What Do True and Fair View in Audited Annual Report mean?

[Dennis Ng]

"True and Fair View" in Audited Financial Statement does NOT mean True or Accurate or Correct at all, anyone who does NOT have an Accountancy Degree and study Accounting Theory (only taught in the final year of Accountancy) may be shocked to hear this, but it is True.

Financial Statements are prepared based on GAAP or Generally Accepted Accounting Principles...look at the definition, it is so General, so Vague and Principles, how to interpret and apply principles may differ from people to people....so an Audited Financial Statement that say the account is True and Fair does NOT mean it is True or Accurate or Correct.

Please note that Auditing is based on sampling test. Becos there are simply too many records to audit, so they take sample. The sample has NO problem does NOT mean ALL the transactions have no problems. I did 2 months of Business attachment for Audit and decided NOT to go into Audit when I realised how auditing is done...and sometimes, when we audit, we write down so many comments but eventually the Auditing Partner signing off may decide to include or not to include some of these comments writen...

There are only BIG 4 Accounting and Auditing Firms in the world. With so many companies scandals, you must ask yourself why they are NOT implicated or in trouble? If Firm A audit and company goes into trouble, then they may appoint Firm B to do Special Audit, and next time, it may be the other way round, time for Firm B is the auditing firm and Firm A is doing the Special Audit...wake up to the Real World please.

In my seminar, I share many accounting tricks that can be done legally to twist and change the accounting figures, they are learned from many heartaches and losses suffered where I was tricked by such tricks and now I share all the Accounting Tricks I learned in my 19 years of Investment Experience in my seminars, which even someone after investing 30 years might NOT learn all these things if they do NOT have sufficient accounting knowledge. (Mind you, I'm an Accountancy Graduate, during my time when I graduated in 1993 (only 30% are guys), there is only One School of Accountancy, it is very strict and only the best can enrol, similar to having only one Law School and Only One School of Medicine). Of course, nowadays, even SIM plus 3 universities offer Accountancy Degree and each year there are many, many more graduates, I'm NOT so sure whether the standards are maintained or not.