Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 240.87

+3.4%

Jan 6 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: H James Morris who wrote (138391)	2/3/2002 7:07:22 AM
From: craig crawford	of 164684

BusinessWeek Online BARKER.ONLINE -- Investors' New Worry: "Auditor Risk" biz.yahoo.com Sunday February 3, 12:01 am Eastern Time ............................ In Enron's case, Andersen's audit fees of $25 million in 2000 were outstripped by the $27 million it charged for other consulting work, including -- get this! -- risk management. OPEN YOUR EYES. That's no anomaly. Look at General Electric (GE), the world's most valuable company. GE's last proxy reported that it paid KPMG $23.9 million in 2000 for its audit. It was further reported in the proxy statement that GE also paid KPMG a total of $79.7 million in 2000 for a variety of other services, from consulting on computer systems to tax preparation to advice on mergers. KPMG collected more than three times as much money from GE for its consulting work as for its audit. No one is accusing KPMG of stinting in its role as an auditor on behalf of the board, with ultimate allegiance to GE shareholders. GE's audit committee explicitly noted that it had ``considered whether KPMG's provision of nonaudit services...is compatible with KPMG's independence.'' The directors concluded that KPMG's independence remains intact. Again, fair enough. But this is precisely the kind of imbalance that holds the potential for conflict of interest and can raise eyebrows.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next