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Re: The Story of Frujinator
Old 04-05-2006, 08:48 PM   #61
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Re: The Story of Frujinator

Quote:
Originally Posted by Texas Proud
So, you have to have controls in place to prevent fraud etc.. and there is a cottage industry that is doing Sarbanes Oxley testing etc... and it is costing companies a LOT of money to comply... I am 'lucky' that I only need to do testing twice a year on my stuff as it is deemed not critical..
Wrong .. no control on earth will prevent fraud. That is huge myth and let me be the first to correct you. All controls will do is minimise the possibility of fraud and hopefully reduce the damage if fraud is perpetrated. Even then there has to be as cost-benefit. One does not spend two dollars to save one.

On a related note, I was once at a BOD meeting submitting my annual internal audit review. Someone casually mentioned the term 'risk taking' in the context of enacting workable functional internal controls. I pointed out that well run companies do not take risks. Rather, they manage them. Nobody objected to my comment.



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Re: The Story of Frujinator
Old 04-05-2006, 09:08 PM   #62
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Re: The Story of Frujinator

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Originally Posted by frujinator

But can someone explain to me in more detail what Sarbanes Oakley has done to the world of Accounting?
I would be glad to give you my view even though others here may not share it.

SOX is what we refer to it as.

SOX had to happen.

With all those misleading financial statements, and awkward and humiliating about face re-statements, and the demise of some huge companies, it was only a matter of time before SOX was born.

The Board of Directors can no longer conveniently and blindly trust their external auditors.

Nowadays companies which are publically listed must put it all in writing and take full responsibility to do their due diligence. That means the Board, or one person designated, must officially attest to the efficacy of controls. They can no longer blame the accountants and say they knew nothing if any wrongdoing occurs (such as these called 'accounting irregularities'.)

I say it is about time. Well overdue in my view.

Some companies say they need more time. Others say it is too costly. I say time to quit bitching and get on with the job. It is about time someone took corporate governance seriously and not pay lip service.

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Re: The Story of Frujinator
Old 04-05-2006, 10:19 PM   #63
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Re: The Story of Frujinator

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Originally Posted by roadkill
I am a CPA and CFO as well. When I was in public accounting, I saw the partners in the firm working enormous amounts of hours with no life outside of work. I quickly decided that I did not want to grow up to be a partner in a CPA firm. However, I think anyone who aspires to a financial career would gain a great deal by spending a few years in public accounting and pass the CPA exam. This will open many more doors for you.
I chose exactly the same route. I decided not to become a practitioner even though it would have been more lucrative. I made that decision some 38 years ago and have never looked back. I decided to become an accountant at age 16. I knew even then exactly what I wanted to do. That was 47 years ago.
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Re: The Story of Frujinator
Old 04-06-2006, 11:30 AM   #64
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Re: The Story of Frujinator

Quote:
Originally Posted by limey
Wrong .. no control on earth will prevent fraud. That is huge myth and let me be the first to correct you. All controls will do is minimise the possibility of fraud and hopefully reduce the damage if fraud is perpetrated.* Even then there has to be as cost-benefit. One does not* spend two dollars to save one.

On a related note, I was once at a BOD meeting submitting my annual internal audit review. Someone casually mentioned the term 'risk taking' in the context of enacting workable functional internal controls. I pointed out that well run companies do not take risks. Rather, they manage them. Nobody objected to my comment.
Just semantics in my opinion...

they are there to PREVENT fraud, you do not get told to let 10% or 1% or any % fraud to take place... but to prevent it...

But, like you say, there is no system in the world that can prevent it...
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Re: The Story of Frujinator
Old 04-06-2006, 12:36 PM   #65
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Re: The Story of Frujinator

Today I asked my Accounting Professor and he pretty much said the same thing.

He said that out all of the legislation coming out of congress/senate, this is one of the more reasonable laws. It is meant to prevent fraud and not only "Blame the Accountants", but yet it does add more work and in turn increased the need for Accountants! Woo-Hoo!

I'll stick with Accounting, but I will take business and other financial courses as recommended!

Thanks guys!

-Fruji
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