Silicon Investor (SI) -- The First Internet Community

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 : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Michael who wrote (8473)	12/18/1997 8:04:00 PM
From: BubbaFred	Respond to of 14577

Were the books cooked? I cannot understand why the Auditors and CPA firms are not liable? I thought these CPA's are certified professionals (?) and are required to perform verifications as well as use acceptable accounting standards. Heck, what's the problem then? Incompetent CPA's? Changing the accounting method after a several years? Is it because of the continuing changes in tax laws that subsequently requires changes in accounting method? NO WAY!! It's just how the books were cooked! I am getting sick and tired seeing these litigations due to cooking the books. I know that cooking the book is the standards in most developing and third world countries. Who cooked and verified the books? The Auditors and CPA's, of course, without any doubt.

To: Michael who wrote (8473)	12/18/1997 8:53:00 PM
From: Ken Muller	Read Replies (1) \| Respond to of 14577

Michael: I am trying to measure the impact of misrepresenting company revenue and earnings. I looked up the 2 examples you gave me: National Steel >>NATIONAL STEEL CORPORATION (NSC) is the leading manufacturer of steel products in the Philippines. With assets of over P29 billion, NSC has one of the biggest and most modern steel mill installations in Southeast Asia. Organized by the Philippine government in 1974, NSC has emerged as one of the largest, most profitable corporate institutions in the country.<< I don't believe this Phillippine company's actions have much relevance here. Fine Host Dec 15, 1997 (one day after company's restatement announcement>>.The independent directors of the Board of Directors have terminated the employment of Richard E. Kerley, Chairman of the Board and Chief Executive Officer, and Nelson A. Barber, Senior Vice President and Treasurer. The Board of Directors expects to retain a crisis management firm and also expects to retain a separate forensic accounting firm to review past accounting practices.<< I think the actions of the board in this case accurately reflect the seriousness of the accounting errors. The longer S3 stonewalls their previous actions, the higher the legal penalty. Happy Holidays, Ken