UK-headquartered but nowadays US-centred arms multinational BAE Systems faces negative headlines once again, as it has been announced that accountancy firm KPMG is to be investigated by UK regulators regarding its past performance as BAE's auditor. The Accountancy and Actuarial Discipline Board, the UK regulator covering public- …
the firm does not believe there has been any act of misconduct
Does this translate to;
"The firm believes that it managed to carry out the immoral and unethical tasks referred to in a sufficiently convoluted and obscure manner that despite clearly breaching the spirit of the law there is nothing substantial enough to hang us for" ?
We can only hope that the regulator finds enough to morph this into;
"The firm was unaware of the purpose or intent of the myriad shell companies and offshore entities it advised on the creation of and it was all the big bad BAE, we'll squeal like stuck pigs sir!"
Can anybody say...
Arthur Andersen was an example of a major court system snafu that resulted in the destruction of a company of questionable guilt (if you missed the news, the verdict was vacated due to poor jury instruction).
Any external auditor will tell you "we don't audit for fraud"... but nobody cares in the news...
nothing will come of the investigation other than a few million in fees.
Let's take this one point at a time..
The Arthur Andersens Houston office was "allegedly" guity of massive professional misconduct.
Shredding the files.
Whether or not this was true they took a fatal hit to their reputation.
That is what finished Andersens - not the court case.
As to the "we don't audit for fraud" it just means it isn't specifically looked for. If it is detected then it needs to be reported.
"nothing will come of the investigation..." we'll see.. I have popcorn, I can wait.
Does one of BAE's subsidiaries manufacture brown paper envelopes. They really should buy someone who makes them since they use enough in the course of business.
You forget the Chairman and CEO of BAe have unfettered access to the UK PM
So the UK Govt will do their usual sleeping policeman act.
It would be interesting to know if the CEO's of Boeing and LockMart have *that* level of access to Obahma (Good certainly, but *unlimited*).
BAe has played the "We're as British as Marmalade, cricket and soccer, dontcha know" BS *far* past it's sell by date. Yes they *are* a global arms manufacturer who *were* owned by the British Government.
They should grow up and start acting like a grown up corporate citizen, not a whiny little brat that will bully anyone smaller than itself and whine to "mommy" if threatened.
I don't handle childish behavior in governments or public corporations very well.