Comments on: Are ‘Big Four’ accountants a waste of space? http://www.ianfraser.org/the-uks-cherished-model-of-corporate-governance-has-come-unstuck/ Journalist, Blogger, Broadcaster Wed, 08 Feb 2012 13:37:05 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: softmutt http://www.ianfraser.org/the-uks-cherished-model-of-corporate-governance-has-come-unstuck/comment-page-1/#comment-47801 softmutt Thu, 22 Apr 2010 06:44:48 +0000 http://89.145.88.120/~ianfrase/?p=794#comment-47801 In short. Accountants see what they want to see, hear what they want to hear & then sign off with a caveat absolving them of all sin. So what's new? I wasn't surprised. Sorry to be so cynical. In short. Accountants see what they want to see, hear what they want to hear & then sign off with a caveat absolving them of all sin.
So what’s new? I wasn’t surprised.
Sorry to be so cynical.

]]> By: Ian Fraser - Business and Financial Journalist Ian Fraser » Blog Archive » Lehman examiner’s report: London was the ‘Guantanemo Bay’ of finance http://www.ianfraser.org/the-uks-cherished-model-of-corporate-governance-has-come-unstuck/comment-page-1/#comment-42028 Ian Fraser - Business and Financial Journalist Ian Fraser » Blog Archive » Lehman examiner’s report: London was the ‘Guantanemo Bay’ of finance Sat, 13 Mar 2010 21:24:36 +0000 http://89.145.88.120/~ianfrase/?p=794#comment-42028 [...] The same applied to its use of Ernst & Young as UK auditors. The “Big Four” accountancy firm was was only too happy to lend its imprimatur to Lehman’s sleight of hand. No questions asked as long as the fees — $31bn in 2007 — were paid (for further analysis of the utter uselessness and seeming corruption of the ‘Big Four’ audit firms click here). [...] [...] The same applied to its use of Ernst & Young as UK auditors. The “Big Four” accountancy firm was was only too happy to lend its imprimatur to Lehman’s sleight of hand. No questions asked as long as the fees — $31bn in 2007 — were paid (for further analysis of the utter uselessness and seeming corruption of the ‘Big Four’ audit firms click here). [...]

]]> By: Peter Smith http://www.ianfraser.org/the-uks-cherished-model-of-corporate-governance-has-come-unstuck/comment-page-1/#comment-20972 Peter Smith Wed, 15 Apr 2009 20:00:53 +0000 http://89.145.88.120/~ianfrase/?p=794#comment-20972 This is a superb blog post which gets to the heart of what's gone wrong with the erstwile 'profession' of accountancy. The rear-view mirror approach and the inability of the big four firms to challenge what they are told by their customers' boards of directors confirms that this is a profession is past its sell by date. As Prem Sikka puts it, the accountants basically "do not want to upset their clients.” I agree with Prem when he says: "Our system has really fallen apart and the underlying idea that commercialised accounting firms -- one bunch of commercial entrepreneurs -- can somehow regulate another bunch of commercial entrepreneurs -- that is company directors -- that model is broken, it cannot work." He is also probably right is saying that 'Big Four' accounting firms are unfit to conduct public watchdog functions, especially given what firms like KPMG have been up to. To me, it is astonishing that despite their current reputations the big four firms are still so well respected in government and commercial circles. Their colonisation of government and the civil service is the nub of the problem. This is a superb blog post which gets to the heart of what’s gone wrong with the erstwile ‘profession’ of accountancy.

The rear-view mirror approach and the inability of the big four firms to challenge what they are told by their customers’ boards of directors confirms that this is a profession is past its sell by date. As Prem Sikka puts it, the accountants basically “do not want to upset their clients.”

I agree with Prem when he says: “Our system has really fallen apart and the underlying idea that commercialised accounting firms — one bunch of commercial entrepreneurs — can somehow regulate another bunch of commercial entrepreneurs — that is company directors — that model is broken, it cannot work.”

He is also probably right is saying that ‘Big Four’ accounting firms are unfit to conduct public watchdog functions, especially given what firms like KPMG have been up to.

To me, it is astonishing that despite their current reputations the big four firms are still so well respected in government and commercial circles. Their colonisation of government and the civil service is the nub of the problem.

]]> By: Davinder Kohli http://www.ianfraser.org/the-uks-cherished-model-of-corporate-governance-has-come-unstuck/comment-page-1/#comment-20809 Davinder Kohli Sun, 29 Mar 2009 23:18:20 +0000 http://89.145.88.120/~ianfrase/?p=794#comment-20809 The most revealing thing is that the profession could not put forward any worthwhile idea. Thought leadership - what leadership? The most revealing thing is that the profession could not put forward any worthwhile idea. Thought leadership – what leadership?

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