Follow Us

Follow us on Twitter  Follow us on LinkedIn
 

29 October 2012

IFAC/Ball: €133bn in gold says take federal auditing seriously


Default: Change to:


In his letter to the FT, IFAC Chief Executive Ian Ball addresses the causes of the financial crisis in connection with accounting and auditing by governments.


Mr Ball wrote: “It came as a real surprise to learn that the German government’s auditors had not done a physical check of the Bundesbank’s gold reserves since at least 2002 (“Not one nugget of truth in doubts over gold stock, says Bundesbank”, report, October 24). Put that finding alongside the €55 billion (2.6 per cent of gross domestic product) accounting error a year ago and the German government’s resistance to moving away from its archaic cash-based system of accounting.

It is difficult to imagine a scenario that would concern an auditor more than being unable to confirm the physical existence of a €133 billion asset. This situation again draws attention to the dangerous inadequacy of accounting and auditing by many governments.”

Full letter



© Financial Times


< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information



Add new comment