Regulator writes to ICAI

Bren1609

Did anyone read this article in the Sunday Business Post last weekend?

http://www.thepost.ie/story/mhsnidsnmh/rss2/

The Institutes silence on the whole Anglo affair has been deafening.

walshy123

http://www.carb.ie/uploads/John%20Purcell%20Appointment.pdf

kluivert

I would like to see what type of audit report was given in the Financial Statements of Anglo Irish.

The auditors may have given an unqualified audit report but may have been references to its going concern.

Do the ICAI not include disclaimers on there audit report.

I remember last year getting a report from a stock broker, giving the thumbs up for Anglo Irish citing good P/E ratios and thus a good buy.

Glad I didnt go down that route.

walshy123

ask and you shall receive. Pg 33 of annual report

http://www.angloirishbank.com/Investors/Reports/Annual_Report_2008/

Hanley

kluivert wrote: »

I would like to see what type of audit report was given in the Financial Statements of Anglo Irish.

The auditors may have given an unqualified audit report but may have been references to its going concern.

Do the ICAI not include disclaimers on there audit report.

I remember last year getting a report from a stock broker, giving the thumbs up for Anglo Irish citing good P/E ratios and thus a good buy.

Glad I didnt go down that route.

Quoting the P/E figure as a sign of the strength behind Anglo seemed to be a tactic coming from some senior managers in the bank too.

Obviously I won't name specifics, but someone very close to me is friendly with one a relatively high up figure in Anglo, and all he did was bemoan the fact the share price was falling when their P/E was stronger than most others.

Bren1609

What i find interesting is that there hasn't been a peep out of the institute and there has been little or no criticism of the profession in general.

Take the Michael Lynn debacle last year when there was outcry about solicitors, the law society and the law profession as a whole.

Here we have one of the largest firms of auditors in Ireland, who signed off on financial statements which did not reflect the reality of the banks financial position and as a result people lost alot of money becuase they were told that the banks financials were sound, then it was left up to the taxpayer to ultimately bail them out!

Mr. Incognito

It's a strange one but you have to remember the auditors follow the money. They see X amounnt on a balance sheet, ring the bank, is it there in x account - Yes.

It's a grayier area when the bank is transferring money on the sneak in and out after the auditors have departed, and similarily where the directors are paying back their loans annually and then taking them out again when the auditors have departed. I think this one has to go through the proper channels before we go blaming the auditors.

Bren1609

Yes but the audit is carried out after the financial year end. Any funds transferred in or out would have been do so at that stage in order to prop up the accounts. Also, auditors should be checking for any post balance sheet events with may have an impact on the accounts.

Mr. Incognito

That's the thing Bren- we don't know what way it was reflected on the accounts.

Hanley

Bren1609 wrote: »

Yes but the audit is carried out after the financial year end. Any funds transferred in or out would have been do so at that stage in order to prop up the accounts. Also, auditors should be checking for any post balance sheet events with may have an impact on the accounts.

When you're testing movements around the year end it's simply not possible to test a wide range because it's too time consuming.

When were the funds being moved around? I'd guess it was a time period over 2-3 weeks before and after the year end.

walshy123

Bren1609 wrote: »

What i find interesting is that there hasn't been a peep out of the institute

did you not see the CARB press release i liked to above?

Bren1609

I see it now Walshy. It will be interesting to see their findings.

walshy123

yes, it certainly will. i hope, and expect, that it will be a fair report.

Bren1609

Any update on the CARB report?

censuspro

Report from the institute is out in early spring according to frontline on rte last night.

Bren1609

bump

smcgiff

A new thread can be started when findings are published.