Re: [CANSLIM] Accounting stuff (off topic, sorta)

From: Spencer48@aol.com
Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)
Date: Sun, 14 Jul 2002 13:44:13 EDT

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Patrick (and respondees) 

     This is a very interesting thread you started.  For example, with the 
accounting scandals at WorldCom, Enron, etc. and all the auditors blaming the 
CFO's for not catching on to the sizzle of the cooked books (and vice versa), 
nothing that I've seen or heard (on TV or in periodicals) has explained any 
significant difference between what the CFO and the Auditor does.  Tom did, 
and I thank him.

     This morning on a Fox news show, the previous SEC chairman (Levitt, I 
believe), said that:  It isn't the fraudulent books that might be out there 
(99% of the companies are honest) that are scaring the markets.  But what it 
is is that many companies (I believe he used Xerox as an example)  legally 
and commonly exaggerate their earnings and obfuscate their books.  

     What I understand him to be suggesting is that:  Most of the publically 
held companies have no criminal intent to deceive the investor.  But by using 
GAAP (Generally Accepted Accounting Practices), they are able to do an end 
run around honestly portraying their company.  So while the SEC requires 
quarterly statements, the statements are not much good if the bottom line 
leads to the fabrication of the truth.  

     Personally, I believe GAAP has been transmogrified into AAAP (Anything 
Accepted Accounting Procedures).

jans

     


In a message dated 7/13/2002 7:17:49 PM Eastern Daylight Time, 
stkguru@bellsouth.net writes:

<< I think you are referring to a new requirement that the CEOs and CFOs
 personally certify the accuracy of their Q3 financial reports. A false
 certification would be subject to criminal prosecution.
 
 ----- Original Message -----
 From: "zillagirl" <zillagirl@email.msn.com>
 To: <canslim@lists.xmission.com>
 Sent: Saturday, July 13, 2002 6:54 PM
 Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)
 
 
 I heard that starting in August the law is different and these people and
 the CEOs will be breaking the new laws?? Didn't listen to all the details
 because I thought Id hear it again by then.  I was wondering if a lot of
 these companies will try to restate to get in under the wire.
 ----- Original Message -----
 From: "Duke Miller" <dukemill@tampabay.rr.com>
 To: <canslim@lists.xmission.com>
 Sent: Saturday, July 13, 2002 1:53 PM
 Subject: RE: [CANSLIM] Accounting stuff (off topic, sorta)
 
 
 > And, if you believe what we've seen lately in the press, the Andersen
 > auditors are going to the company's new accounting firms with the
 > account.  The SAME auditor will be in charge of the audit!
 >
 > -----Original Message-----
 > From: owner-canslim@lists.xmission.com
 > [mailto:owner-canslim@lists.xmission.com] On Behalf Of Winston Little
 > Sent: Saturday, July 13, 2002 2:56 PM
 > To: canslim@lists.xmission.com
 > Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)
 >
 >
 > Let us assume that the second house does a full audit.
 > How much confidence can one have that the second audit is "good"? The
 > rules for treatment of the financials do not appear to be absolute, thus
 > the second audit could just be as full of controversy as the first,
 > perhaps in different areas, as the popular sentiment for criticism
 > changes.
 >
 >
 > ----- Original Message -----
 > From: "Patrick Wahl" <pjwahl@attbi.com>
 > To: <canslim@lists.xmission.com>
 > Sent: Saturday, July 13, 2002 1:12 AM
 > Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)
 >
 >
 > > Do you blame them for wanting to do a full audit?
 > >
 > > On 12 Jul 2002 at 23:05, Tom Worley wrote:
 > >
 > > > cool way for the Big 4 to increase their revenues and potential
 > > > earnings (BTW, who audits the auditors??). This way they will be
 > > > able to charge
 > for
 > > > two full audits instead of just one, at the expense of the corps
 > > > (shareholders).
 > > >>

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