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After having read a number of school board “audits”, and read about Enron etc, and looked beyond that to other instances, it’s clear that audits are generally w
by Scubabear68 2y ago
After having read a number of school board “audits”, and read about Enron etc, and looked beyond that to other instances, it’s clear that audits are generally worthless as a rule. The auditors are shown what they are shown and not allowed to color outside the lines.
Find a discrepancy and every damn time the auditors will say “oh, that information was not provided to us”.
It’s like if you hired a judge for your own prosecution. What judge is going to find you guilty?
See also ratings agencies in 2008.
- MegaButts 2y agoJust as a counterexample (not saying this disproves the trend), UBS auditor recently said there is something wrong at the bank. https://www.reuters.com/business/finance/ubss-auditor-issues-warning-over-banks-financial-reporting-controls-2024-2025-03-17/ https://www.reuters.com/business/finance/ubss-auditor-issues... I think this says more about how worrisome UBS is than how unreliable auditing is.
- deleted 2y ago[deleted]
- pasc1878 2y agoIn this case I would suggest that is Credit Suisse that is the problem - UBS were forced to take it over when problems were found.
- pstuart 2y agoAn audit that makes your customer look bad isn't good for repeat business.
- JoshTriplett 2y agoOn the other hand, an audit that makes your customer look good to their customers is great for repeat business. The trick is checking for things that people actually care about, rather than box-checking activities.