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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Mark Finger who wrote (10943)	5/22/1998 5:52:00 PM
From: Robert Graham	Read Replies (3) \| Respond to of 14631

Yes, E&Y failed miserably in this respect. However, I see an auditor as performing an ancilliary but important function to the company. The auditing company does not replace the controls and review set up by the management of Informix as a necissary and regular part of their operations. I see the auditor as providing a check to the efforts of Informix in their book keeping. They provide authenticity and credibility to the books for outside interests that are important to Informix, like the creditor and shareholder. This is has become a necissary part of doing business. Matter of fact, I would not want any of the functions of E&Y to be confused with that of Informix's role in managing their books. There should be no comingling of interests here other than to provide an objective analysis and validation of the books. So in this way E&Y should be an entirely seperate interest that is paid to validate what has been recorded by Informix. So in one sense they work for Informix management, but in another they work for the other outside interests. By not doing their job in this respect, their reputation will be worthless to the outside world which will impact their marketability to corporate management. I agree that the release of E&Y is very good and predictable news. But just the same, Bob F could not afford to have another earnings restatement to happen. Was the new auditors a part of 1Q earnings statement efforts? Or are they just sitting down to this role of theirs now? Bob Graham Bob Graham