It says here that Manchester City FC overstated its income over the years of its current ownership by some £855 million.
I'm wondering where this reality leaves Man City's auditors. In recent years it's become normal for major companies to change auditors. But will that allow a departing audit firm to evade its responsibilities in having given the "true and fair" statement in previous years ?
I'm guessing that only Big 10 audit firms (or else a firm with special expertise in auditing of major sports clubs) would have the capabilities to deal with the various accounting and international tax law issues arising in such work.
And I'm remembering Enron and Arthur Andersen.
I suppose it highlights the moral hazards inherent in the higher professions. Take an honest path, you get a name among the business community of being an outrider for the tax office and struggling for clients. Take a more 'open' approach and you're a wideboy and someone no respectable person would want to be seen trading with.
I'm wondering where this reality leaves Man City's auditors. In recent years it's become normal for major companies to change auditors. But will that allow a departing audit firm to evade its responsibilities in having given the "true and fair" statement in previous years ?
I'm guessing that only Big 10 audit firms (or else a firm with special expertise in auditing of major sports clubs) would have the capabilities to deal with the various accounting and international tax law issues arising in such work.
And I'm remembering Enron and Arthur Andersen.
I suppose it highlights the moral hazards inherent in the higher professions. Take an honest path, you get a name among the business community of being an outrider for the tax office and struggling for clients. Take a more 'open' approach and you're a wideboy and someone no respectable person would want to be seen trading with.
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