PL charge City for alleged breaches of financial rules

Prestwich_Blue said:
I had a quick read through the Financial Reporting Council's review of BDO's conduct in that audit. The issues were much more complex than ours would have been.

Essentially an audit is about managing risk. You can't possibly track every penny in and out so you devise an audit plan to mitigate that risk as far as possible. You work out what is material and what isn't. If a payment doesn't match an invoice by 20p, then you wouldn't care about that.

As an auditor, you'd want high percentage coverage of the largest revenue sponsorship contracts, with decreasing coverage of lower value contracts. So you might dig into all of the highest ten revenue earners, half the next ten and just randomly select a handful of the smaller ones. You'd want to check the contracts fully and ensure cashflow matched the terms of that contract. You'd also want to check that the amounts received had been correctly accounted for and were represented correctly in the accounts themselves.

The issues at NMCM were complex and around contracts where there could be some variability in what revenue or potential losses could be reported. BDO seemingly devised a reasonable audit plan but didn't follow some of those plans through properly, and didn't challenge the management view of these robustly enough.
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Tbh, I dont think you can place much stock in auditors. Most famously, Enron where the red flags were flying at full mast and Arthur Andersen were completely asleep at the switch. Similar with Lehman Brothers (Ersnt & Young) with their highly irregular financing practices that grossly distorted their balance sheet.
 
lasereyes said:
Tbh, I dont think you can place much stock in auditors. Most famously, Enron where the red flags were flying at full mast and Arthur Andersen were completely asleep at the switch. Similar with Lehman Brothers (Ersnt & Young) with their highly irregular financing practices that grossly distorted their balance sheet.
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Long story with some relevance. When I started as accountant it was with a one man firm in Tibb Street mostly preparing accounts from shoeboxes of cheque stubs and invoices. So not actually relevant at all.

Then the firm was taken over by Tansley Witt, a medium sized firm where I was introduced to risk analysis based audits for the first time which basically determined the extent of transaction testing, amongst other things. Quite a strict process which determined the scope and severity of transaction testing on a combination of the most significant transactions with a sample of smaller transactions. I don't remember any cases where the risk analysis and subsequent testing was found deficient.

Then that firm was taken over by Arthur Andersen's and I was introduced to a much more "scientific" (dare I say American) approach to risk assessment which was pretty much designed to reduce the amount of work in favour of depending more on the risk assessment. They were more interested in those bloody doors (if you know, you know) than robust process. That may be an unfair description, it was a long time ago now, but I couldn't believe how weak the system was compared to that I was used to and it was no surprise to me that Enron happened and completely did for Andersen's.

In the meantime, I was spending my last ten years as an audit manager with Coopers where I oversaw risk assessments, process definitions, audit conclusions and opinion approvals from the partners. I even signed a couple of opinions under proxy.

My point is - you can't really say you can't trust auditors. It depends who the auditors are (which firm and which people). After Enron, risk procedures were tightened up everywhere and procedures increasingly standardised. I am pretty sure that BDO, in the case of a high-profile and high-risk (at the moment) client like City, have received enough satisfaction from the Board to support their audit procedures and their "true and fair" audit opinion. If they hadn't, their opinions would have been qualified or they would have resigned.

Or maybe not :) Who knows?
 
ScottSinclair said:
Assume it is to 100% hide the ball from the view of the keeper to potentially wrong foot him. Would be a nice idea to get the ball over the wall though
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nah, i'm sticking with my theory...

the fella who got twatted in the face is a bigmouth who nobody likes.
the coach invented this cock'n'bull idea and talked him into it simply so the taker could knock him out.
the other kneeler was in on it too.
have another look at the quick glance back the taker immediately gives to the fella he's just left sparko on the deck, as if to say, that'll shut you up ****.
 
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bobbyowenquiff said:
The PL finance team is essentially a handful of people in a room. They use external legal advice. They admitted they were “overwhelmed” by the simple APT case. Masters has no qualifications to be a CEO and the PL Board does not seem to scrutinise anything. It is supposed to be impartial but has weaponised its comms team to issue partisan press releases attacking member clubs like Forest, Everton, and especially City. It is totally amateurish. Masters has been exposed again and again at Commons Select Committees. He does not have a clue what he is doing.
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Yes men are amateurish.

If they had intellect they would not be yes men.
 
Now Arsenal lost the Champions League final, and City’s women won the FA Cup, this would be the perfect time to announce the result of the hearings, whatever the outcome. That said, legal things don’t tend to follow the football callendar.
 
Bournemouth Blue said:
Now Arsenal lost the Champions League final, and City’s women won the FA Cup, this would be the perfect time to announce the result of the hearings, whatever the outcome. That said, legal things don’t tend to follow the football callendar.
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Nope. The best time will be after John Stones heads home England's winner in the 121st minute of the World Cup Final. It'll be buried in the World Cup.
 
halfcenturyup said:
Sorry :) Not lived in Manchester for 45 years. Memory going.....
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yeah, you might be good at adding up but there's no excuse for forgetting our history :)

it takes its name from the river tib that flows beneath it,
which has been underground for about 250 years.

images


it is said that the romans gave it the name tib because it reminded them of the river tiber.
 
pepguardiola'smoustache said:
yeah, you might be good at adding up but there's no excuse for forgetting our history :)

it takes its name from the river tib that flows beneath it,
which has been underground for about 250 years.

images


it is said that the romans gave it the name tib because it reminded them of the river tiber.
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Those Romans must have been eating mushrooms if they thought the Tib - rising in Miles Platting - looked anything like the 250 mile Tiber!
 
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