Auditing Financial Statements

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  • #16
    Re: Auditing Financial Statements

    Originally posted by Fred McKim View Post
    Well, I thought that maybe your offer of a volunteer review by a professional (yourself) was still on the table. Bob is no longer part of the CFC Executive, so we have no knowledge of any past dealings you may have had with him.

    The charitable status thing is in the past, as well. So let's move forward. Certainly it was well advertized at the time it happened.
    My offer to Bob was for a specific matter that he called for qualified volunteers to help with. That offer was rejected out of hand. I don't believe that Bob had any serious intentions to begin with. I think he was just calling for volunteers so that he could say publicly that he had tried. The way that was handled has soured me on volunteering for the CFC. If I remember correctly Bob was also not on the CFC executive at the time he made the request either. You have no knowledge? Was Bob acting as a rogue? Did you not read about the matter and his postings in reply to Duncan McKinnon on Chesstalk? Are you not aware of any and all past matters involving past CFC executive? Are the messy records, requiring hours of audit work according to Bob, all cleared up now on this matter?

    If you are asking for my help now then ask me nicely. Not in a back handed way.

    Well publicized? That does not exempt the need to put relevant and material items in the financial statements for any user of said statements. When Ford or RIM or GE have major news items happen do they just leave it out of their financials because it was already in the news? Come on you know better than that. You can disagree with me all you like, you can circle the wagons at the first sign of any criticism but let's not debase basic accounting principles. You are better than that.
    Last edited by Zeljko Kitich; Wednesday, 26th June, 2013, 12:04 PM.

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    • #17
      Re: Auditing Financial Statements

      Originally posted by Zeljko Kitich View Post
      My offer to Bob was for a specific matter that he called for qualified volunteers to help with. That offer was rejected out of hand. I don't believe that Bob had any serious intentions to begin with. I think he was just calling for volunteers so that he could say publicly that he had tried. The way that was handled has soured me on volunteering for the CFC. If I remember correctly Bob was also not on the CFC executive at the time he made the request either. You have no knowledge? Was Bob acting as a rogue? Did you not read about the matter and his postings in reply to Duncan McKinnon on Chesstalk? Are you not aware of any and all past matters involving past CFC executive? Are the messy records, requiring hours of audit work according to Bob, all cleared up now on this matter?

      If you are asking for my help now then ask me nicely. Not in a back handed way.

      Well publicized? That does not exempt the need to put relevant and material items in the financial statements for any user of said statements. When Ford or RIM or GE have major news items happen do they just leave it out of their financials because it was already in the news? Come on you know better than that. You can disagree with me all you like, you can circle the wagons at the first sign of any criticism but let's not debase basic accounting principles. You are better than that.
      I'll agree that I'm not a professional accountant.

      For the record, I have served as CFC Treasurer from July 2010 until present. While I was on several previous Executives, the last time before 2010 was 2001. I know that Bob was on the Executive (Treasurer) and then Executive Director and then neither and then back on the Executive (President) with me in 2010.

      So I'm not sure what time period you're referring to.

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      • #18
        Re: Auditing Financial Statements

        Originally posted by Zeljko Kitich View Post
        ... The way that was handled has soured me on volunteering for the CFC. ...
        You should look on the bright side. You learned this without it costing you money or a lot of time. Consider yourself lucky. ;-)
        "Tom is a well known racist, and like most of them he won't admit it, possibly even to himself." - Ed Seedhouse, October 4, 2020.

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        • #19
          Re: Auditing Financial Statements

          Originally posted by Zeljko Kitich View Post
          Interesting, you criticize me for typos and Paul Beckwith writes long wiinded diatribes about how I edit too much. At least Jordan's suggestions about improving my writing style, punctuation and so on are helpful. Me stifle conversation? I'm pretty easy to ignore. I'm sure if you really try you can do so.

