The auditor is chosen by and paid for by the company, and of course the auditor wants to retain the work. it will be interesting to see who carry's the blame for this once the dust settles. Remember there have been similar issues here - ABC Learning comes to mind, and I would not be surprised if similar cases come to light in the next few months. Satyam has offices in Australia, does work for Qantas and others. They had been touted as one of the success stories of Indian IT outsourcing, but alas it seems the business has been built on a mushy foundation of Bulls**t . Perhaps this will cause a few local CIO's to revisit exactly who provides their IT services. ? M
No difference to our banks Modeler. What ever happened to due diligence. Half these finance wankers did nothing. Went on S&P AAA ratings and did didly sqwaut when it comes to checking risk and yet put there hands out every month for their over inflated salaries. And we are all paying for it now and into the near future. Well, finaly a lot of them are falling on their swords. Looks like Maccas is gunna have a lot of finance people serving along with the MBA's. Unfortunately a lot of innocent people have been affected along the way. Hopefully the days of making money without doing anything are over IMO. Anyway I better step down from my soap box. Yep, mentioned earlier Papster. It will never end now. You might get that 430 Scud yet Paps. Actually I should put my hand out and maybe I'll get that F40.
Think you are on to it b27- PricewaterhouseCoopers were tossers years ago - but people kept employing and paying them. Interesting to know who is the up front man in Aus. No doubt is on holiday for a few more days.............
A lot of indian fingers pointing at the auditers. "The big issue here is the auditor, which has not done its job," one Mumbai-based broker said yesterday. "This will call into question all stocks audited by PWC. It will cause them a huge amount of grief." Yeah, QANTAS say things are cool, like no biggie dude! Gunna be a new sheriff in town or just another 'gunna'? Wall Street has not worked, our regulatory system has not worked the way it's supposed to, Mr Obama said. So it's going to be a substantial overhaul. We're going to have better enforcement, better oversight, better disclosure, increased transparency. We're going to have to look at this alphabet soup of agencies and figure out how do we get them to work together more effectively.
Pffffffft, not in this thread! I dont know who Steve Keen is, so I didnt bother clicking in this thread till tonite. Then........I saw people talking about the economy, so I posted that link. Bah, ill take ANY Ferrari at the moment!
No auditor or government regulation can overcome a dishonest CEO and board of directors. Happily dishonest executives do eventually get exposed - it just takes time. The system works, in the USA, Australia and even in India. The Indian outsourcing miracle has always been bulls**t. I've been operating there for 8 years, if you factor in the incredible attrition rates (20-40% annual staff turnover is typical) the cost of skilled staff is the same as New Zealand, yet companies like Satyam charge their people out at half to 1/3rd of NZ professional services rates. Blind Freddy can see that something doesn't add up. Outsourcing reduces costs because the quality is lower, end of story. Now the tide is going out for the international economy, we'll see that many companies have been swimming naked.
You mean loss of value to the USD, which is not deflation. They currently have rampant inflation (the M3 is running at 18% or so, last I heard) which is probably going to result in the USD's downfall. The Bamaman's speech last night does nothing to stop that eventuality. In fact, I think he just made it worse.
to a point, outsourcing to a company who's core competency is vital to your operation is often cheaper because of the scale of size, it is often much cheaper to have a service contract than to employ your own staff where I have seen outsourcing to be extremely stupid is when the outsourcing company then outsources it and then they outsource, then you are getting the lowest possible quality and yet the company is paying good money but you have all these barking dogs in the middle .... I know because I hear these dogs everyday using nefarious means to glean information from the bigger companies with decent resources. I think the funniest instance was when I logged a call for some equipment to be fixed in HP and it went thru 2 sets of outsourcing companies before it came back to ME!! some sweetheart deal gone wrong there
Most amused by report in local Sunshine Coast Daily where 'expert' (building company boss) is exhorting first home buyers to get in quick before they miss out and prices start rising. LOL!
