Sam E. Antar Profile picture
Former Crazy Eddie CFO, former CPA, and a convicted felon. Forensic accounting sleuth. Also, teaches law enforcement and professionals how to catch the crooks.
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16 Oct
Crazy Eddie Memoirs: None of the BIG 4 accounting firms are any good when it comes to so-called audits. In fact, there is NO SUCH THING as audits of public companies. The use of the term "audit" is false, misleading, and gives investors a false sense of security. [thread 1/4]
At best, so-called audits as they are conducted today are limited reviews of financial reports similar to the grammar/spellcheck feature on MS Word. [thread 2/4]
A major part of the problem with auditing is the culture of the accounting profession. For example, the words "audit target" DO NOT APPEAR anywhere in the professional standards. Companies are called "audit clients." [thread 3/4]
Read 4 tweets
24 Nov 17
Tip for Fraudsters: You get a bigger bang for the buck overstating income and overpaying taxes as public company than understating income and evading taxes as a private company. 1/
2. For example, assume a 40% income tax rate. If you understate earnings by $1 million, you save $400k in taxes.
3. If you inflate income by the same $1 million, you overpay $400k in taxes which results in an inflated net income of $600k.
Read 10 tweets