Proud Auditor Quotes

When Landgren concocted false figures to explain some of the numbers in the financial statements, the auditors quickly found the fabrication and negotiations fell apart. W. E. Seatree, a lawyer and an accountant with Price Water-house, dashed off an angry letter directly to Ivar, in the formal style of someone who had proudly mastered the disciplines of both law and accounting during the early twentieth century: You will note that we did not certify the balance sheet. Mr Landgren’s letter is obviously an attempt to make it appear to you that he had accomplished something; but the fact that he had to resort to forgery to accomplish his purpose is the best proof of his failure. The euphemism, that he was going to issue a so-called copy of our balance sheet leaving out parts which were of material importance, does not disguise the true nature of his action.37 When Price Waterhouse lost confidence in Ivar, so did Fairburn and Diamond Match. Ivar tried to repair the damage by asking Jordahl to retain an independent outside accountant to vouch for their new US business. Ernst & Ernst, a reliable audit firm, completed a review of American Kreuger & Toll’s financial statements in June, but by then it was too late.38 The damage was done, and so were the negotiations.