Posts tagged ‘CISA’

 

Are the CPA’s the Good Guys or the Bad Guys?

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In light of the 60 Minutes show spotlighting the Lehman Brothers collapse, I think I’ll try and compile a small database of examples where CPA audit firms have been sued for failure to uncover fraud. We’ll see how this goes. I’ve made a very modest start. The big firms love to hide behind professional guidance […]

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Fear and Loathing on the Audit Trail

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I spend a reasonable amount of time thinking about why management disasters occur and what might have been done to prevent them. Preventing a disaster is much less expensive in every way, especially the human toll, than cleaning up a disaster. When I worked for the supermarket company, We were among the top well managed […]

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Is a Pretend Control Process Worse than No Control?

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At the supermarket company where I worked, they had a wholly owned subsidiary trucking company. They kept a core cadre of drivers and trucks for the basic deliveries and used a local contract firm for overflow. The company company was unionized as a stand-alone union. The drivers were pretty high-caliber professionals and one year, a […]

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Bad Bookkeeper!

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I can tell this story because the basic facts were publicized when the bookkeeper was found guilty of fraud. It happened a while ago, but the lesson is as true today as it was back then. If you have cashiers and bookkeepers, you have theft. Good internal controls will reduce the theft, but will not […]

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