AboutFinance Guy Expertise 1. All questions relating to finance
2. All practical aspects of mergers and acquisitions
3. Many general business questions
Experience Considerable experience in the area consisting of 25 years in both consumer and commercial finance and business management, including 15 years specializing in international Mergers and Acquisitions with over $100 billion in assets acquired
Education/Credentials Business administration undergrad
Wharton post grad in finance
Awards and Honors numerous corporate awards
Past/Present clients range from small enterprenurial companies to large multinationals
Expert: Finance Guy Date: 6/15/2008 Subject: Audit danger?
Question Dear Ron,
I heard that the works of an auditor comes with danger including being threaten and even murdered to prevent the auditor from discovering any financial fraud. What is your experience in this? Currently is there any solution for this problem? Is there any hope at all to enforce justice?
Answer Maybe if you take a job with the Mafia...
Perhaps in some very extreme and rare cases, this could occur.
Much more common, however, is pressure to "go along to get along"!
This is much more commonplace, especially in public companies, whose execs are in line to make millions on stock options if they can simply push that stock a little bit higher...
Pressure from the CFO, the CEO, the head of accounting, seemingly almost everyone, who stands in line to give you performance reviews, raises, or the pink slip.
This can be enormous pressure on a guy or gal who is simply trying to pay the mortgage and get the kids through school.
And yes, this happens ALL THE TIME!
It used to never be the case in a public accounting firm that there was "excessive" pressure to bend the rules and look the other way.
But look at fairly recent examples, Herons' accountants for example,
anything to keep the client satisfied and those huge accounting and or auditing fees coming in year after year.
In political America, as in corporate America, EVERYTHING IS FOR SALE!
