No worries, ChatGPT will eleminate ALL audit business in year or two anyways.
EY gets banned from new audit business in Germany
61–70 of 303 posts
Re: EY gets banned from new audit business in Germany
#62Earlier quoted context omitted.
> Really? 5 years? That seems really harsh. Is it all business failures or does it have to be due to mismanagement? There’s a big difference between bankruptcy and business failure. Plenty of businesses fail without entering bankruptcy, they’re wound down responsibly and their creditors are repaid in full. If a company fails due to bankruptcy, then it means that people who lent money to that business are out of pocke…
The counterpoint is what's the point of reducing losses on bankruptcy if it makes the entire business climate worse? By trying to protect creditors you just make everyone poorer.
This is an ideological take, and an American one at that. Not necessarily a fact.
Re: EY gets banned from new audit business in Germany
#63Earlier quoted context omitted.
Really? 5 years? That seems really harsh. Is it all business failures or does it have to be due to mismanagement? I've heard the climate is very hostile to businesses in Germany; my sister in law was trying to sell art on etsy and apparently she had to get a business license to do so in Germany. She's now back in the USA where she can just sell stuff online and the only thing she needs to do is file her taxes correct…
You know, all regulations only hurt small sellers, people at the “top” always get away from all the crap they are directly responsible for, no matter they are hurting their own business or the society as a whole
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Re: EY gets banned from new audit business in Germany
#64And then there is also this https://www.ft.com/content/5e6f15ce-9eda-4b04-883d-686617020... -- cheating on ethics exams by EY. It's all very funny that the whole system is built on assumption where the supposedly knowledgeable, ethical experts audit companies, but in reality, it nowhere close to that.
if only this were limited to ethics and compliance. expertise is a virtue in modern society. signaling it well is often easier and more successful than developing and maintaining it. damn lucrative, too. this is why we can’t have nice things.
It starts with interviews which select you based on how well you speak instead of what you speak.
Re: EY gets banned from new audit business in Germany
#65Earlier quoted context omitted.
You know, all regulations only hurt small sellers, people at the “top” always get away from all the crap they are directly responsible for, no matter they are hurting their own business or the society as a whole
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Don't want to sway away from the discussion, but it's probably the first time for ages I'm called a libertarian.
Re: EY gets banned from new audit business in Germany
#66> Auditors insist that their services cannot be treated as a guarantee that accounts are truthful, and note that sophisticated frauds are by their nature difficult to spot. As someone who knows nothing about this area, I don't understand why audits won't always detect fraud. I would naively assume that auditors have access to all financial accounts and records of cash flows and they make sure they all add up and are…
So, Wirecard claimed to make huge profits. Now, the auditors would expect to see a pile of cash in the accounts. However, Wirecard claimed to expand rapidly by purchasing other companies in Asia. Those, then, booked most of the "profits" and were the assets on the book. Wirecard produced bank statements from the Philippines claiming that they had $2bn cash sitting there. So, to the auditor, the numbers added up, and…
Which, to be clear, is a failure of the auditor. We don't need auditors to make sure the numbers add up; the whole point of double-entry bookkeeping is "the numbers always add up".
Re: EY gets banned from new audit business in Germany
#67Earlier quoted context omitted.
Really? 5 years? That seems really harsh. Is it all business failures or does it have to be due to mismanagement? I've heard the climate is very hostile to businesses in Germany; my sister in law was trying to sell art on etsy and apparently she had to get a business license to do so in Germany. She's now back in the USA where she can just sell stuff online and the only thing she needs to do is file her taxes correct…
> Really? 5 years? That seems really harsh. Is it all business failures or does it have to be due to mismanagement? There’s a big difference between bankruptcy and business failure. Plenty of businesses fail without entering bankruptcy, they’re wound down responsibly and their creditors are repaid in full. If a company fails due to bankruptcy, then it means that people who lent money to that business are out of pocke…
Is it possible to have declared bankruptcy with no creditors? Can you just spend all of your own money down to zero? Would you still be banned due to losing only your own money?
Re: EY gets banned from new audit business in Germany
#68Earlier quoted context omitted.
You know, all regulations only hurt small sellers, people at the “top” always get away from all the crap they are directly responsible for, no matter they are hurting their own business or the society as a whole
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Digging into his post history to avoid refuting his point (which is overstated) is ... not appropriate? great?
I can pretty easily agree with a weaker version of his statement: regulations have a disproportionate impact on small entities. They're expensive to comply with, and small entities tend not to have access to the exotic legal tricks and arms-length interaction with regulations that can make them much less effective.
Re: EY gets banned from new audit business in Germany
#69Earlier quoted context omitted.
You know, all regulations only hurt small sellers, people at the “top” always get away from all the crap they are directly responsible for, no matter they are hurting their own business or the society as a whole
It's the wrong take-away to say all regulations only hurt small sellers. Do you want to give up regulations on child labor, or worker safety, or foods and drugs? If not, how come, considering it all hurts only small sellers? The problem isn't the concept of regulation, but the follow-through on loopholes. By doing away with regulations you'll decrease quality of life for most people. Instead we have to find ways to r…
I don't think small sellers have anything to do with child labour. And since you mentioned loopholes, it is always the big players who get away with loopholes that small business owners do not
Re: EY gets banned from new audit business in Germany
#70> Auditors insist that their services cannot be treated as a guarantee that accounts are truthful, and note that sophisticated frauds are by their nature difficult to spot. As someone who knows nothing about this area, I don't understand why audits won't always detect fraud. I would naively assume that auditors have access to all financial accounts and records of cash flows and they make sure they all add up and are…
There are different types of audit.
I expect that EY does not have access to numbers and any account information. You give away as least information as you can because you cannot just trust auditing team from some 3rd party not to use that data in collusion with your competitors.
What I expect they do have access to is documentation for procedures and processes. They audit for example if all procedures are written down and check proofs for procedures that were done by employees.
So it is like you have to clean the toilet and you have procedure that whoever cleans the toilet signs list. Every end of the shift manager checks the list and checks toilet if it is clean.
Fun part is having signed list for a day does not tell you that for half of the shift employee was only signing the list but did not do any cleaning and you might have dozens of customers seeing how terrible dirty toilet was.