Summary
On May 12, 2008, an earthquake with a magnitude of 8.0
hit the Sichuan, Gansu and Shaanxi provinces. The National Audit Office (NAO) says that over 4,500 auditors have been tracking the 76 projects distributed across the 28 counties of the three provinces since January. Projects include the reconstruction of rural houses, schools, transportation, and telecommunication projects. Although no major legal breaches were found in the use of reconstruction funds, the NAO did find some problems. The Anxian county lied by inflating its losses from the quake, so they would receive more fundings than they require. As a result, central finance gave out an extra 15.5 million yuan to the project. But in the end, after auditing, the extra money was refunded.
hit the Sichuan, Gansu and Shaanxi provinces. The National Audit Office (NAO) says that over 4,500 auditors have been tracking the 76 projects distributed across the 28 counties of the three provinces since January. Projects include the reconstruction of rural houses, schools, transportation, and telecommunication projects. Although no major legal breaches were found in the use of reconstruction funds, the NAO did find some problems. The Anxian county lied by inflating its losses from the quake, so they would receive more fundings than they require. As a result, central finance gave out an extra 15.5 million yuan to the project. But in the end, after auditing, the extra money was refunded.
Connection
This article relates to chapter 1 of the textbook, Financial Accounting - a use perspective, because it mentions about auditors and their job. The textbook defines an auditor as someone who is a "professionally trained accountant who add credibility to the financial statements by expressing their professional opinions as to whether the financial statements fairly present the company's results." In other words, an auditor is a professional accountant who "checks over a company's 'books' and their job is to correct the mistakes found." The thousands of auditors are important in this article because they have helped the many people in need by refunding "stolen" money, so it can be used for people that actually need it.
Reflection
In my opinion, auditors are important to everyone; for if there were no auditors, the money would've been "stolen" by these greedy people, and the people starving or homeless may not get help because of their greediness. I believe that many people in the world are lying in order to collect more money, and auditors are helping by stopping them from "stealing" money. Also, I think that auditors should check companies more often, maybe every six months, instead of every year; this will lower the chances of any major violations or legal breaches.
I agree with that auditors are important to everyone. They bring a fairness in the world where scamming and actual amounts of money to support the earthquake is fully provided for the Sichuan, Gansu and Shaanxi provinces. Companies tend to be very dishonest when it comes to money. It is natural to want more money but not from legal breaches. With personnel's like auditors companies do not have a chance to make fake financial statements. Therefore not being able to trick investors of a better decision on investments. This is why auditors are needed everywhere in the world to provide justice in our cruel and epic world.
ReplyDeleteI also agree that auditors are needed in this world to stop the greedy people stealing money. If the Anxian County took the money, then the funding would lower in other places where it is needed. The extra 15.5 million Yuan to reconstruct the county is a lot of money which could be use in other areas like building new houses for the homeless. Like Kevin said, auditors should check more frequently to prevent situations like this. There are many people who do things like this for personal benefits. That is why auditors are important in this world to prevent people from stealing money.
ReplyDelete-S.Tran