UK 20:26 Wednesday, 23 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
The Globo (GBO) scandal brings up the issue once again of what an auditor is there to do. Yesterday’s admission that, essentially, Globo’s accounts could not be relied upon suggests that there has been a massive failure. Auditor there: Grant Thornton. But Globo is by no means the only case of investors being misled as to the true picture in a company’s accounts.
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Comments
wildrides
Trouble with Auditors is that these days its largely a regulatory tick box exercise . Grab your clip boards . These people just dont have the audit systems in place that allow them to think out of the box and think the unthinkable . The bigger the company the worse it gets . Verifying complex fraud facilitating transactions takes a lot of legwork and billing the client for that time is going to be an issue . I suggest that certain types of transaction between companies and related parties should automatically qualify for a special audit to same . Only companies carrying out business in a simple manner in the particular Audit year should qualify for a low cost basic audit . Any company engaging in complex transactions should have to have an audit on each one at a set extra cost by law.