Anybody's Game

If the purpose of a audit is to verify, and the auditor can be easily misled, then why have auditors?

Grant Thornton, the international accountancy firm which audited the scandal-ridden futures trader Refco, defended its reputation yesterday in the face of possible multimillion-dollar claims from investors hit by the dramatic collapse of the firm.

Edward Nusbaum, the chief executive of Grant Thornton, admitted that the company would be sued for its involvement in signing off Refco's accounts when it floated on the New York Stock Exchange in August. But he insisted the firm had been misled, just as Refco shareholders had been, by the company's former management.

Sounds a bit like the Clear Politics of "Don't hold me responsible, I'm a victim too!"

Yeah, but it was your job to make sure we weren't all victims.

It's a game played everywhere, and the weapon of choice is poor words. Too bad it has cost its victims hundreds of millions of dollars already.

posted at 19:39:35 on 10/18/05 by clearpolitics - Category: Economics - [Permalink]

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