@traynickel Audit companies are not publicly listed, they are limited liability partnerships (LLP). If they were listed, then someone could buy their stock, including possible customers, which would violate their independence requirement.
However, independence issues are not always obvious. I.e. audit firms want to keep big customers such as Lehman, tempting them to turn a blind eye on some of their practices. Such informal independence issues are hard to prove, unless someone collapses.
@victorvols How about this: Accounting firm Ernst & Young was sued by New York regulators on Tuesday, accused of helping to hide financial risks at Lehman Brothers Holdings Inc before the Wall Street firm's 2008 collapse.
Ernst & Young tried to make sure Lehman’s accounting for Repo 105 complied with generally accepted accounting practices in the U.S. at the time. The firm may have been negligent even if Repo 105 trades “technically” complied with U.S. rules, he said.
ey doesn't come up as ernst&young
fuislamtube 1 year ago
what is the trading symbol for ernst&young????
fuislamtube 1 year ago
(EY)
traynickel 1 year ago
@traynickel Audit companies are not publicly listed, they are limited liability partnerships (LLP). If they were listed, then someone could buy their stock, including possible customers, which would violate their independence requirement.
However, independence issues are not always obvious. I.e. audit firms want to keep big customers such as Lehman, tempting them to turn a blind eye on some of their practices. Such informal independence issues are hard to prove, unless someone collapses.
victorvols 1 year ago
@victorvols How about this: Accounting firm Ernst & Young was sued by New York regulators on Tuesday, accused of helping to hide financial risks at Lehman Brothers Holdings Inc before the Wall Street firm's 2008 collapse.
Ernst & Young tried to make sure Lehman’s accounting for Repo 105 complied with generally accepted accounting practices in the U.S. at the time. The firm may have been negligent even if Repo 105 trades “technically” complied with U.S. rules, he said.
traynickel 1 year ago