          Oh and watch your back; the next time you make a typo I'll be all over you. Cause you know, that's what we do here on Chesstalk, right? At least I spelled naive correctly.
          For a guy who spews more venom than most on this board, you're awfully thin-skinned.
          "We hang the petty thieves and appoint the great ones to public office." - Aesop
          "Only the dead have seen the end of war." - Plato
          "If once a man indulges himself in murder, very soon he comes to think little of robbing; and from robbing he comes next to drinking and Sabbath-breaking, and from that to incivility and procrastination." - Thomas De Quincey

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          • #20
            Re: Auditing Financial Statements

            Zeljko, you keep telling this story over and over again. I know I will regret this, but to set the record straight:

            Zeljko: My offer to Bob was for a specific matter that he called for qualified volunteers to help with.

            The specific matter in question is the CFC Youth Fund on and around 2007. At that time the accounting records were a total mess. This has been well documented and discussed at length. I was elected Treasurer in July 2007, and later hired as Executive Director in December 2007. My first priority was to get the office functioning effectively again and to meet the immediate needs of the members. Unfortunately, cleaning up the accounting records became a lesser priority. I was replaced as ED the next year and so I lost the opportunity to finish the job. When Gerry took over ED, in order to move forward, old balances were simply written off. A complete and full accounting of the 2005-2007 years has never been fully achieved. In hindsight, I regret not having given this a greater priority at the time.

            The Ottawa organizers made a sizable contribution to the CFC Youth fund in 2007. Due to our accounting deficiencies at the time, we have never been able to give them a complete and satisfactory answer to their question of “how was all that money spent?” I feel bad about that. So, yes I did offer to go back and dig thru all the old records and try again to reconcile them as long as another volunteer was willing to help. I did stipulate that this volunteer needed to be an experienced accountant, willing to put in the time needed, and be professional and objective.



            Zeljko: That offer was rejected out of hand. I don't believe that Bob had any serious intentions to begin with. I think he was just calling for volunteers so that he could say publicly that he had tried. The way that was handled has soured me on volunteering for the CFC.

            Yours was the only offer I did receive. I did reject your offer for the following 3 reasons:

            1. You do not possess the necessary experience required for the assignment. You did try to persuade me otherwise, but your argument was weak, and I think you know it.
            2. You also told me you would be heading for Europe in a few months to go to school. This meant it was unlikely you would be available to see the project thru to completion.
            3. I do question your objectivity. IMHO, you seem to have a number of axes to grind. I do question whether you possess the demeanor and objectivity required.


            Zeljko: If I remember correctly Bob was also not on the CFC executive at the time he made the request either. You have no knowledge? Was Bob acting as a rogue?

            Well, when was that exactly? I probably was on the executive as either President or Past President.

            Zeljko: Did you not read about the matter and his postings in reply to Duncan McKinnon on Chesstalk?

            Who is Duncan McKinnon?


            Zeljko: Are the messy records, requiring hours of audit work according to Bob, all cleared up now on this matter?

            No. The organization has moved on, corrected the deficiencies, hired an outside auditor, and is focused on the future.
            Last edited by Bob Gillanders; Wednesday, 26th June, 2013, 02:41 PM.

            Comment


            • #21
              Re: Auditing Financial Statements

              Originally posted by Bob Gillanders View Post

              The specific matter in question is the CFC Youth Fund on and around 2007. At that time the accounting records were a total mess. This has been well documented and discussed at length. I was elected Treasurer in July 2007, and later hired as Executive Director in December 2007. My first priority was to get the office functioning effectively again and to meet the immediate needs of the members. Unfortunately, cleaning up the accounting records became a lesser priority. I was replaced as ED the next year and so I lost the opportunity to finish the job. When Gerry took over ED, in order to move forward, old balances were simply written off. A complete and full accounting of the 2005-2007 years has never been fully achieved. In hindsight, I regret not having given this a greater priority at the time.

