Monday, April 14, 2008

Conrad Hewitt = Andrew Fastow?

"Chief financial officers of public companies received new guidance Friday from the [SEC], giving firms more leeway to value asset-backed securities in cases where market prices or other relevant pricing information cannot be obtained. Public companies may use 'unobservable inputs' to value asset-backed securities, but only when actual market prices or relevant observable inputs are not available", WSJ, 31 March 2008.

I kid you not. Would Ed McMahon's "hermetically sealed mayonnaise jar" be an acceptable source of "unobservable inputs"? Mark Olson (MO), what will you do about this? Let me guess: let Big 87654 CPA firms secure "unobservable inputs" when documenting their audit work. Then let them prepare "unobservable" workpapers. Well, MO, is that the plan?

3 comments:

Anonymous said...

IA

I posted your comment on the Social Security fiasco on Jim's website "The Great Depression of 2006"
http://tinyurl.com/267wxu
Hope you don't mind but I thought it was interesting enough that it should "get out there".
I gave you credit and provided a link to your site.

Buzz Saw said...

This is getting fun now.

Independent Accountant said...

This is fun?