I think he's dreamin and obviously keen to share the dream. Thought this was cute too : A MODERN PARABLE (After reading this you decide what you think the problem is.) A Japanese company (Toyota) and an American company (Ford) decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. On the big day, the Japanese won by a mile. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing. Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion. They advised, of course, that too many people were steering the boat, while not enough people were rowing. Not sure of how to utilize that information, but wanting to prevent another loss to the Japanese, the rowing team's management structure was totally reorganized to 4 steering supervisors, 3 area steering superintendents, and 1 assistant superintendent steering manager. They also implemented a new performance system that would give the 1 Person rowing the boat, greater incentive to work harder. It was called the 'Rowing Team Quality First Program,' with meetings, dinners, and free pens for the rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and bonuses. The next year the Japanese won by two miles. Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money saved was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India. Sadly, The End. Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US, claiming they can't make money paying American wages. TOYOTA has spent the last thirty years building more than a dozen plants inside the US. The last quarter's results: TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses. Ford folks are still scratching their heads. IF THIS WEREN'T TRUE, IT MIGHT BE FUNNY.
You got that email too, eh? Been around in various forms for ages but it must be circulating again as I've seen it on three fora this week.
I just spent 3 months in China looking after my property and trying to buy some commercial stuff. It seems the Chinese have done a deal with the US to hold up the US$, (I can not think of any other reason why the $ is holding where it is) and it will stay like this for some time. Some high placed Chinese bankers I know are saying the next six months will see a strong downturn in the Chinese economy, the stockmarket will fall a good bit further and are predicting the A$ to fall into the low 0.6 cents even possibly into the 0.5 cents to the US$ and possibly further (mainly due to the slow down in China). Most of this to fall in behind the Chinese new year later this month. If they stimulate the internal economy quickly then that would be good news for us over here but at the moment it is slow to take off, and getting Chinese people to spend money is difficult. The Chinese property market is well off the mark from a year ago, But as always "A" class property is still stong. The buildings I am trying to buy have a very healthy list of propective buyers (no shortage of people with money) and I see the price being high for these but still worth the investment. Again good building will always stand the stress in times like these. My Australian property seems to have withstood the situation in terms if what I paid for them and what they are worth now ( buy well in case of a down turn), however I have lost a lot on the exchange rate when I brough the money into Australia so I would like it to get better but I do not think it can. I have stopped listening to these so called experts on TV and the press, after all what is a consultant or an expert, well I guess they are just someone from out of town. Anyone know of any small appartment blocks to renovate for sale (Melbourne area) I am in the market you might say. But then what do I know I am also from out of Town (country actually), maybe that makes me an expert too.
Incidentally during the space race all those years ago the Americans spent a million or so US$ to develop a pen that would write in space, the Russians however used a pencil.
The finger pointing has started. The CFO blames everyone else. ( CFO = Chief Fraud Officer ) http://www.marketwatch.com/news/story/Satyam-ex-CFO-blames-Raju/story.aspx?guid={440C2327-26BC-42B1-9146-68815DADD832}
The good Mr Keene i actually Associate Prof Keene? WTF? http://www.abc.net.au/news/stories/2009/01/16/2467791.htm Giving us pearls of wisdom like "Borrow more, the economy can't stand all this saving and paying debt off stuff". Buffoon.
From the article "We could see the greatest level of deflation in recorded history turning up in the next set of figures, and that really accelerates the debt dilemma that America is already in." I've not heard any proper market economists forecasting CPI based on Christmas discounting, there's probably more in the CPI basket then xmas presents. To get some proper opinions ABC would probably have to pay royalties to reputable economic news sources, Steve Keen the media tramp is a freebie. Speaking from experience, don't ever send any coding work to India, it comes back as if they got some dodgy IT course grads to do it.
I'm still puzzled by this concept that "deflation", which he means as a reduction in the CPI, is a bad thing. The way he uses the term I can't see harming an economy. What's wrong with little Jonny getting 25% off his iPod? Monetary deflation would be a very bad thing (shrinking the money supply) and I believe that is contributed as a major factor in creating the great depression. But most Western economies are printing money like it's going out of fashion at present, especially the USA (it was running at 18% last I noticed). You pay peanuts, you get monkeys.
