Chapter 1567: Audit storm

Five companies have become four. In this way, at least 10 billion cakes each year, the other four should take off, especially KPMG. The second child committed suicide. In this way, your position will not be more stable. Up.
After thinking too much, the stock prices of the other four companies have not risen, and there are some signs of collapse.
Nima, it's just an audit. To put it bluntly, this is basically a service industry. Honesty, this is the most important trait.
"Why did it fall apart so quickly, without struggling?
By the way, what about Joseph Bellardino, something happened to the old guy, right? "
"Boss, his situation is different. Actually, I just figured out that Arthur Andersen is somewhat like a law firm. You don't think their total number may be close to 100,000, but the so-called core personnel are very few. "
"Fuck, can you still play like this? Let me say, this is not much different from Amway!
Hey, if you need some better people. "
"Yes, boss, you can make a move, I guess, the other companies may have already started, and it's just a change of brand. Who cares about the company's rise."
William White was a little bit dumbfounded. As far as he knew, Harvey Pitt was dismissed because of improper handling of this matter. However, in William White's opinion, the treatment was actually pretty good.
It’s just a pity that you can just think about the so-called punishment.
No wonder, it's no wonder that Xiao Busu didn't say any nonsense about arranging the population. It seems that this is also an expert who is giving him advice.
But ah, did they tell you that Enron is just a trivial matter, you have survived 9/11, what is this little turmoil?
Otherwise, Eagle Sauce is very sad. After 9/11, the stock price of the United States has actually been hovering. I dare not say that there is investment value. At the very least, there is really not much risk in it.
So, a lot of bottom hunters are tragedy again. It's okay if you don't use leverage. If you use this stuff, your end will basically be a liquidation.
William White doesn't really care if anyone goes bankrupt or if anyone goes bankrupt. What he cared about was that the atmosphere on Wall Street suddenly became very strange.
"Punishment? It's like a joke." Paul Walker was very angry, and he had told Harvey Pitt about the result now.
Do you think that group of guys will be punished?
You are too young and naive. Have you seen it? Only the shareholders and investors are unlucky.
Bastard, it's totally useless, don't talk about it, and opened a very bad head.
"This is not the worst. It is a miracle that nearly 100,000 people are unemployed at one time. I have heard that many bigwigs said that Harvey Pitt is really not suitable to stay in that position.
Overcorrected paranoid, in short, what is hard to hear.
To say that this guy is sad enough, why did he get into such an embarrassing situation? "
"Oh, overkill? Believe me Ellen, they are brewing a bigger tragedy." As an old fox, Paul Walker quickly figured out the truth. The reason why Arthur Andersen went bankrupt was because the Securities Regulatory Commission did not allow him to continue contracts with commercial users.
Well, if he changes time, he will definitely worship.
But now? Just two fools!
Selected by Fortune Magazine as the most innovative company in the United States, it has fallen. All the words of praise now sound more like a joke.
In more than a month, Enron's stock price fell freely from nearly $40 to $4.
And Andersen?
When Enron was founded in 1985, it audited for it. Half of Enron's directors have direct or indirect connections with Arthur Andersen. Even the chief accountant and chief financial officer are from Arthur Andersen. Half a month after the outbreak of the Enron case, Arthur Andersen destroyed thousands of pages of Enron documents.
Severe punishment laws are actually necessary, but for Enron, it may be more tragic, but Andersen may not be necessary. The company has gone bankrupt, and the shareholders have been on the street, but those who initiated it. Looks like there are too many punishments, right?
"Allen, they are brewing a new tragedy. In order to gain more benefits, no one cares about breaking the law. If the son's law just loses his job, it doesn't matter."
Greenspan agreed with Paul Volcker's concerns, but what about it? Are you planning to produce any other moths? Or do you have the guts to uncover this scar?
Let’s put it this way, the Securities and Exchange Commission has investigated and dealt with more than a number of cases where employees or their partners participated in shares or worked in companies audited by PricewaterhouseCoopers. In January this year, KPMG had invested in a company. The audited fund was named and criticized by the Securities Regulatory Commission.
And Andersen? It is considered to be the most enterprising spirit in mixed operation. Nearly 60% of its partners come from non-audit businesses such as taxation, business consulting and corporate financial operations.
With the continuous expansion of accounting firms, audit fraud has become a common problem. In the past few years, there have been hundreds of large companies in the United States that have been involved in the distortion and correction of profit report data, and each has related accounting affairs. False. In this sense, Arthur Andersen’s integrity crisis is not the integrity crisis of its family.
The supervision of an accounting firm is done by other accounting firms. This means that the entire accounting industry is a self-discipline and mutual supervision industry. Traditionally, the accounting industry is the watchdog of investors, responsible for supervising the financial behavior of enterprises; the accounting industry has won the trust of society and investors for its independence and fairness. This is feasible under conditions where the industry monopoly is not too strong.
However, the formation of the "Big Five" in the United States and its huge business have made the accounting industry in the United States a highly monopolistic industry. Although there is also competition between them, such as fierce competition in the source of customers, sites, and talents, in order to gain To win, they can restrain each other; but it is undeniable that they also have the consistency of interests, such as in the aspect of mixed operation and related legislation in the industry.
At this time, the "Five Majors" will conspire to form a united front and jointly oppose legislation or policies that are unfavorable to them. When the economy is booming, the problems caused by the mixed behavior of auditing and consulting in the accounting industry are not easy to be discovered, because the stock market only fluctuates, everyone is happy, everyone has money to make money; and when the economy is down, A bubble followed, and some companies saw huge losses at any time after the bubble. At this time, the credibility crisis appeared, and people discovered that the original accounting firm had "betting on its reputation." Of course, this kind of dishonesty is not only a problem of a certain accounting firm, but also a problem of the entire accounting industry; it is also a problem of social credit; it is only a certain accounting firm and the entire industry that pays for the loss of credit. Even the whole society. Because in this case, people can't help but ask: "Even Arthur Andersen has no credibility. Who do I trust?"
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