Comments on: Cuomo lashes out at Ernst & Young http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: y2kurtus http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22174 Wed, 22 Dec 2010 17:18:32 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22174 The core issue here is who pays for the audit. It’s the same issue as the credit rating agency mess.

The SEC should perform annual audits on all exchange listed companies and bill them for the time the same way the FDIC audits banks. If you are allowed to shop your audit around to the accounting firm most willing to bend the rules than you are always going to have Enron style blow-ups.

Even if a govemental agency did the auditing you would still have some problems… but I’d bet they would be more infrequent than under the current system where companies essentially pay a firm to swear to shareholders their annual reports aren’t works of fiction.

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By: leona123 http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22170 Wed, 22 Dec 2010 17:02:08 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22170 You do know that there isn’t going to be “criminal prosecution” and that it is a civil suit? Very likely to settle out of court too.

As an auditor, E&Y has to follow the auditing standards set by US GAAS and it seemed like they did follow the standards that were set at the time. Post-financial crisis; there were some major changes to these standards.

They have a public response now.. You should take a look.

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By: EricVincent http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22148 Wed, 22 Dec 2010 07:21:10 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22148 @crocodilechuck:

Thanks for the confirmation.

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By: EricVincent http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22147 Wed, 22 Dec 2010 07:20:05 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22147 @crocodilechuck:

Thanks for the confirmation.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22144 Wed, 22 Dec 2010 03:47:37 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22144 Mr Cuomo presumably knows the difference between liquidity and leverage?

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By: crocodilechuck http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22141 Wed, 22 Dec 2010 02:11:21 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22141 “Can we assume there were no former Arthur Anderson employees working at E&Y, or would that be pathetically naive?” In Austalia, E&Y hoovered up the Arthur Andersen audit business.

And, off topic, (but not really): Felix, thanks for your wit, balance and perspicacity in 2010. Your site: one of the best. Best wishes for the holidays!

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By: PR1 http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22138 Wed, 22 Dec 2010 00:05:42 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22138 Why do you use terms in your headlines such as “lashes out” in lieu of “criticizes” or “accuses”? It implies a degree of excessive emotion (even physicality) rather than legal justification.

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By: EricVincent http://blogs.reuters.com/felix-salmon/2010/12/21/cuomo-lashes-out-at-ernst-young/comment-page-1/#comment-22134 Tue, 21 Dec 2010 21:13:54 +0000 http://blogs.reuters.com/felix-salmon/?p=6677#comment-22134 Can we assume there were no former Arthur Anderson employees working at E&Y, or would that be pathetically naive?

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