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Non-Tech : ICICI Ltd - (Nyse: IC) -- Ignore unavailable to you. Want to Upgrade?

To: akmike who wrote (366)	3/11/2000 8:55:00 PM
From: Labrador	Respond to of 494

>>Mohan-many thanks for the report. I have no knowledge specific to this situation, but I can comment that throughout our history here in the U. S. investors have been continually burned badly by an overreliance on audited GAAP accounting. This phenomenon most generally occurs when a particular segment of lending is undergoing a significant growth phase. << In the U.S., typically the regulators spend considerably more time reviewing the adequacy of financial statements than the outside auditors. Further, the financials are the views of management, not the outside auditors. Accordingly, if a financial institution deteriorates in the U.S., it is more a problem of the regulator inspections than the auditors. You are correct that the auditors come in after the fact, and further they are responsible for detecting fraud. Finally, most large accounting firms will not accept a financial statement attest client if the institution has a CAMEL rating under 2. I would think that if the India regulators maintain reasonable standards and are adequately trained, the ICICI financials should be reasonable. I think that it was inappropriate for the author of that article to suggest that there is a problem given the facts as we know them today.