Auditors unable to provide audit opinion on AHPETC's financial statements

[Unrepented]

Read somewhere that the external auditor lacks evidence to form an audit opinion in certain areas, it's a qualified report I think. But it is not pervasive.......and my friend told me if the auditor finds any wrong doing so great........they can excuse themselves from the audit engagement.

If there is lack of evidence, it's only an indication but not conclusive...... so IMO, they have no solid grounds to report CPIB.

Unless an auditor has evidence that a client is acting against public interest or committed an act against the law.

Maybe they have already alerted the CPIB but since the investigations are in the initial stages they can't come out & say a crime has been committed

 

[Asterix]

Jia lat. Grant Thornton is quite a respected firm.

Jia lat Sinkies don't know how to do basic research
Please do not take for Granted that just because name's famous
Eberything they say can be believed and taken at face value
Must bery careful so as not to be badly hurt by sharp Thorns

News item number 1 on "respected" firm:


(Reuters) - A former partner at Grant Thornton pleaded guilty on Wednesday to stealing nearly $4 million in client payments to the global accounting firm.

Craig Haber, who prosecutors said diverted money to his own bank accounts between 2004 and 2012, pleaded guilty to a charge of mail fraud in federal court in New York.

"I knew my conduct was wrong," Haber said at a court hearing. "I apologize sincerely to the firm for my actions."

Haber, 59, had been a partner at Grant Thornton from 1993 to 2012 in the firm's New York offices.

As part of his plea, he has agreed to not appeal any order requiring up to $4.34 million in restitution. He also agreed to forfeit $3.97 million, as well as all rights to his downtown Manhattan apartment and $1.8 million in a brokerage account.

Haber was arrested in February in connection with the theft, in which Haber stole $3.97 million in payments intended for Grant Thornton, a court document said.

Grant Thornton is the sixth-largest accounting firm globally with $4.2 billion in revenues in 2012, according to International Accounting Bulletin.

The firm was not named in court documents, but a spokesman for Grant Thornton previously confirmed its role and said it cooperated with the investigation. Grant Thornton terminated Haber in July, charging documents said.

Tim Blair, a spokesman for the firm, said Wednesday the firm was "pleased that the authorities have resolved this matter swiftly."

At a hearing on Wednesday, Haber admitted to telling clients to mail checks directly to his office instead of through the normal processing channel. He then deposited the checks into a bank account he controlled, Haber said.

Charging documents said Haber then used the money for personal expenses, including his New York apartment's mortgage, according to charging documents.

Sentencing before U.S. District Judge Kevin Castel is set for December 13.

Haber faces a maximum 20 years in prison. Under a plea agreement detailed in court, prosecutors have stipulated to a sentencing guideline of 51 to 61 months in prison and a fine of $10,000 to $100,000.

The case is U.S. v. Haber, U.S. District Court, Southern District of New York, 13-cr-434.

http://www.reuters.com/article/2013/08/21/us-grantthornton-haber-idUSBRE97K0YS20130821

 

[Scrooball (clone)]

Take a look at MacPherson Estate (TPL's ward) in Marine Parade GRC.
One of the oldest estates in Sinkie but how much upgrading and redevelopment do you see there?

They just upgraded the macpherson community club there.

 

[Asterix]

Jia lat. Grant Thornton is quite a respected firm.

Jia lat Sinkies don't know how to do basic research
Please do not take for Granted that just because name's famous
Eberything they say can be believed and taken at face value
Must bery careful so as not to be badly hurt by sharp Thorns

News item no. 1 on “respected” firm at post #42 of this thread.

News item nos. 2 and 3 on “respected” firm at post #67 and 69 respectively of this other thread:

http://www.singsupplies.com/showthread.php?174930-WP-kenna-play-out-again&p=1790277#post1790277

News item no. 4 on “respected” firm here:

Let it not be said that there is no drama in accounting. In Hong Kong last year, the disappearance of former Grant Thornton managing partner Gabriel Dias-Azedo was a cliff-hanger. A pillar of the community, the influential accountant who built up Grant Thornton’s Hong Kong practice was sued by a relative and two close friends for allegedly defrauding them of millions of dollars.

