I agree that's absolutely laughable and another nail in the coffin for his reputation. Auditors are there, (I have done some auditing in my career) to check the veracity of the financial assertions in the financial statements and the underlying reasonableness of the basis of their preparation and have nothing whatsoever to do with the abysmal performance of any particular division and nor are they engaged to recommend business strategies to help turn and business division around. Good that he's standing down.
We used to be taught that "an auditor is a watchdog and not a bloodhound". Did anyone hear any barking?
We used to be taught that "an auditor is a watchdog and not a bloodhound". Did anyone hear any barking?
Read any audit report of a listed company and you'll get the gist of what an auditors role is. Pages 97-100 contains EY's audit report which I'm not going to comment on as that would be unprofessional to comment on another firms work without a mandate to thoroughly investigate their processes. https://fletcherbuilding.com/assets/...ual-report.pdf
I remain of the view that to imply somehow the auditors weren't doing their job was a very cheap shot by Ralph Norris. Any audit report outlines the auditors responsibilities and the Directors responsibilities. Bryan Gaynor outlined deep concerns over governance standards at FBU over recent years. I share his view and concerns and the buck stops with all the directors, (including among others Tony Cater), not just Ralph Norris. The bottom line is he was in the chair when they signed off on arguably the greatest construction cost overruns fiasco N.Z. has ever seen. Why anyone would want to remain as a shareholder until there's a comprehensive board and middle management refresh is a mystery to me.
Last edited by Beagle; 19-02-2018 at 03:31 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
I agree that's absolutely laughable and another nail in the coffin for his reputation. Auditors are there, (I have done some auditing in my career) to check the veracity of the financial assertions in the financial statements and the underlying reasonableness of the basis of their preparation and have nothing whatsoever to do with the abysmal performance of any particular division and nor are they engaged to recommend business strategies to help turn and business division around. Good that he's standing down.
Presumably the auditors do all parts of the business - the profitable parts as well as the wealth destroying part.
FB summarised KPMG's findings following the review of the Convention Centre in Oct 2017 stating... "Significant ongoing judgment required to account for unknown and unquantifiable risk"...and ..."Forecast outcome materially worse than previously expected" .
Probably enough clues in there!
Hard to criticise KPMG as their report was never made public (unless I have missed it)?
Interesting that there has been no comment today on FBU with their announcement of the HY results. Also the SP has plummeted by another 7%. Feeling a lot better about my exit at 6.89 the other day after the Norris fiasco.
No comments because a/ it's all been said and b/ there wern't any surprises.
What explains the 7% fall in SP today then do you think? (if all had been explained and no surprises). Not being facetious here, just naturally curious. Glad I sold out when I did but would not have thought the market would want to see the result to drop it another 7%.
What explains the 7% fall in SP today then do you think? (if all had been explained and no surprises). Not being facetious here, just naturally curious. Glad I sold out when I did but would not have thought the market would want to see the result to drop it another 7%.
I don't know the answer,however I was speaking to a friend of mine today who sold his FBU at near$7. The amount he had invested was returning him approx. $4,000 pa.He has invested the funds into AIR and HLG.Will receive about $5,000 in divies and has about $4,000 cash left over.
The reality is no next dividend from FBU, and I would expect either following divies will be reduced,or should the US bond holders kick up a fuss,FBU will have to raise capital.Maybe no divies for a year or two?
So my friend looks to be at least $5,000 pa better off for some time?
Originally Posted by Beagle
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