This is an interesting idea

In an era where transparency is seen as fundamental to accountability it is inappropriate for the world’s leading auditors to be almost wholly opaque on their operations and to provide no effective reporting on their own activities when they play a fundamental role in the regulation of global capitalism.

To counter the risk that these structures impose on society we suggest that firms organised in this way:
Should be defined as being under common control, and so are single entities for group accounting purposes within the European Unio
Should be licenced as single entities for audit and taxation purposes throughout the European Union

Erm, so, gosh, that would mean that the UK could not control nor oversee the licence of, say, PwC to produce audits, wouldn’t it? Rather over-riding the sovereignty of the UK in insisting upon the standards for such services?

19 thoughts on “This is an interesting idea”

  1. ‘I define secrecy jurisdictions as places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain with that regulation being designed to undermine the legislation or regulation of another jurisdiction and with the secrecy jurisdictions also creating a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so. No one has ever seriously challenged this definition. And there is good reason: that’s because it is true.’

    Hence with such a broad definition the likes of Germany, Norway and New Zealand make it into the TJN list. Just who does he think he is that his opinion should carry more weight than any other saloon bar bore? He appears to be the living embodiment of the Goebbels dictum regarding a lie becoming true by virtue of being repeated often enough…

  2. ‘It’s a journalist’s job to do the shock horror. It’s always been mine to suggest how to put things right. And that’s what I devote much of ‘Dirty Secrets’ to, unlike any other book on the subject.’

    And isn’t society grateful??? – I now have to wade through this third volume of turgid drivel that reads like something the KCNA might consider far-fetched, as I have a mischievous acquaintance that buys me Murphy’s books as a present……

  3. VP

    “Just who does he think he is that his opinion should carry more weight than any other saloon bar bore?”

    Unfortunately for us up here he has attached himself limpet like to the SNP, who are using his snake oil remedies as soma for their support.

  4. BF

    Yes – his rift with Mcdonnell means Labour is off limits sadlly for you guys, so he goes for the next most represented ‘North Koreanesque’ party of size, which is the SNP. It speaks volumes about the lack of intellects within the SNP ranks that he is taken seriously.

  5. he *really* doesn’t understand how the Big 4 work does he? You would think that while he did his articles for KPMG before leaving for whatever reason (*ahem*) he would have worked out that they are all, to a greater or a lesser extent, a string of individual partnerships operating under the same brand. There is no cross-ownership between, for example, PwC UK and PwC Germany, so how can they be defined as being under common ownership?

  6. Flatcap

    Murphy loses all reason when it comes to the Big 4. A red mist descends and his visceral hatred of them takes over. Perhaps a Kevin Spacey-esque KPMG partner once tried to take a nubile Murphy up the Gary over a desk.

  7. @BraveFart – I suspect it’s more likely that he was advised that he was never going to go anywhere on account of being a bumptious argumentative idiot with no people or technical skills, and advised to seek exciting career opportunities elsewhere. Clearly the cognitive dissonance associated with being told he’s rubbish has clashed with his monstrous vanity and he’s genuinely come to believe thet *he* rejected *them*

  8. ‘when they play a fundamental role in the regulation of global capitalism’

    ‘Regulation’ and ‘capitalism’ in same sentence.

    Murphy is a fascist pig.

  9. ‘I define secrecy jurisdictions as places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain with that regulation being designed to undermine the legislation or regulation of another jurisdiction and with the secrecy jurisdictions also creating a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so. No one has ever seriously challenged this definition. And there is good reason: because it is incomprehensible and goes on for ever.

    More realistic.

  10. Should be defined as being under common control, and so are single entities for group accounting purposes within the European Unio
    Should be licenced as single entities for audit and taxation purposes throughout the European Union

    Pitching for EU grant cash?

  11. In an era where transparency is seen as fundamental to accountability it is inappropriate for the world’s leading auditors to be almost wholly opaque on their operations and to provide no effective reporting on their own activities when they play a fundamental role in the regulation of global capitalism.

    Over here, in Trump’s ‘Merica, the world’s leading auditors are subject to peer review on a regular basis. So, their operations aren’t opaque and there is effective reporting of their activities.

    What do woggies do?

    And just for Murphy’s edification… Auditors don’t regulate. They test and report. Good to see that he still can’t quite grasp the nature of auditing or the role of the auditor.

  12. According to Murphy he was told he could make partner but chose not to.

    Well, you stupid fat fucker, every single person who joins just about any firm of accountants is told “you could make partner one day”.

    The reality is that in the Big 4 only about 3% of joiners make it, which means that some very very good people don’t make it. The idea that he could have and chose not to is frankly absurd. Another pathetic invention of an ego so bloated it has stopped him seeing out over his sweaty, podgy cheeks.

  13. DtP it’s similar over here. I think it’s called the Financial Reporting Council. They run checks to keep the audit firms on message. However, since every large corporation seems to get advice from all the firms who are not the named auditor, there is, I suspect, a lot of self – policing going on. Memories of Enron and the arrogance of Arthur Andersen are still in the partnership memory

  14. According to Murphy he was told he could make partner but chose not to.

    Unlikely. He wouldn’t make it into any of the ‘Diversity’ slots. I can’t see how else he would have made it.

  15. as AndrewC says, at the opening speech for new graduates everyone gets told “Well, work hard, keep your nose clean and you could make partner”. I can’t imagine that Murphy’s subsequent appraisals went quite as well as that.

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