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Please tell me when to stop laughing at SHA


rjw63

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In 20 years I've never seen a disclaimer of opinion on a set of accounts before, that's accountancy speak for "these accounts are entirely without merit"!

My thoughts entirely although I can claim a few extra years. :)

I mentioned them to a partner of one the big accountancy firms who is very closely involved with the largest team in this area (you can guess who) and he expressed little short of disbelief at the audit opinion or lack of it. The next thing will be the resignation of the auditors as their position is untenable.

My take is that Blues are basically insolvent and I think if anything affects the HK companies ability to support the club I can see administration looming.

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Just to clarify what is a "disclaimer of opinion", highlighting what might happen :D

Disclaimer of Opinion reportA Disclaimer of Opinion, commonly referred to simply as a Disclaimer, is issued when the auditor could not form, and consequently refuses to present, an opinion on the financial statements. This type of report is issued when the auditor tried to audit an entity but could not complete the work due to various reasons and does not issue an opinion. The disclaimer of opinion report can be traced back to 1949, when the Statement on Auditing Procedure No. 23: Recommendation Made To Clarify Accountant’s Representations When Opinion Is Not Expressed was published in order to provide guidance to auditors in presenting a disclaimer.[6]

Statements on Auditing Standards (SAS) provide certain situations where a disclaimer of opinion may be appropriate:

A lack of independence, or material conflict(s) of interest, exist between the auditor and the auditee (SAS No. 26)

There are significant scope limitations, whether intentional or not, which hinder the auditor’s work in obtaining evidence and performing procedures (SAS No. 58);

There is a substantial doubt about the auditee’s ability to continue as a going concern or, in other words, continue operating (SAS No. 59)

There are significant uncertainties within the auditee (SAS No. 79).

Although this type of opinion is rarely used,[6] the most common examples where disclaimers are issued include audits where the auditee willfully hides or refuses to provide evidence and information to the auditor in significant areas of the financial statements, where the auditee is facing significant legal and litigation issues in which the outcome is uncertain (usually government investigations), and where the auditee has going concern issues (the auditee may not continue operating in the near future).[6] Investors, lending institutions, and governments typically reject an auditee’s financial statements if the auditor disclaimed an opinion, and will request the auditee to correct the situations the auditor mentioned and obtain another audit report.

A disclaimer of opinion differs substantially from the rest of the auditor’s reports because it provides very little information regarding the audit itself, and includes an explanatory paragraph stating the reasons for the disclaimer. Although the report still contains the letterhead, the auditee’s name and address, the auditor’s signature and address, and the report’s issuance date, every other paragraph is modified extensively, and the scope paragraph is entirely omitted since the auditor is basically stating that an audit could not be realized.

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If keane gets the job he will be out before christmas

Will lose the dressing room like he always does e.t.c

I think he'd be a hilarious fit for blues should he go there make it happen please please please

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Just a thought, if Clark and Keane are the two favourites as the local press would have us believe then my logic would make Keane favourite and Clark second.

My logic being that Clark is home kicking his heels and waiting for a job while Mr Keane is over in Ukraine or Poland working and will have an agreement in place probably until the final of the Euro's.

They could have appointed Clark by now but they haven't so he isn't first pick, someone else is and they are waiting for them so I think Keane front of the line.

If they do appoint him I can see him doing well in the short term before it all goes very very wrong.

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