Some thought him dead, perhaps at the hands of shadowy gambling syndicates with which the racehorse owner is said to have consorted. But last week, Azedo was found alive and hiding out in Spain. He may be repatriated to Hong Kong to face fraud charges, although the two jurisdictions have no extradition treaty.

What’s the next act in this long-running drama? Will Azedo’s trial finally lay to rest the reputational damage that was done to his old firm? Will the lawsuits against Grant Thornton Hong Kong and the global network Grant Thornton International be revived? What will be the impact, if any, on the supposed mass exodus of Grant Thornton Hong Kong partners and staff to rival BDO and the future prospects of new Grant Thornton International member firm Jingdu Tianhua Hong Kong?

After he disappeared in September last year, Azedo was sued by his distant cousin Angela Rita Gardner, who alleged that Azedo, through Grant Thornton Hong Kong and Grant Thornton International, defrauded her of US$9.8 million. Azedo was also taken to court by Arthur Antonio Da Silva and his wife Betty, two of his close friends (and also long-time friends with Gardner), for supposedly absconding with US$2.2 million that they had entrusted to Grant Thornton as part of their estate planning.

On November 27 that year, the Da Silvas obtained a default judgement against the missing Azedo for US$2,339,922.07. On January 10, 2010, Gardner was awarded another default judgment against the accountant for US$9,756,879.63. Both petitioners then took out enforcement proceedings in Hong Kong and London to track down Azedo’s assets. So far, the assets uncovered include two properties in London, a bank account in Hong Kong, and money that Grant Thornton Hong Kong is said to owe Azedo.

.................................

http://www.cfoinnovation.com/content/grant-thornton-and-return-gabriel-azedo

 

[Asterix]

Jia lat. Grant Thornton is quite a respected firm.

Jia lat Sinkies don't know how to do basic research
Please do not take for Granted that just because name's famous
Eberything they say can be believed and taken at face value
Must bery careful so as not to be badly hurt by sharp Thorns

News item no. 1 and 4 on “respected” firm at post #42 and 44 respectively of this thread.

News item nos. 2 and 3 on “respected” firm at post #67 and 69 respectively of this other thread:

http://www.singsupplies.com/showthread.php?174930-WP-kenna-play-out-again&p=1790277#post1790277

News item no. 5 on “respected” firm here:

A double blow for Grant Thornton, the liquidator of Ponzi scheme fraudster Bernie Madoff’s UK trading company.

Not only has the accountancy firm been told that the directors of Madoff Securities International Limited (MSIL) were all honest men, as the Serious Fraud Office decided in 2010.

Now Diary hears all the defendants falsely accused of being complicit in the fraud by Grant Thornton are seeking indemnity costs for the distress caused, with a hearing before Mr Justice Popplewell, the judge who ruled in their favour last Friday, set for the week of November 11.

Diary understands the costs sought solely by Stephen Raven, the former chief of MSIL, are knocking on the door of £4m.

Multiply this by four, for each set of defendants in the case, and Grant Thornton, instead of recouping the £75m it claimed for, could be set to pay out around £16m.

“There will be blood on the carpet as the defendants complain about the costs they have incurred,” says a source close to the case.
No wonder a spokesman says Grant Thornton is “extremely disappointed”.

Still, at least the lawyers acting for Grant Thornton, Taylor Wessing, will be handsomely reimbursed for their work.

According to a filing in the States, Taylor Wessing charged fees of $5.8m (£3.6m), plus expenses of $3.3m, for its time spent on Madoff matters in the UK and offshore haunts such as the Cayman Islands over the five months to April 2013 alone.

Taylor Wessing was, of course, “mindful of the need to avoid undue legal fees”, so it staffed the case “leanly”.

That means it assigned a mere 61 lawyers, billing an average of $317.41 an hour, who between them expensed $16,300 for stationery and $61,300 for photocopying.

http://uk.finance.yahoo.com/news/city-diary-grant-thornton-faces-070032736.html

 

[Unrepented]

Blame the teacher and tution teacher if the kid fails in the exams. Now wack the audit firm..........but my question is; if this firm is like this..........then why bother sign engagement letter and appoint them as auditor in the very first place


Or does MND has a restricted list of external audit firms to choose from???????

