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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (56942)	1/31/2002 10:14:41 AM
From: i-node	Respond to of 77397

There is a whole perception problem among non-audit industry people that think that audits guarantee the company is fraud free. It's just not true. Not only is it "not true", the management representation letters and the engagement letter ("contract") are specific that while fraud may be uncovered, the audit is not designed to detect fraud and cannot be counted on to do so.

To: RetiredNow who wrote (56942)	1/31/2002 10:26:31 AM
From: JakeStraw	Respond to of 77397

>>But at any given time, most audits have really junior people doing most of the work True. The staff compiles all the needed info., then the manager and partner review it. It's more of a verification process than one to see if anything isn't on the up & up. Heck the company pays for the audit service so there's basically a conflict right there.

To: RetiredNow who wrote (56942)	1/31/2002 11:10:02 AM
From: JeffT	Respond to of 77397

Most all SEC audits are done by a VERY small group of accounting firms. That does allow the SEC to make their oversight more focused and intensive. There would be no need for a shotgun approach to the problem. From this point forward the SEC should be all over, and in, accounting firms that perform any sort of SEC work (such as audits of public companies and the filing of other SEC related documents). Government oversight is the lesser of many evils I believe. It can actually be a very positive thing for the accounting profession too IF it is done properly. Jeff