[LINK] And this man would be treasurer?!
jwhit at janwhitaker.com
Fri Aug 20 14:56:41 AEST 2010
Hockey's spruiking of 'audit' questioned
Peter Martin ECONOMICS CORRESPONDENT
August 20, 2010 - 3:00AM
THE accounting firm that the Coalition says audited its election
costings has been accused of breaching both auditing and ethical
standards in a complaint to be lodged with the Institute of Chartered
''If they had produced a report like this on a prospectus, they would
be in trouble because it would be an offence under the Corporations
Act not to comply with relevant standards,'' said Professor Bob
Walker, of the University of Sydney, a 40-year member of the
institute who will lodge the private complaint.
''But as this does not fall under the Corporations Act, it is a
matter for the profession.''
Australian Auditing Standard 804 requires an auditor to ''obtain
sufficient appropriate audit evidence as to whether management's
best-estimate assumptions on which the prospective financial
information is based are reasonable''.
The one-page letter from WHK Horwath attached to the Coalition's
costings released on Wednesday states the firm relied ''on the
The standard requires auditors to investigate whether ''all material
assumptions are adequately disclosed, including a clear indication as
to whether they are best-estimate assumptions or hypothetical assumptions''.
The costings document discloses no assumptions.
The firm did not assert in the letter that it had conducted an audit.
It said it had been engaged ''to review the costings estimates
prepared by the Coalition''.
However, in spruiking the document yesterday the shadow treasurer,
Joe Hockey, repeatedly described it as an audit.
''We have the fifth biggest accounting firm in Australia auditing our
books and certifying in law that our numbers are accurate,'' he told ABC TV.
''This is an audited statement,'' he told ABC radio.
The code of ethics requires accountants to endeavour to make sure
clients and others do not misinterpret their work.
Geoff Kidd, one of the principals of WHK Horwath who signed the
letter endorsing the Coalition's costings, said: ''We provided one
document and we believe it speaks for itself."
Christine Jubb, of the Australian National University's National
Centre for Audit and Assurance Research, said: ''Joe Hockey is
playing fast and loose, there's no doubt.''
This story was found at:
Melbourne, Victoria, Australia
jwhit at janwhitaker.com
Our truest response to the irrationality of the world is to paint or
sing or write, for only in such response do we find truth.
~Madeline L'Engle, writer
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