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.

Globo Scandal - How much did the FY14 Audit cost?

By Nigel Somerville, the Deputy Sheriff of AIM

2 November 2015 00:29

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Needless to say, when a fraud scandal breaks one of the questions which gets asked is where were the auditors? In some cases the audit is shown to be hopeless - I would imagine that some will view KPMG's efforts with Quindell (QPP) in that category. Sometimes it is simply that the level of audit which would have been required to unearth the fraud (or, cough, errors) would simply have been too expensive to perform and not necessarily required by the regulators.

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Comments

Hanging is Far Too Good for Them

2 November 2015, 01:41

Hush money?
BobbyChariot

2 November 2015, 01:54

It’s there in black and white – audit of subsidiaries (94k!)

Hope there is a class action suit against GT and they get a huge fine, well over the 400k fee they charged GBO.
Forty Two

2 November 2015, 04:17

Absolute crooks. Wouldn’t an audit entail picking up a phone to see if a distributor exists?
Dick

2 November 2015, 13:13

What a racket!
drunken sailor

3 November 2015, 07:58

GBO in administration, 0p for shareholders expected. A Class Action against Auditors a possibility.