What is the point?
What is the use of an audit?
The Equitable Life Assurance Society management stated if the guaranteed policyholders won the day at the hearing to take place before the House of Lords it would cost the society £50m, but £200m was provided in the accounts.
After the Lords decided Equitable were not in order regarding terminal bonuses, we have now been told that this was not enough.
The Equitable Life is 238 years old and was highly respected and audited by a leading firm of auditors.
Their audit report on the accounts for the year ended December 1999 was not qualified. Is the audit fee money well spent?