Bankers vs. America

Remember the old films and cartoons of the banker tying the widow to the railroad tracks so he could foreclose on her property? A century later and they're still at it. It's inexcusable that none of the Wall Street executives and brokers that created the financial crisis which has hurt so many people are not in jail. Yet another example of the differences between what is ethical and what is legal.

Take Me Out (of) the Ball Game

Imagine how excited you might be to find the following employment ad in the classifieds:

Earn $2+ Million/Yr. Work Apr-Sept; poss OT in Oct.  Only req'd to work in good weather; no rainy days! Travel to major cities; stay at best hotels. Only expected to be productive 20%-30% of time; excellent performers (productive 30%-35%) earn much more. Random drug-testing conducted; not taken seriously though (should not impact career earning capacity).  Add'l income potential fm endorsements, TV and personal appearances, product sales.

The Absurdity of Audits

The following companies have at least 5 things in common:

 Bank of America • JPMorgan Chase • Capital One Bank (Credit Cards) • Goldman Sachs • Citigroup • Keycorp • Wells Fargo • AIG (Insurance) • American Express • US Bancorp • Merrill Lynch • General Motors (including GMAC Financial Services) • Chrysler (including Chrysler Financial)    Answers below*

The general public tends to think of certified public accountants primarily as tax preparers, but anyone can help you file taxes.  Basically, the only thing CPAs can do that you can’t (legally) do is issue an “opinion” on financial statements; specifically, performing the “annual audit.”

For many organizations, foregoing the annual audit is not an option; they are often required by law, grant requirements or loan covenants.  Most directors and stockholders/members (and lenders!) are under the impression the audit is an indication all is well.  By the time an audit report is received (4-6 months after year end) the organization could be in serious trouble.  Even then, it never addresses critical questions: