131–140 of 169 posts
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
This is the second ceo who started to dress like steve jobs and became a fraud.
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
The EY point is interesting. I'm not sure if it's still this way, but when I worked there, a lot of care was put on audit clients as the partner(s) signing off the work had effectively unlimited liability, and could lose pretty much all their money in a worst case scenario. Unfortunately audit work, where the company decides on their auditor, has an in-built conflict of interests. If the auditor is too harsh/rigorous…
Earlier quoted context omitted.
The EY point is interesting. I'm not sure if it's still this way, but when I worked there, a lot of care was put on audit clients as the partner(s) signing off the work had effectively unlimited liability, and could lose pretty much all their money in a worst case scenario. Unfortunately audit work, where the company decides on their auditor, has an in-built conflict of interests. If the auditor is too harsh/rigorous…
> If the auditor is too harsh/rigorous, then they risk losing the audit How is this a thing ?
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
This looks really bad for BaFin, they basically treated the Financial Times as criminals for blowing the whistle over the last few years.
It's going on, with a variety of companies, every day. The entire system is beyond corrupt. Regulators are siding with frauds instead of investigating them.
A major red flag of corporate fraud is attacking journalists and blaming "short-sellers". Have these entities ever caused the demise of a legitimate company?
Earlier quoted context omitted.
> If the auditor is too harsh/rigorous, then they risk losing the audit How is this a thing ?
Because it is an absolute race to the bottom (on price) when it comes to Big 4 audit. There is really no distinction or difference in services provided between the firms. You can practically switch from EY to one of the other three (if they don't mind excluding themselves from consulting work) overnight. Disclaimer: work for Big 4 but in tech consulting, not audit.
So there's an incentive to audit correctly.
I wonder how many companies in the world are basially built on warm words without any real value behind. I made the experience that a lot of people don't really care if a company has positive revenue streams anymore, they don't even know what a balance sheet is. They simply invest because other people do. And those other people invested because people before them did. This new style "invest billions now in a lossy st…
How can you find out about who is auditing a company?
Earlier quoted context omitted.
https://www.spiegel.de/netzwelt/web/deutschland-warum-unsere... [Translated from German] Christian Schwarz-Schilling had been Post Minister under Helmut Kohl since 1982 and launched the German mobile phone network at the end of the 1980s. His political understanding of infrastructure can be seen in a disturbing fact: Until a few hours (!) before he was sworn in as Post Minister - Schwarz-Schilling was involved in a c…
More recently, Germany's insistence to go all in the hydrogen economy has the same flair.
Earlier quoted context omitted.
Because it is an absolute race to the bottom (on price) when it comes to Big 4 audit. There is really no distinction or difference in services provided between the firms. You can practically switch from EY to one of the other three (if they don't mind excluding themselves from consulting work) overnight. Disclaimer: work for Big 4 but in tech consulting, not audit.
OTOH it was the Big 5 until Arthur Anderson gave up its license due to the Enron fraud. So there's an incentive to audit correctly.
The race-to-the-bottom/die-at-the-bottom reward structure only prevents disaster if the racers are invested for the long term. The agents in charge will have a high tolerance for that kind of risk if they hope to retire/sell before the money train jumps the tracks. I don't know if that's a hazard this industry is currently falling into, but it's a likely failure mode if nothing sufficiently enforces agents taking a long view.