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

From: "Tom Worley" <stkguru@bellsouth.net>
Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)
Date: Sun, 14 Jul 2002 16:59:42 -0400
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I agree, Fred, that this by itself only serves to keep the honest executives
honest, while still exposing them to some future complaint or lawsuit or
criminal prosecution because an accounting interpretation changes, or some
underling was doing something illegal that the CEO or CFO couldn't detect
(they can't be everywhere). Look at Barings, huge bank brought down by the
illegal trading activity in Asia by one rogue trader. Would have been hard
for the parent bank to know what was going on when the Asian subsidiary
didn't.

Fred, how about some specific suggestions of what you think should be
changed or mandated, either as law or by accounting standards?

- ----- Original Message -----
From: "Fred Richards" <adrich@gte.net>
To: <canslim@lists.xmission.com>
Sent: Sunday, July 14, 2002 4:39 PM
Subject: RE: [CANSLIM] Accounting stuff (off topic, sorta)




This is a perfect example of a "feel-good" regulations that will prevent a
lot of good and qualified people for refusing to take on the responsibility
of being CEO's and/or CFO's.

In fact, I already know of three CEO's who are top-notch and rather young
who have been advised by their financial advisors to resign and retire
before this terrible regulation goes into effect.

At this point, at least two of them are submitting their letters of
resignation.

Over the last 20 years, a large number of my acquaintances and myself have
refused to accept offers to be on public boards.  Even with the liability
insurance, it isn't worth the hassle.

In the end, these types of "feel-good" will have the exact opposite effect.
Qualified people will find it increasingly necessary to refrain from the
potential financial and criminal exposure.

As a result, you are left with candidates who are cronies,
politically-correct figure-heads who haven't the faintest idea of what the
business is about, and people who could not read a financial statement,
interpret the accounting notes, and make a decision if there life depended
upon it.



- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of J. Lobatto
Sent: Saturday, July 13, 2002 8:30 PM
To: canslim@lists.xmission.com
Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)


Have to admit I find this provision of the law fairly bizarre. How can a CEO
or CFO of a huge corporation personally verify the accuracy of a financial
report. Is he or she supposed to hire his own auditors to audit the report.
If I were facing a possible criminal charge for false certification, I'd
want to........

Jon
- ----- Original Message -----
From: "Tom Worley" <stkguru@bellsouth.net>
To: <canslim@lists.xmission.com>
Sent: Saturday, July 13, 2002 6:56 PM
Subject: Re: [CANSLIM] Accounting stuff (off topic, sorta)


> 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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