News item no. es.com/showthread.php?174930-WP-kenna-play-out-again&p=1790277#post1790277[/url]

..........................url]

 

[Asterix]

Blame the teacher and tution teacher if the kid fails in the exams. Now wack the audit firm..........

Not at all, read this carefully and you will get my drift, unless you have a conflict of interest:

Jia lat Sinkies don't know how to do basic research
Please do not take for Granted that just because name's famous
Eberything they say can be believed and taken at face value
Must bery careful so as not to be badly hurt by sharp Thorns

May I tell Singaporeans
Another unsavoury tale about Grant Thornton
Let me start at the beginning ... ...

Parmalat Finanziaria SpA, an Italian food giant started out as a family business specializing in dairy products. It was founded in 1961 by 22 year old Calisto Tanzi, who discontinued his studies to expand his father's sausage and cheese shop. It began as a small pasteurization plant in Parma and further expanded into cheese, yoghurt, cookies, fruit juice and ready-made sauce production that are under different names in each country. They were the ones to produce the world's first shelf stable milk (tetra pack) which became an instant success.

This company, headquartered at Parma, Italy has expanded from 6 into 31 countries across six continents in 1990 and so was listed on Milan Stock Exchange. It was the eighth largest industrial group and contributed to 0.8% of the country's GDP. Around 36000 workers and 6000 dairy farms depended on Parmalat.

The company had to change its external auditor from Grant Thornton to DeLoitte and Touche in 1999 as Italian law states that changes in audit firms has to occur every nine years though the previous auditor can be consulted for concerns related to the firm. This was the main reason the scandal came to light.

In 2003, the firm tried to raise €300 Million in the form of bonds and was severely penalized. Hence it was under increased scrutiny of the investors as it was heavily indebted and capitalized. This was one of the very first indications of the crisis situation that was prevalent. Also doubts were raised by the Deloitte & Touche accountant regarding the €478 Million investment made in a Cayman Islands-based mutual fund, Epicurum (represented by a law firm, Zini & Associates).

The departure of two Chief Financial Officers in a span of six months and the increasing debt level created major concern amongst the investors and analysts. Analysts were puzzled that Parmalat was sinking in its core business inspite of having liquid assets of €4.2 billion.

to be continued ... ... ...

 

[Asterix]

Globally the name Grant Thornton
Will forever be associated with Parmalat
Not for milk products but for
Europe's mother of all accounting scams

Moral of the story?
Do not take anything at face value
Just 'cos it is uttered by famous
Person, firm, brand, you name it

If I free go thro' those accounts
With a fine comb
But since this is unpaid work
Quite low priority


On 14 December 2003, the company's inability to recur its stated cash of roughly $3.95 billion in assets (under Bonlat subsidiary, Cayman Islands) from a Bank of America (BOA) document (in a New York account) for the payment of a bond led to the discovery of a hole of $14 billion in its accounts. This document was scanned, added to another document having a $4 billion with the same bank and further passed through a fax machine to maintain the authenticity. The bank reported it as a falsified document.

This alleged accounting fraud forced the founder and chairman of Parmalat, Calisto Tanzi to resign under pressure. Further the responsibility of the management was handed by the Italian banks to Enrico Bondi (who had an earlier experience in rescuing Montedison Food and Chemicals Groups from its bankruptcy) who proposed for the debts of international lenders to be converted into stock so they could have a voice in the firm's directions.

The Italian government's initial promise to bail out Parmalat was deftly withdrawn. Instead some emergency bankruptcy legislations were enacted to shield the company from its creditors, thus aiding the firm to restructure and continue its business swiftly. Three days later the company was named insolvent and eligible for bankruptcy. Hours later the Parmalat founder and chairman, Tanzi was detained on criminal association suspicion. Two investigation teams probed into the firm's books to see how the firm was able to run its business based on the fake financial statements and the bank's role was probed by the Italian financial police, the Manhattan District Attorney and the US Securities and Exchange Commission (SEC).

Parmalat had made many acquisitions mainly in North and South America which led to large bank debts primarily through BOA, Citicorp, and JP Morgan Chase. Initially these debts were covered by high interest swap derivatives and later on from the off shore shell companies like Citibank subsidiary through falsely created bonds to create liquidity in its books. These illegal activities started when Parmalat's stocks went public.

