abc learning interim net profit up 62 percent, page-47

"Reading back on all this, it does make a holder a bit nervous. But the question I have is - is ABC's auditor's Ernst and Young completely oblivious to this happening? They have to sign a little statement saying "The accounts are a true and accurate reflection of the company" or something like that."


An auditor signs off on two things :
* The numbers are correct
* The business is a going concern

But it's not an 'investment' recommendation.
It's the job of the directors to convey the true 'economic' reality of the business. In my experience, you don't often get an objective apparaisal from the directors. That's why it is part of the investment 'art' to know who to trust.
Generally people with good reputations will do their utmost to protect that reputation eg the Michael Chaney's of this world.

Analysts? Here again, the standard is variable. I've seen SELL recommendation for WOW every month of every year since 1993.

In a lot of ways, in this caper you are *on your own*.

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