The Arthur Andersen CPAs/Enron and WorlCom Scandal should
act as an example to us. Watch out for Auditors who hold divided loyalties.
Today's financial scandals are a hard reminder that Independence is a must if audits and financial reports are to be trusted. What really happened with Andersen CPAs is that they became too cozy with the board of Enron. The CPAs/auditors really compromised their independence and misrepresented the truth to the shareholders so the management of Enron would continue the payment of their weekly fees of $2Million. This is a prime example of divided loyalties. In the race at hand, I have been very carefull not to solicit help and support and not to accept any financial contributions from county elected officials. For to do that would have put me in a compromising position in fact and in appearance. If an auditor is handpicked and financially supported by the board of directors ( in this case the Board of Supervisors ) he/she can never be considered independent by the public. Therefore he/she runs the risk that the public ( the voters/shareholders of the County) may not trust the financial statements issued by his/her department. And if the situation arose where he/she would have to blow the whistle in order to protect the public's interest, he/she will find himself in a very uncofortable position. It is very hard to blow the whistle on someone that has bankrolled your campaign.
Therefore we should be wary and vigilant of cozy positions between any candidate and elected officials.
|
