Stardate 20010623.1540 (On Screen): This article discusses how common "creative accounting" has become, and shows a rogue's gallery of small
and large companies who have had to "restate earnings" (read "admit that they lied") in the last couple of years. What I want to know is why no-one is flaying the auditors for not catching this nonsense. Isn't it their job to look over the books and make sure that no-one is cheating? The auditors are supposed to work for the stockholders and you'd think that there would be some outrage directed at them for missing this kind of baloney, but I've never heard of any. If they're not catching the fakery, just what exactly
are they doing, and why are they there?
How about a couple of high-profile big-buck malpractice suits, eh? If PriceWaterhouseCoopers gets nailed for $200 million next time some company "restates earnings", I think they might scrutinize the books a bit more carefully from now on, and actually earn their fee. (discuss)
