Allegation: Fannie Mae & Freddie Mac Cook Books


R

Robert Cohen

These semi-private/semi-public mortgage packaging-standardizing
agencies/companies allegedly have TRILLIONS of dollars worth of securities
responsibilities

I have no fluent conception of how crooked manipulations of the books work, no
more than I could cogently explain the workings of Enron, Worldcom, etal

Several articles in USA TODAY etal are somewhat illuminating in explaining the
complexities involved, but I majored in polisci and philosophy--not in
accounting

It appears that allegedly that some FNMA executives have finagled their books
in order to reap bonus incentives; though I haven't read of any pertinent
indictments for frauds

Perhaps because of the massive, unprecedented re-financings of mortgages, the
inherent complexities-confusions are also conveniently facilitating whatever
cheating that has been going-on

Many if not most Senators & Representatives & laypersons (such as me) wouldn't
know a sophisticated accounting irregularity if it bit us on the digit

It is up to ye accounting professionals to please keep the nation from
financial collapse by early-on blowing whistles (such as tipping-off the press
& media) about mal-practices that seemingly have catastrophic potentials
 
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T

Tippy

--

Robert Cohen said:
These semi-private/semi-public mortgage packaging-standardizing
agencies/companies allegedly have TRILLIONS of dollars worth of securities
responsibilities

I have no fluent conception of how crooked manipulations of the books work, no
more than I could cogently explain the workings of Enron, Worldcom, etal

Several articles in USA TODAY etal are somewhat illuminating in explaining the
complexities involved, but I majored in polisci and philosophy--not in
accounting

It appears that allegedly that some FNMA executives have finagled their books
in order to reap bonus incentives; though I haven't read of any pertinent
indictments for frauds

Perhaps because of the massive, unprecedented re-financings of mortgages, the
inherent complexities-confusions are also conveniently facilitating whatever
cheating that has been going-on

Many if not most Senators & Representatives & laypersons (such as me) wouldn't
know a sophisticated accounting irregularity if it bit us on the digit

It is up to ye accounting professionals to please keep the nation from
financial collapse by early-on blowing whistles (such as tipping-off the press
& media) about mal-practices that seemingly have catastrophic potentials
Perhaps that is where the problem lies. Inside gov't, there is not problem
for the auditor to blow the whistle. CPA firms can't do that, at least to
the same degree. Discussion?
 
K

KT

Tippy said:
Perhaps that is where the problem lies. Inside gov't, there is not
problem
for the auditor to blow the whistle. CPA firms can't do that, at least to
the same degree. Discussion?
Surely the crux of it is a need for legislation that strengthens
what auditing actually does. The process testing audit is
clearly useless, as it pretty much relies on the people preparing
the accounts, not indulging in intentional deception which
never the less follows a precise and well documented
process. The audit must be the tool to ensure that we
don't have to rely on individuals within or without a
company having to "stick their neck out".
 
T

Tippy

--
Tippy
KT said:
Surely the crux of it is a need for legislation that strengthens
what auditing actually does. The process testing audit is
clearly useless, as it pretty much relies on the people preparing
the accounts, not indulging in intentional deception which
never the less follows a precise and well documented
process. The audit must be the tool to ensure that we
don't have to rely on individuals within or without a
company having to "stick their neck out".
Seems that for SEC companies, that first step has been taken, but by the
government. If the AICPA doesn't step up to strengthen fraud steps and
reporting, the Government may again take a more aggressive stance than the
AICPA, which will weaken it further.
 
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Z

Zergrinch

The Accounting profession is in a very awkward situation, come to think
about it.

Who is paying for the CPAs' services?

The Company, of course.

And we have shareholders and government agencies breathing down the CPAs'
necks, demanding that they report all misdeeds of their client or face
severe repercussions.

I dunno about you, but I'm sure not hiring anyone to beat me up! :)
 

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