Sarah Johnson, CFO.com | US
March 5, 2009

Concerns Ongoing

It is utterly ridiculous that auditors should be expected to provide going concern indications in their opinions. Auditors are responsible for ensuring that there is clarity in the financials, not interpreting those financials in assessing whether the company is likely to continue to exist. This is the responsibility of investors and readers of financial statements.

How many of you actually know auditors that are really qualified in assessing whether companies can continue to survive? Our auditors don't understand our business, can't take the time to understand the reasoning and rationale for decisions, and do not take part in discussions about strategy or direction. It is too much to ask of auditors to make them into business forecasters.

Posted by Dave Parsons | Mar 7, 2009 12:24 PM ET

Job Description

Seems clear to me that FASB is leaning toward making "the ability to effectively utilize an advanced psychic skill-set" a new part of an auditor's job description.

Really. 12 months? How about 12 weeks; or maybe even 12 days? Both alternatives could be overly optimistic for what's down the road in today's world. Even 12 hours can look like the distant future by today's standards.

For GM, though, no forecast was really ever necessary. Because we should have seen this coming for years. Viable? Hopes for the lack of footnotes about being a "going concern"?

You must be kidding.

Posted by VERNON CRUMRINE | Mar 6, 2009 11:20 AM ET

Ongoing Concerns

When ongoing concerns overtake going concerns, concerns go.... The emerging debate about how to assess business risks offers great hope to this observer that new ground can finally be broken. Perhaps, managements should be required to present an assessmnet of the past five years' operations to shareholders in no more than 600 words, as part of the annual report and the proxy. This would require the soul-searching that too many managements purposely avoid or deny until it is too late. Simultaneously, it would shine bright light on those CoBs, CEOs, CFOs, EVPs, and VPs who could prepare such an analysis in less than an hour, with no more than two other people reading it and commenting on it in another hour or two. Such is the essence of good management, even those in trouble. Espial.

Posted by Robert Boyd | Mar 6, 2009 10:42 AM ET

Going Concern

I am disgusted by the reaction to the going concern opinion. This has been known since the first bailout and to be "shocked" by the obvious is beyond me. Grow up Wall Street.

Posted by John Dagnon | Mar 6, 2009 10:31 AM ET