PL charge City for alleged breaches of financial rules

Gary James said:
When Utd and LFC had their match fixing scandal United's solicitor was on the panel investigating United! He found the club did nothing wrong and never bothered to interview key people because he 'trusted them'. Football hey?

I go into a lot of detail about it in an article I wrote a while back for subscribers to my website:
gjfootballarchive.com

Match Fixing – Manchester United v Liverpool: A Long Read

Liverpool and Manchester United meet this weekend (17th January 2021) in the Premier League. It's a game that throughout the modern era has been played between two major clubs, hoping for success. This has not always been the case of course and in 1914-15 a notorious game between the two teams...
gjfootballarchive.com gjfootballarchive.com
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Interesting now we know that nothing is now time barred.
 
LeonardoDaVnci said:
No were not operated like that, but it's fundamental to the never ending smear campaign that lies like that are repeated...

the reality is somewhat different...

e.g. From the MCFC Annual Report (2010-2011) [1], the Auditors BDO [2] stated this :-

"Opinion on financial statements

In our opinion the financial statements:

Give a true and fair view of the state of the Group’s and the Company’s affairs as at 31 May 2011 and of the Group’s loss for the year then ended;
Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
Have been prepared in accordance with the requirements of the Companies Act 2006."

So the PL are implicitly accusing BDO (world renowed auditors) of being either incompetent or complicit in false accounting. In addition they are implicitly accusing Etihad Airways accountants (KPMG and Deloitte) of being either incompetent or complicit in false accounting.

Refs

Reports

www.cityfootballgroup.com www.cityfootballgroup.com
www.bdo.co.uk

Audit & Assurance | External Audit | Risk Assurance | Report

Discover our range of Audit and Assurance services that you, your investors and shareholders can trust.
www.bdo.co.uk
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Great post mate
 
halfcenturyup said:
Without wishing to argue the point, not a chance. The auditor has two jobs. First, to make sure that, in their opinion, the accounts give a true and fair view. Second, to cover their arses so they don't get sued to kingdom come if their opinion turns out to be wrong. Not necessarily in that order.

As soon as the leaks came out, they would have been on the phone. And the very next audit would have been strengthened to make sure that, in their, opinion, notwithstanding the allegations, the accounts gave a true and fair view. They would absolutely have looked at the sourcing of the funds to pay the sponsorship, even if it was just accepting a specific and detailed confirmation from the management/board/owner. Clearly, in their view, whatever they did gave them enough comfort to continue giving unqualified audit reports. If they weren't satisfied, they would have qualified the accounts or, more likely, resigned as auditors.

Trust me on this one.
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Facts...
 
Iassel said:
No they are not.

Auditors only review what is put infront of them.
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They arent no but a negative verdict could reflect badly on the auditors

If you think they just look at what is "put in front" of them then you clearly don't have a clue as to what they do and are responsible for

Here are just a part of their duty

Part extract from

https://www.legislation.gov.uk/ukpg...heading/duties-and-rights-of-auditors/enacted

Duties of auditor​

(1)A company’s auditor, in preparing his report, must carry out such investigations as will enable him to form an opinion as to—

(a)whether adequate accounting records have been kept by the company and returns adequate for their audit have been received from branches not visited by him, and

(b)whether the company’s individual accounts are in agreement with the accounting records and returns, and

(c)in the case of a quoted company, whether the auditable part of the company’s directors' remuneration report is in agreement with the accounting records and returns.

(2)If the auditor is of the opinion—

(a)that adequate accounting records have not been kept, or that returns adequate for their audit have not been received from branches not visited by him, or

(b)that the company’s individual accounts are not in agreement with the accounting records and returns, or

(c)in the case of a quoted company, that the auditable part of its directors' remuneration report is not in agreement with the accounting records and returns,

the auditor shall state that fact in his report.

(3)If the auditor fails to obtain all the information and explanations which, to the best of his knowledge and belief, are necessary for the purposes of his audit, he shall state that fact in his report.

(4)If—

(a)the requirements of regulations under section 412 (disclosure of directors' benefits: remuneration, pensions and compensation for loss of office) are not complied with in the annual accounts, or

(b)in the case of a quoted company, the requirements of regulations under section 421 as to information forming the auditable part of the directors' remuneration report are not complied with in that report,

the auditor must include in his report, so far as he is reasonably able to do so, a statement giving the required particulars.

(5)If the directors of the company have prepared accounts and reports in accordance with the small companies regime and in the auditor’s opinion they were not entitled so to do, the auditor shall state that fact in his report.
 
mancboy said:
assuming that is the same as assuming the police say well he said he hasnt done it so we'll just leave it there
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Exactly this. That said, there are ways to manipulate auditors and justify certain accounting treatments that, maybe, could be questionable. Back in the day the French/Swiss group I was working for had a pretty unknown French audit company that the holding company had used for generations. We were their only big account. They didn't want to lose us and so were happy to accept some of our more "creative" accounting. As the group grew we needed an international firm to audit the overseas subsidiaries so C&L, my old employer, were brought in as joint auditors. But they were kept well away from the more "sensitive" areas. At the end of the day, auditing is based on risk assessment: the higher the risk, the more evidence is required and the more severe the audit tests. We always pushed the limits, but never went over them (well, not much, anyway). We had great fun playing them off against each other, though :)

Long story, but my point was this: auditing is based on risk analysis and being investigated by governing bodies and, in the case of UEFA, being found guilty, raises the risk a hundredfold. There is no way the auditors are just accepting what is put in front of them in that situation. They will want to know what is going on and how it affects the true and fair view given. If they aren't convinced by the explanations and information provided by the management/board and they feel the issue affects the true and fair view given by the accounts then they qualify their opinion or resign. True of C&L in our case if they didn't like our creative accounting and felt it impacted on the view given by the accounts, and true of BDO in City's case.

Clearly, BDO think there either is nothing in these allegations, or that there is something in them but they don't change their view on the true and fair view given by the accounts.
 
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