Credit Crisis Archives - Page 5 of 11 - Emile Woolf writes

Auditing the auditors: some improvement. But what of the economy?

The audit failures I have been highlighting so regularly are given full exposure in the Financial Reporting Council’s latest report on big-firm audit quality in the UK. Adverse findings relate to the usual suspects: goodwill impairment, revenue recognition, IT controls and loan loss provisions. Although quality (or lack of it) varies between the four top […]

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You can print money, but not direct its course

Legal claims against top Wall Street banks arising out of the financial crisis have, so far, settled at over $100 billion, and no doubt there will be more. Claims against audit firms for their involvement will surely follow, and it will be interesting to see how far IFRS-compliance will serve as the defence of choice.  […]

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Sloppy auditing has its consequences – just look around you

My repeated warnings to auditors that compliance with IFRS does not guarantee accounting truth and fairness appear to have struck a resounding chord in high places: the House of Lords, to be precise, where the Parliamentary Commission on Banking Standards debated the Bill on banking reform, now enacted by Royal Assent. In Hansard for 23 […]

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Correspondence with Patrick Baron on the role of money & wealth transfers

From Pat Baron: “Emile, Even Germany is not immune to the predations of the euro.  I keep pointing out that German exporters benefit from euro credit expansion, but at the expense of all other Germans.  This is one reason that Germany is reluctant to put an end to the euro mess…the exporters and their constituents, workers, […]

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Auditors, wasted loans, currency wars… and gold

I noted last month that the record of auditors’ ability to assess the worth of banks’ loan portfolios is singularly uninspiring. In the US the Securities and Exchange Commission is actively pursuing auditors who issued clean opinions after accepting management’s assurances of worth, followed by massive bailouts. Yet any meaningful audit is impossible when supposed […]

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Emile replies to his daughter, Gabi Maddocks

On 20 Dec 2013, at 08:52, Gabi Maddocks wrote: Hi dad – I think you might be interested in this.Xx Check out this video on YouTube. Sent from my iPhone: “The facts are not surprising. The US Government has been printing money out of thin air at the rate of $85 Billion per month for […]

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Auditing banks’ toxic debts

AUDITING BANKS’ TOXIC DEBTS Ever since the financial markets registered their massive tumble in 2008, when Lehman Brothers was left to drown in its swamp of toxic debts, banks’ managements, regulators, rating agencies and auditors have been muttering that banks must rebuild their balance sheets in line with successive Basel capital adequacy criteria. Their auditors, […]

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Hiding the truth with complexity: trust your own reason

When I started writing for this magazine over 40 years ago the editor was a wise old owl called Geoffrey Holmes. During a conversation on some thorny accounting controversy Geoffrey would slyly suggest that I tackle it in my next article. It was no use suggesting a different subject – he would simply look at […]

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Sanity will return – In its own time

Everyone knows that the world’s economic woes are soluble. Every leader acknowledges the blessings of free trade, low taxes, sound money and less regulation. Yet their actions, as ever, speak louder than words and somehow achieve the precise opposite. Take “free trade”. It allows cross-border commercial transactions to take place between willing traders unimpeded by […]

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Banking principles? A contradiction in terms

You hardly need an auditor to tell you what you can see for yourself. The unholy trinity of Central Bank, Treasury and the cabal of leading banking institutions has been operating a mutual self-help alliance that has rendered Britain’s banking capability utterly dysfunctional. The banking sector, overjoyed at the prospect of absorbing central bank largesse, […]

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