With Deloitte Humiliated, A Quick Look At Its Other, Best Known Client

Tyler Durden's picture

HP is about to throw Deloitte under the bus for its epic bungling and lack of auditing of Autonomy, which if HP's allegations are true, and there is no reason to believe they aren't, has been cooking its books for years. But don't weep for Deloitte. It will retain that other, far more lucrative client, the Federal Reserve System of the United States. Surely those numbers could never be cooked. Forget about "Audit the Fed" - it is time to start thinking about "Auditing the Auditors of the Fed."

Source: Fed

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Clashfan's picture

You ask, "Can the Gods be such fakes to allow the devil to be God in their places? Or is it a preordained scheme to fool the peope to head for hell?"

I answer that a Luciferian system is in charge.

fuu's picture

I was wrong a few weeks ago when I said peak farce was near, I see now we have a long way to go still.

Rainman's picture

The Big 4 Bagmen have all gone Sgt Shultz...they know nooothing ! ....the truth is not listed as one of their duties. E&Y and Lehman's Repo 105 come to mind. Continue to not bite the hand that feeds you.

Gloeschi's picture

What are "Government Auditing Standards"? Can I have them, too?

Quinvarius's picture

I declare I have 10 billion dollars and I would like to open a line of credit against it!  All I need is for these guys is say it is so for a 10% cut.

Jr Deputy Accountant's picture

You're misunderstanding the purpose of an audit.

Not to mention that the Federal Reserve writes its own accounting rules loosely based on GAAP. No other client has that luxury. Audits do not exist to detect fraud, they exist to provide reasonable assurance that the financial information presented can be relied on by investors. Not absolute assurance (that would put EVERY auditing firm out of business). Who invests in the Fed?

LongSoupLine's picture

so a $5-6 billion mistake (50% error) is reasonable assurance?

 

Who invests in the Fed?...why, the middle class of course.  Albeit, not by choice nor chance of profit.

machineh's picture

Who invests in the Fed?

The folks with $1.483 trillion of reserves at the Fed might like to cash or transfer those balances some day.

As might the foreign central banks with $3.193 trillion in the Fed's off balance sheet custody account.

http://federalreserve.gov/releases/h41/Current/

These sums exceed the GDP of most countries. 

Papasmurf's picture

CNBS: "I'm a buyer of HP at this price"

kevinearick's picture

there's a running joke among MBAs that goes: what's the difference between an accountant and a lawyer...

my response was one is a riser and the other is rung, on an escalator to a cliff.

robnume's picture

This is fucking great! I hope the chickens come home to roost! My mother worked for Touche, Ross, Bailey and Smart for many years. She was at the executive secretarial level and knows MANY secrets about them, which she imparted to me over the years. It was from my mother that I first learned - at age 8 - what a "holding company(ies) was. Jump Fuckers, Jump!!

No Euros please we're British's picture

Nah, Delloite are on the level. They audited the German gold held by the Fed didnt' they?

orangegeek's picture

Not Deloitte and Touche, but Toilet and Douche.

 

Could you imagine "check the checker" legislation?  Who wins?  Toilet and Douche.

 

Who pays for it?   Every audited company out there.  Sarbox was bad enough.