Tag Archives: auditor

JP Morgan Whale Trade Losses: Important Lessons For Auditors And Risk Professionals

Some more information has come to light on the more than $7 billion “Whale Trade” derivative losses at JP Morgan—that total being comprised of an amount of over $6 billion in losses on the trade and a further amount of almost $1 billion in fines.

In an article on Bloomberg entitled JP Morgan’s Biggest Mistake, author William D Cohan provides us with somewhat of an insider’s overview on the problems that led to the Whale Trade losses—his sister-in-law sat on the Audit Committee. This article summarises some of Cohan’s main points and identifies the lessons that auditors and other risk professionals should be learning in order to avoid making similar mistakes. Continue reading

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Can You Trust Your Auditor?

Audited financial statements are supposed to provide a solid foundation for financial markets. Yet, they increasingly appear incapable of delivering what is needed—a reliable assessment of an organization’s financial position. Is there any hope for change?

The recent history of professional accountancy and audit firms has been far from glorious. Audited financial statements are supposed to provide shareholders, investors and creditors with an independent and objective assessment of an organization’s health. The financial crisis of 2008, the aftershocks of which are still being felt all over the world, made audited financial statements look like they were not worth the paper they were written on.  Continue reading