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I don't have any audit experience but I am happy to take one for the team and volunteer as tribute.
Just document the reputation of the owner then issue an adverse opinion on that basis.
Probably the correct end result, but I doubt the owner will authorise the company to pay the audit fee.
Add the following note to your audit report :
"The events depicted in this report are fictitious. Any similarity to any company, events, person living or dead is merely coincidental"
Maybe the problem is that auditors don't want to work a zero hours contract for less than minimum wage?
Hi Francois, usually I read accounting web as I find it to have quality material and information with unbiased views. Being an editor I didn't expect your review to be biased and dirtying waters for Sports Direct.
I personally believe that you should provide quality information instead of thrashing Mike Ashley.
As far as the audit goes, the big four or five are already prone to systematic failures without any doubts and I think that would be a positive light for smaller firms to take on the challenge.
Mike Ashley wouldn't be providing the ledgers to the auditors so the fact about intimidation doesn't seem to be true.
Thoughts welcome.
Thanks.
Hi mominnz,
Tom here, editor of the site. Thanks for your comment.
I disagree with the assertion that the piece is biased: all the information contained in the report is a matter of public record.
However, where I will give a little ground is that one of the quotes was a little incendiary, and so we have slightly amended it.
Thanks for reading and best wishes,
Tom
Is it wrong to say I hope they go bust - I am not at all bitter and twisted that Newcastle recently poached our manager
Presumably if a similar type of organisation to that of Sports Direct which had a similar structure and management and which was not adversely focused on by the media was available as an audit prospect for the “big four”, anyone of them would happily take on the challenge. In fact the big four probably already audit any number of organisations with “autocratic” leaders wanting to “influence” the auditors. It’s just that these organisations are currently under the radar of the media as were Debenhams, Carillion et. al. before their problems became known in the public domain. It is very easy for the “big four” to be holier than thou when the spot light is on them! With regard to Sports Direct, I continue to be amazed at the good old British trait of “build them up and knock them down”!
100% agree. I have previously commented that the industry of audit needs to be overhauled. The conflict with profitability is a serious issue.
The big 4 have some nerve.......talk about throwing stones in a greenhouse. The quality of their audit work has been questionable for years.....check out the recent fines nevermind going back further.
https://www.ft.com/content/594c8bf2-b2e8-11e9-8cb2-799a3a8cf37b