Grant Thornton suggested Parmalat to use spun-off concerns (false accounts) so that illicit payments owed to the firm by the subsidiaries could be recorded unknowingly by DeLoitte and Touche firm. This loophole in the law enabled it to generate fake profits for the firm.

http://www.ukessays.co.uk/essays/accounting/parmalat-accounting-scandal.php

 

[johnny333]

Read somewhere that the external auditor lacks evidence to form an audit opinion in certain areas, it's a qualified report I think. But it is not pervasive.......and my friend told me if the auditor finds any wrong doing so great........they can excuse themselves from the audit engagement.

If there is lack of evidence, it's only an indication but not conclusive...... so IMO, they have no solid grounds to report CPIB.

Unless an auditor has evidence that a client is acting against public interest or committed an act against the law.

If I was running an audit company in Spore I would avoid angering the PAP regime. Maybe that's why Spore has such a clean image

 

[tioliaohuat]

"The statement and remarks by the Ministry of National Development (MND), in response to the audit report of the Workers’ Party (WP) town council, have raised an important issue with regards to the MND’s fairness in dealing with town councils.

Addressing the issues raised by the MND, Ms Lim said:

“We do understand the auditors’ plight, as there were information gaps that existed at the handover after the General Election 2011 which to date are still not filled. “

“At FY 2011, the auditors had tried to request information from former auditors, unsuccessfully. Repeated attempts by the Town Council (TC) to obtain information from the former Managing Agent (MA) and government authorities, such as asking MND / the Housing and Development Board regarding $1.12 million which the PAP-run Aljunied TC had recorded as receivables from the Citizens Consultative Committees (CCCs) for Town Improvement Projects, did not yield answers.

“Attempts in FY 2012 to get the information were also unsuccessful.

“Unless those agencies with the required information furnish them to the TC, it is likely that information gaps will remain and the accounts will continue to be qualified every year. In this regard, we note that MND could well be the best party to assist the TC to resolve some of the key information gaps.”

Ms Lim’s statement reveals one important thing – that the former auditors and Managing Agent of the former PAP-led Aljunied Town Council have, apparently, not provided the information sought by the WP town council in order for it to rationalise or reconcile the accounts.

Further, Ms Lim’s statement also reveals the role the MND and HDB played in this latest saga – that either or both of them have failed to assist in the matter in any meaningful way.

Indeed, Ms Lim called for the ministry to help resolve the matter.

“As MND has expressed its concerns over our accounts, we seek its assistance in resolving the issues raised by our auditor, by helping us verify and confirm the various opening figures handed over from the former Aljunied TC. We also welcome any audit by MND which it deems necessary.”

The ball is now in the MND’s court.

This latest development between the authorities and the WP is disappointing because of the way the PAP Government has chosen to politicise the matter, instead of helping to resolve the issue for the sake of residents.

The government-controlled media too are not helping by making repeated “insinuations of impropriety” on the part of the AHPETC.

After what was a bitterly-fought contest during General Election 2011, where the WP team dislodged the PAP team from Aljunied GRC, former PAP MP Cynthia Phua promised a “smooth handover” of the town council to the WP.

‘’We will do a proper handover,” she said, a week after Polling Day. “We will ensure that all the existing contracts that we have are handed over to the new management properly.”

She even dismissed fears that the PAP may sabotage the incoming WP team.

“The PAP is not that way,” Ms Phua said then. “It has always been a fair and responsible party. We are direct and transparent in our actions.”

She promised:

“Have faith in us. It’s our responsibility to the residents of Aljunied GRC to ensure a smooth handover.”

But it has thus far been anything but a “smooth handover”, with disputes between the WP town council arising not only with the former PAP town council, but also with the People’s Association (PA), the constituency’s grassroots organisations and merchants associations – which are all headed by or involve PAP members – and even with the Housing and Development Board, shortly after the elections when the HDB leased out some 26 plots of land in Aljunied GRC to the PA.

In 2012/2013, there was also the saga involving the termination of computer system service by the PAP-owned company, Action Information Management (AIM). It was then revealed that AIM was a company fully owned by 3 former PAP MPs, and which had provided the accounting system to all PAP town councils.

