Channel Register

Comments on: Satyam rushes into arms of new auditors

How do auditors work? 

By Anonymous Coward Posted Thursday 15th January 2009 08:11 GMT

Black Helicopters

All companies have to have outside auditors - and yet it seems from high profile cases that this provides very little protection against either creative accounting (?Emron) or fraud (Satyam).

Why do different accountants - first Anderson and now KPWH not find the gross inaccuracies?

*Are* accountants VFM and FFP?

from Reg reader Rose Humphrey 

By john oates Posted Friday 16th January 2009 11:33 GMT

(Written by Reg staff.)

Pedantry (you may wish to correct the article) from a chartered accountant:

- Auditors do *not* produce accounts for a company, they merely certify them as being a true and fair representation (or whatever the approved wording is, as it varies from country to country, as well as depending on the size and type of organisation audited) of the company's financial situation, based on the information available to them at date of certification. Since the poor buggers (I mean the people that actually do the donkeywork, not the bigwigs) are inevitably overworked, underpaid (the company being audited hires the auditors and fixes the budget, spot the conflict of interest), hated and lied to by just about everyone they speak with - IT professionals may recognise the symptoms - yes, stuff gets past them, especially as the tests are by necessity only samples.

- Accountants produce the financial reports certified by auditors. They may not be the same people, or even the same firm; this rule is generally applied by the Big whatever's-left-of-them (was 10, which shrank to 8 over my year's postgrad course). 3 now, isn't it?

Internal trading issue during banned period 

By Anonymous Coward Posted Monday 19th January 2009 17:26 GMT

Insider trading details and nos shows that all Sr. leaders are fully aware of the situation and made money even though they have warned the employees about the trading during Q3 result period.

This is a serious integrity issue and the sr.leaders should be sacked from the organization and govt should recover the money and give to share holders as divident. They infact made fool of investors.

Regards,

A satyamite