The fact is, for advertising materials, there is at least one other company that is willing to provide a very different set of numbers to its competitors' advantage. Heck, chances are when you pay enough, their so called auditing company will come up with something else to please you too. Which will you believe than?
Anyone who is well established in the ads and publishing industry will know this as a fact.
I say believe in none of these nonsense. Rely on your personal preference to choose what each system can offer you instead cuz in reality, none of these system is perfect. Peeps have a tendency to flock to a system where they think is "popular", not knowingly that it might not be the better choice for them. Exercise your power of choice instead folks!
Another Enron in the making? I wonder what will our Auditor-General and Public Accountants Board have to say? Why would a person spend 4 years of studying for an accountancy degree and training/working for an audit firm/s which 'never tells the truth'. What a waste of time and talent!
Tax avoidance by taking advantage of loopholes to reduce your taxable income or liablity are legal. Tax evasion where you do not pay taxes that the govt informed that you must pay or to misrepresent facts in order to reduce your tax liability is illegal...
Thanks Watcher. That's what I meant. I know tax evasion is illegal.
Training/working from the books is ok to be a better accountant/auditor. All is not lost. Of course it's never a waste of time with what they have studied. They are so smart they will find ways to help companies reduce some burdens but legally of course. What you study sometimes may not be put into practice. :thumbsup:
In photography goes the same too. When it comes to shooting evidences, only a film camera will tell the truth. With digital you can manipulate and it's not approved at the moment for court usage.
Loopholes are created to reduce the heavy taxes from the goverment. The Goverment themselves monitors companies with high volume sales will have to pay heafty taxes as they have records when each shipments arrive at the ports/airports. However, big corporations with high sales volume that pays heavy taxes can hardly survive with it.
It's not about whether companies tells the truth. Is how much truth are they willing to reveal. It is true that if an accountant/auditor who report a false statement from a certain company, their licience will be barred forever, may have to face a heavy fine and sentence to jail. Every accountants/auditor knows that very well. :nono:
Have work with publishing and advertising companies before on how to find ways to promote products which have normal volume output to up their sales. I am not saying Canon is not selling but they are. But 7 out of 10 ratio........! Now that's a gimmick worth waiting for............ :bsmilie:
What Enron did was wrong because they were caught and put under the microscope. They were wrong because a lot of voters were out of job. They were wrong because the hole they create was small enough for <them> not to plug, aka they were allowed to go under.
If they are indeed "too big to fail", "which may cause the systemic failure of the markets/market particpants" then intervention will be necessary aka LTCM.
That said, they are not the only ones doing it. Every company with accountants worth their salt do it. After Enron, a lot of companies essentially did a lot to prevent such "specific" incidents from happening.