bassethorn
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10 years ago @ The UC Observer - All work and no pay - ... · 0 replies · +1 points
Setting aside questions of ethics – important to many of us, and apparently often ignored by many companies which employ (exploit) interns, the foregoing raises the following issue. Evidently the intern Derksen provided valuable services to the employer who, as we see, used these services to generate income. What kind of financial record-keeping does it take to report that your company has sold something which has no book value (ie which cost the company nothing)?
The answer to that question lies in the words of financial executives themselves.
William Lutz’ book “Doublespeak” (Harper and Rowe, 1989) reports the words of
“Leonard Spacek, senior partner and chairman emeritus of Arthur Andersen and Company….
How my profession can tolerate such fiction and look the public in the eye is beyond my understanding…. My profession appear to regard a set of financial statements as a roulette wheel… - it is [the public investor’s] tough luck if he (sic) doesn’t understand the risks that we inject into the accounting reports.”
We are reminded of the now-defunct Arthur Andersen’s involvement in many accounting irregularities (see below).
and
In 1981... OPM Leasing Services …went into bankruptcy….[I]ts founders …were sentenced to long prison terms. From its founding in 1971 to its demise in 1980 O.P.M. was without funds and lost money every year, yet it continued to grow and borrow large amounts of money ($500 million at one time) How was this possible? Having a good accounting firm doing the annual reports really helped:…an accounting firm that would be ‘flexible’, one that would certify financial statements that painted a rosy picture but would not detect the lease frauds in which the company was engaged. He found his accounting firm, one of the twelve largest in the country, which miraculously changed losses and deficits into profits and a positive net worth….
At first, the accounting firm came up with a financial statement that showed large losses and a negative net worth for the company: … the company was losing money and owed more than it was worth…. Mr. Goodman told the accountants to ‘get back to the grindstone and try to figure out a way to show a profit”, and the accountants did. [page 112]
These are not isolated incidents, and have continued to the present (see http://en.wikipedia.org/wiki/Accounting_scandals) If one were to dismantle many of the current digitally-based accounting programs (something which, of course, software manufacturing makes difficult and copyright law forbids) I suspect that one would discover many algorithms which, even for the would-be honest financial data-entry worker, make truthful and straightforward financial reporting all but impossible.
In Matthew 10.16 we read that Jesus said “I am sending you out like sheep into the midst of wolves; so be wise as serpents and innocent as doves.” Some of us hope for a Christian response to the foregoing kinds of events – a response which is honest and principled, but which at the same time is canny enough to “fly under the radar” until it becomes too widespread to be stopped.
(the Reverend) Brock Lupton (ret.)
13 years ago @ Macleans.ca - Auto Draft · 0 replies · +1 points
Vision without action is a daydream: action without vision is a nightmare.
Japanese proverb
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