The issue raised a huge controversy, with many Singaporeans questioning the relationship between the PAP town councils and AIM. It resulted in Prime Minister Lee Hsien Loong, who is also the secretary general of the PAP and the chairman of the PA, calling for a review of the transaction between the PAP town councils and AIM.

With regards to the audit issue of the Workers’ Party town council, the WP would have to furnish its explanation on the outstanding matters. At the same time too the MND should be fair and hold to account the former PAP-led ATC as well, and perhaps instruct the Managing Agent of that town council – which is believed to be CPG Facilities Management – to cooperate and handover the relevant information required by the present town council.

Why has not the MND asked the director of CPG, Jeffrey Chua, who also happened to be the town council’s general manager then, to provide the necessary information to the WP town council?

Surely, the resolution of such issues does not require so much back and forth, and loudhailing over the media.

Aljunied residents, and Singaporeans in general, deserve much better than this constant fault-finding by the PAP.

Let’s focus on more important things, shall we?"

What happened to PAP’s “smooth handover” promise? | The Online Citizen
theonlinecitizen.com

The statement and remarks by the Ministry of National Development (MND), in response to the audit report of the Workers’ Party (WP) town council,...

 

[WongMengMeng]

......................

“At FY 2011, the auditors had tried to request information from former auditors, unsuccessfully. Repeated attempts by the Town Council (TC) to obtain information from the former Managing Agent (MA) and government authorities, such as asking MND / the Housing and Development Board regarding $1.12 million which the PAP-run Aljunied TC had recorded as receivables from the Citizens Consultative Committees (CCCs) for Town Improvement Projects, did not yield answers.

“Attempts in FY 2012 to get the information were also unsuccessful.

“Unless those agencies with the required information furnish them to the TC, it is likely that information gaps will remain and the accounts will continue to be qualified every year. In this regard, we note that MND could well be the best party to assist the TC to resolve some of the key information gaps.”

Ms Lim’s statement reveals one important thing – that the former auditors and Managing Agent of the former PAP-led Aljunied Town Council have, apparently, not provided the information sought by the WP town council in order for it to rationalise or reconcile the accounts.

Further, Ms Lim’s statement also reveals the role the MND and HDB played in this latest saga – that either or both of them have failed to assist in the matter in any meaningful way.

........................

First win the game for hearts and minds of the People. Then, at appropriate time (like close to GE) take legal action. Though, the impartiality of Courts in Sinkieland may be ... ... ahem ... ... you know what I mean, it is a game of brinkmanship and legal action is just the means to an end and not an end in itself. Bottom line is always to win hearts and minds of the People.

Mandamus is a judicial remedy in the form of an order from a superior court, to any government subordinate court, corporation, or public authority—to do (or forbear from doing) some specific act which that body is obliged under law to do (or refrain from doing)—and which is in the nature of public duty, and in certain cases one of a statutory duty.

For more see this: http://en.wikipedia.org/wiki/Mandamus

 

[winnipegjets]

WP TC getting sabo in so many ways. Spending so much time putting out fires started by the PAP and its cronies. Government department and ministries are being used to politically sabo the WP TC.
While it is hard work and eating into the resources of the WP team, the WP team has the opportunity to show sinkees how desperate this government is to cling on to power and the corrupt use of taxpayer's money to fund the PAP war against the opposition.

 

[ChaoPappyPoodle]

Read somewhere that the external auditor lacks evidence to form an audit opinion in certain areas, it's a qualified report I think. But it is not pervasive.......and my friend told me if the auditor finds any wrong doing so great........they can excuse themselves from the audit engagement.

If there is lack of evidence, it's only an indication but not conclusive...... so IMO, they have no solid grounds to report CPIB.

Unless an auditor has evidence that a client is acting against public interest or committed an act against the law.

A major issue is the handing over of accounts from the PAP to WP. Without a proper and complete handing over of accounts there will always be issues. The PAPzi machinery will have issues going to court as their own side seems to be a major cause of the problems. What they intend to do is to smear the alternative parties. Going to court is too risky as they woo will be implicated.

 

[Clone]

well...SDP ran 3 town councils in the 90s. proven failure ?

exactly. hence i only go for the safer brand names as propagated. :o