Many posts about short selling not being illegal and raising questions why a small firm consisting of 25 years old are auditing the company, themselves fail to answer whether it is illegal for a small firm of 25 year old auditing? Is there any law that says only big 4 can audit big companies? Hindenburg itself is a small research company with less than 10 employees. Then there are people who are singing praises for how the big 4 have ideals and best hiring practices. Lets not forget the erstwhile part of big 8, Arthur Anderson, which had 28,000 employee and failed to properly audit both Enron and Worldcom, making American pension funds loose some 20,000 crore rupees directly. Here is famed another one big 4, KPMG: The USA’s accounting watchdog has fined KPMG $7.7m and sanctioned four of its auditors over a series of international offences. The watchdog claimed hundreds of
KPMG’s UK staff cheated on exams, including the tests auditors are required to pass to maintain their professional certifications. The US Public Company Accounting Oversight Board (PCAOB) fined KPMG $2m over claims the firm’s UK business failed to detect or prevent the
widespread sharing of answers from 2018 to 2021. https://www.cityam.com/kpmgs-uk-busi...ating-scandal/
Ernst & Young, one of the top accounting firms in the world, is being fined $100 million by federal regulators after admitting its employees
cheated on their ethics exams. Ernst & Young also had internal reports about the cheating but didn't disclose the wrongdoing to regulators during the investigation. The SEC said that the cheating went on for many years, going back to 2012.
https://www.npr.org/2022/06/28/11080...n-ethics-exams
KPMG has settled allegations that they discriminated against Asian job applicants in their Short Hills, New Jersey office location. They settled these allegations with the U.S. 80% of PwC employees are under the age of 36 and there have been lawsuits about age discrimination.
For ten years, auditors at Ernst & Young certified Wirecard's annual financial statements. They failed to uncover that a network of fraudsters were using accounting tricks to write billions into Wirecard's books over several years. Hundreds of Wirecard employees lost their jobs, and thousands of investors lost a total of 40,000 crore rupees. Why didn't the auditors recognize the fraud?
21 Scandals, Settlements and Corporate Crimes of Big 4 Accounting Firms in 2019. Yes only in 2019.
https://facelesscompliance.com/7604/...-firms-in-2019
Read more about the big 4 business practices in detail here. Data from the Public Company Accounting Oversight Board, the U.S. auditing regulator, suggests that auditing firms fail at an alarmingly high rate, with 20% of the Deloitte audits examined deemed inadequate, along with 23.6% at PwC, 27.3% at EY, and 50% at KPMG.
https://www.whistleblowers.org/high-...ounting-firms/
I mean who can forget the bright employees of big 4s, PwC in this case, when they handed over wrong academy awards in 2016. Look how bright their employees are who can't even hand over proper envelopes.
In India, Deloitte used to audit IL&FS and failed miserably and whistle blowers blamed Deloitte, its sole auditor till 2016 of being in cahoots.
Satyam's audit was done by PwC and what happened for years, the books were cooked and PwC had it jaws on floor when it was banned for a year.
IFIN scandal done by KPMG, for which its affiliate was banned for 5 years. Then comes E&Y affiliate Batliboi and co. LLP, which is banned by RBI.
Please avoid making sweeping statements about Big 4s hiring and auditing practices.
I have high hopes from educated users here but they go into moralistics rants instead of looking or understanding the bigger picture. Creating infrastructure needs trillions of rupees. How is government going to raise it? This is where corporates come in. World bank or IMF have quotas and so does Asian development Bank. Why do you think Indian government needed to be in SCO run by China or create BRICS, to create easy inflow of required funds. West is not going to provide easy and cheap loans or handout cash. We have to be economically viable. Adani's are not raising money from Indian banks, they are raising it globally through bonds and securities. These are through lawful means by issuing bonds and pledges. Adani's total borrowing from Indian financial institutions is not more than 70,000 crores(10 billion dollars) i.e around 40% of its total debt. Then We have third class people who want ever increasing MSP and do not care about rising costs that they pass. USA helped fuel its economy on child labour for 100s of year by paying them little and making it lawful for corporates to employ young person as low as 14 years of age.
Adani is not someone who has no assets. They are a high asset company with ACC alone worth 6-8 billion dollars. What do you think suddenly Mundra port would go useless? The transmission line contracts that they have would remain unpaid by the state governments or GoI? These are assets and Adani has hundreds of them. Adani's do not have telecom companies that are high risk or airlines which burns through cash which both Birla or Tata have.
The question is then why would a notorious short seller who themselves are under investigation by their countries justice department publish a dubious report? We need money to fuel our growth, trillions of it. Would you like Govt-sec being traded and shorted which in turn could fuel inflation and that too after covid? Why South Korea freed corrupt Samsung chairman and why it backs Hyundai, because it helps them in growth. Do you think Dow and 3m or PG&E, even after killing and maiming lakhs of their own countrymen are running without American sovereign support? The fundamental thing is money and how to get it. Is USA SEC sleeping when the crypto scam is happening and are they not having dinner and being in bed with corrupts? Goldman sachs and BCG mangers are being given plum posts in us gov for decades and they in turn write the rules. US has announced a trillion dollar infrastructure fund, they can print it out of thin air but maybe they want their own capital out flow restricted to some other country like India.
Now a new name has surfaced, investor Bill Ackman, not many may that he works closely with short sellers especially notorious Citron capital. Just to ruin a company, he spent over 50 million dollars in 2015, lied about the company, for which he is still under American FBI investigation because he was short 500 million dollars on that company and with the help of Bloomberg he did it. The same Michael Bloomberg who he financed for American Presidential elections few years later.
As someone posted Patriotism is the last refuge of .... , understand that it's not a gotcha moment. The context in which Samuel Johnson said it was about a political Party known as
"Patriot party"during his time. Its use though has been historically diluted and deformed from how it was said and meant and this is what is happening now. A tidbit, before his "dictionary" i.e.1775, English language didn't had formalised spellings.