CEOs recommend shady service companies to each other?
Third, how did BF Borger retain employees? I've left jobs where I thought nothing interesting was happening, how do people stick around just to fudge documents and fake meetings?