Thursday, August 11, 2011

Independent Audit

I read again about another entity that has been ripped off by its own employees.  Here's a wake up call to all employers -- chances are your employees ARE really ripping you off.  WHY are they ripping you off?  The answers are as varied as the types of rip-off involved.  Still, the ultimate responsibility is the governing board and chances are none of the board members actually take the time required to properly oversee what's really hapenning on a day to day basis (much like our government).  This is where money mismanagement runs amok with everybody involved, but nobody is ever personally responsible. 

So, the board (or governing body or business) delegates their fiscal responsibility by hiring an "independent auditor" to do what they should be doing themselves.  The problem now is that the hired 'independent auditor' has NO clue to the true operations and dares not ask for fear of looking stupid and incompetent.  The 'independent auditor' prostitutes himself by slapping a seal of approval on a pile of shit he does not understand and other management lies.  Chances are in the 'independent auditor''s' favor the findings will not get challenged.  Talk about gambling. 

On the otherhand, the ethical auditor renders true reports to his findings, and asks questions that may appear stupid on the surface.  Chances are that the ethical auditor points out areas of weakness and problems.  The governing board does not want to deal with potential problems, so the ethical auditor gets fired because the 'board' is not being told what they want to hear.  A new 'independent auditor' then gets hired to gloss over gross mismanagement and render an 'official' report that all is well.

Everybody is happy until shit hits the fan.  Now it's the blame game.  Apply same principle to our any large pool of money or government agency.  The truth tellers get silenced and banished. 

No comments: