atans1

TOC misrepresents facts yet again

In Accounting, Temasek on 17/07/2018 at 5:22 am

When Temasek released its details, TOC, it seems, tried to cast aspersions on Temasek’s results by pointing that its auditor KPMG was in the UK’s authorities’ dog house for the quality of its audits in the UK.

The UK Financial Reporting Council (FRC) is an independent regulator responsible for promoting high quality corporate governance and reporting to foster investment in UK. Its board of directors is appointed by the UK Secretary of State for Business, Energy and Industrial Strategy. FRC plays a crucial role in the oversight and development of corporate governance standards such as the UK Corporate Governance Code and standards for the accounting industry.

UK FRC said that KPMG audits had shown an “unacceptable deterioration” and will be subject to closer supervision.

Every year, the UK FRC reviews the audits of Britain’s biggest companies to ensure they meet certain standards. The FRC noted problems at other auditing firms too, but KPMG was specially singled out for the poor quality of its work.

“There has been an unacceptable deterioration in quality at one firm, KPMG,” the FRC said in a statement …

Terry’s Online Channel

As OCBC is also audited by KPMG, is TOC also casting aspersions on OCBC’s results?

Seriously, TOC doesn’t tell that all the big four accountancy firm are in the sights of the UK’s authorities:

The UK’s top banking and insurance supervisor has said he is worried about the quality of audits by the Big Four accountancy firms. Sam Woods, the chief executive of the Prudential Regulation Authority, told the Treasury select committee on Wednesday that it was “a bit of a worry” that the Financial Reporting Council rebuked the four firms* — Deloitte, EY, PwC and KPMG — last month for a fall in quality, particularly in banking audits. Stephen Haddrill, the FRC’s chief executive, said at the time that “the Big Four must improve the qualify of their audits and do so quickly”. The FRC attributed the deterioration in quality to a failure to challenge management and show appropriate scepticism across their audits.

FT

And that despite all this KPKBing, when Goldman Sachs Int’l tried to appoint a non-big four auditor Grant Thorton to audit it, replacing a big four auditor, the UK authorities raised an eyebrow on whether Grant Thorton can do the job. The matter is ongoing.

All this is a matter of public record, yet TOC in what seems to be an attempt to slime Temasek left out inconvenient facts.

Looks like TOC is going the way of the Idiots S’pore or is it Indian S’pore?

Sad for someone who helped out at TOC.


*TOC said only KPMG was singled out, remember: “KPMG was specially singled out for the poor quality of its work”?

  1. The writer “Correspondent” is a friend of yours. He has in recent times gone off the rocks.

  2. […] Thoughts of a Cynical Investor: TOC misrepresents facts yet again – The Motley Fool Singapore: Koufu’s Initial Public Offering: A Bull’s […]

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