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        > Posted by: Tusker -- SRF/Enron -- 1/18/02		 New Topic    Add Reply

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srfwalrus
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(1/19/02 7:22 am)
Reply 		Posted by: Tusker -- SRF/Enron -- 1/18/02
Tusker -- SRF/Enron -- 1/18/02
pub78.ezboard.com/fsrfwal...D=74.topic

Most people are probably aware of the developing scandal involving Enron and the Andersen accounting firm. One of the key issues at the heart of this scandal is the conflict of interest inherent in accounting/auditing firms also providing consulting services to their accounting clients: if they blow the whistle on “creative” bookkeeping and other questionable financial practices they may lose not only the accounting income but also the extremely lucrative consulting income from that client.

This very problem exists at SRF: Ernst & Young has been the SRF financial auditor for many years. In 1995, over the protests of SRF IT management, the bad ladies hired E&Y to perform IT consulting in addition to financial auditing. SRF IT managers repeatedly raised the issue of the unsuitability and impropriety of this arrangement, but to no avail. The bad ladies continued to use E&Y as IT consultants through 1998, and may well continue with this conflict of interest arrangement to this day. E&Y auditors require SRF to pay E&Y consultants to perform security audits of the SRF computer systems. This is bad enough, but the fact that IT management never receives the security audit reports only makes it worse. Several of the grossly overpaid consultants working on the dreaded PeopleSoft project came from E&Y to the SRF project because of the incredible opportunity to milk the SRF cash cow. The IT managers who raised the alarm were viewed by the bad ladies as disloyal and were all disposed of, monks and employees.

So, take notice of Enron and Andersen, and give some serious thought to the strange relationship between SRF and Ernst & Young. Whether there is a scandal here involving “creative” bookkeeping I can’t say, but the enabling environment has existed for years.

The core issue here is that when people become lost in money, as the bad ladies have, everything else goes: sense of ethics, discrimination, kindness, love, ... No, SRF is not Enron. But underneath the surface differences, much is the same.

Be very careful about giving SRF and the bad ladies your money, or supporting the clueless, vindictive, and possibly illegal things they do.

SRF Walrus: Some of the responses are just as revealing, so read the whole thread if you find this interesting.

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