GM Admits Accounts Are Whacked

[salsakingcpa]

http://www.thetruthaboutcars.com/gm-admits...ments/#comments

 

Chapter 11 coming? Do you think if it files chapter 11, it's going to help Ford? Most likely not.

[Critic]

the sky is falling!

[BlackHorse]

Sounds like a load of BS to me. I suspect a small number of execs have been playing games with the wealth of GM that was generated by the sweat off the workers brow. If there is a serious or dire collapse of some kind you mark my words, the Execs will be quiite fine financially and the workers will get the shaft. All of this flowery language about "control" this and "reconcile" that just leads me to believe something is up. For instance.

 

Specifically, controls were not effective to ensure that significant non-routine transactions, accounting estimates, and other adjustments were appropriately reviewed, analyzed, and monitored by competent accounting staff on a timely basis

 

 

Now, you have to ask yourself. What is a "significant non-routine transaction"? Sounds to me like somebody took a whole bunch of money and they didn't have a good reason or excuse for doing so.

[jpd80]

Hallmarks of a pretend GM turnaround plan.

 

They really haven't changed a darned thing.

[Critic]

Quick,, name the 2 person name law, that when Wagner put his signature on the financial statement certifying it to be correct.

 

And if it wasn't,, he was to get Martha Stewart's old room in jail ala Enron.

 

Stupid me.. that doesn't apply to the really big companies, that's why they have huge law departments and firms they employ. :gang:

[jpd80]

It's called the "Jerry York", off sider to old fart whistle himself.

Edited May 26, 2008 by jpd80

[Critic]

Quick,, name the 2 person name law, that when Wagner put his signature on the financial statement certifying it to be correct.

 

And if it wasn't,, he was to get Martha Stewart's old room in jail ala Enron.

 

Sarbanes-Oxley Act

The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the high-profile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long. The legislation not only affects the financial side of corporations, but also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for non-compliance are fines, imprisonment, or both. IT departments are increasingly faced with the challenge of creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation

 

Might not apply in this case

Edited May 26, 2008 by Critic

[NickF1011]

Sarbanes-Oxley Act

 

Might not apply in this case

 

Oh it probably would in one way or another. It's kind of ridiculous the amount of additional accounting that needs to be done to fully comply with SOX.