Constructive Collaboration – CorporateMOM with a GE Case Study
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Podcast Episode 54
Constructive Collaboration – CorporateMOM with a GE Case Study
Bring the abstractions into reality, acknowledge value where value is due, and deconstruct what is valueless.
CorporateMOM looks at GE, based on the article “GE divorced from KPMG after 111 years” by Iridium. By 2018 GE had become a byword for corporate scandal, accusations of corruption, regulatory sanction, and illegal accounting practices. Truly shocking to me to read the article. I raised the issue of “Deconstruct what is valueless” and what steps GE has taken internally since KPMG as Auditors had been replaced.
The report by Iridium – This cozy relationship between auditor and audited is under increasing scrutiny. It simply does not fit with the current mood of regulatory governance to keep such an important relationship unchallenged and intact for so long taken note of, vis-a-vis SOS [Subject-Object-Self] Governance Due Diligence.
June 22, 2020, is the day KPMG left the space for Deloitte that I mentioned on “Construct Values” with an IFRS mission statement – The purpose of international accounting standards is “to develop IFRS® Standards that bring transparency, accountability, and efficiency to financial markets around the world.
Referencing Prof. Ashwath’s The Corporate Life Cycle I move on to ‘The Role of Auditors’ and offer the SOS Governance Standards. The Corporate Life Cycle brings up the status of a few companies under each stage of development and arrives at the status of GE and Ford as in the decline stage. These companies LIME, AI, TESLA, Uber, Netflix, Nvidia, Facebook, Google, Coca-Cola, and Walmart besides GE and Ford, I reconstruct under CREAM Ratings [ Corporate Governance, Risk Management, Earnings, Accounting Quality, Management Quality] scan how it would be by SOS Governance Standards. Is an interesting analytics offering solution to the first question I raised: what steps GE has taken internally since KPMG as Auditors had been replaced?
In our backyard, we find BDO has taken over as the Auditors of Byjus. What steps Byjus has taken and what steps BDO has taken?
I have also suggested the false notion of an Auditor resolving many an issue of such companies the statutory auditor post be scrapped and let the management take the responsibility of signing their annual accounts. Mind you, SVB and FTX had a statutory auditor.
#LIME, #AI, #TESLA, #Uber, #Netflix, #Nvidia, #Facebook, #Google, #Cocacola, #Walmart, #GE, #Ford,
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