[CANSLIM] Andersen Revisited

From: Dave Cameron <dfcameron@yahoo.com>
Subject: [CANSLIM] Andersen Revisited
Date: Tue, 29 Jan 2002 18:23:29 -0800 (PST)

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- --- Tom Worley <stkguru@netside.net> wrote:
> But it is the auditor's responsibility to
> object to improper or inaccurate accounting, and resist efforts to
> finds ways to accommodate same. It is the auditor's responsibility
> to ensure that the final 10K accurately and completely reports the
> state of the company's financial condition. I don't think this was
> done by Andersen with Enron, any more than it was done for Global
> Crossing, Sunbeam or Wackenhut. I have seen auditors resign an
> account when they and management could not agree on the final
> report. That at least gives investors, and some analysts, a signal
> to dig deeper.
>

This is exactly my point and problem.   I posted earlier that I blame
Andersen even more than Enron.   Neither are blameless; but many
companies (not just Enron) would want to fudge some numbers to make
things look more attractive to investors.   However, the purpose of
the auditor is to nix that.   We, as small investors, rely on the
fact that an "unbiased" accounting firm has signed off on the
financials.  The fact that Andersen outright ignores this
responsibility is a big red flag for me on ANY company that uses
Andersen as their auditor.   I do NOT want to risk my money on a
company where the numbers I use to evaluate could be completely
wrong.

=====
Dave Cameron
dfcameron@yahoo.com

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