              The Ottawa organizers made a sizable contribution to the CFC Youth fund in 2007. Due to our accounting deficiencies at the time, we have never been able to give them a complete and satisfactory answer to their question of “how was all that money spent?” I feel bad about that. So, yes I did offer to go back and dig thru all the old records and try again to reconcile them as long as another volunteer was willing to help. I did stipulate that this volunteer needed to be an experienced accountant, willing to put in the time needed, and be professional and objective.
              That certainly sounds like a good argument for an annual audit.
              Gary Ruben
              CC - IA and SIM

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              • #22
                Re: Auditing Financial Statements

                Hi Larry,

                I admire that many posts have been made since you replied to me but not one addresses my questions.

                Anyhow, everyone's a hero when the market is going up. :)

                Gary
                Gary Ruben
                CC - IA and SIM

                Comment


                • #23
                  Re: Auditing Financial Statements

                  I'm not thin skinned I'm just not a fan of the cheapos you throw out about typos and such. When I say just ignore me I'm quite serious. I don't mind at all. So carry on with the conversation you accuse me of stopping. I think you'll find you can.
                  Last edited by Zeljko Kitich; Wednesday, 26th June, 2013, 06:57 PM.

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                  • #24
                    Re: Auditing Financial Statements

                    Wow congratulations, an explanation more than a year later that disparages me as being an unsuitable volunteer. I was the treasurer from 2006 to 2008 of a 3000 member union local where I initiated just such a professional independent audit, have an accounting and finance double major and had some months to complete the project. Initiating the audit required a lot of accounting work on my part due to ancient accounts receivable, major bills unpaid for up to a year, negative account balances, fines to the CRA for late filing and payments, and poor treasury management that was costing $100,000 per year. Not to mention no computer back up of prior years records and other matters. Just how complicated were these messy accounting records that they would require more than a few months to sort out. Why don't you just admit that you were never serious in the first place instead of engaging in cover your ass character assassination of me. The simple fact remains that you are admitting that CFC records were in a mess. Actually a 'total mess', wow.

                    This seems exactly the kind of organizational mess that could benefit from an audit. Moved on? The CFC says they know nothing of this matter. How can they correct deficiencies they are unaware of? I question whether you possess the demeanor and quality to properly address these issues. You take a very blase attitude for someone who is a professional accountant. To wit you never straightened these records out or got to the bottom of the issue. You kept going on about how much work would be involved when we discussed it. In place of objectivity you substitute an apparent desire to white wash the matter. You seriously suggest that an accounting graduate does not know enough accounting to tackle the matter at hand? A critical eye is needed, not a blind eye. If you were hoping to get a patsy to volunteer you are right I wasn't ever going to be that patsy. You will however remember that I offered to sign a confidentiality agreement that I would not discuss the findings with anyone, including publicly. You keep using the excuse that you had no time. Well a volunteer stepped forward to help you with that issue. I think you can stop using that excuse. You only asked for a knowledgeable volunteer. These other requirements you are adding now to CYA yourself. Go back to the original post. Here I will help you. http://www.chesstalk.info/forum/show...tich+volunteer "But I do have conditions. The volunteer must have an accounting background, willing to invest the time needed, and they must be fair and objective. Otherwise, we are just wasting our time." Did you say experienced accountant? No you did not. Is an accounting degree an accounting background? Yes I think most people would agree it is. Did I tell you I was going on exchange in a few months. Yes I did in making the point let's start now and not put it off for a few months more.

                    You failed to address the matter satisfactorily despite having an official position and a paid position, and instead have a shopping list of excuses. Where were the internal controls and procedures to prevent this 'total mess' in the first place? Who is the unsuitable one here? It doesn't take an experienced accountant to generate excuses. This still leaves me wondering why Larry Bevand is so dead set against an audit given this past history of accounting records being a 'total mess'. Especially involving youth chess, albeit in an organization that is not his own and not his to run.

                    I'm glad that an auditor has been hired. I just hope that person has done their due diligence and seriously considered if they want an organization like the CFC as a client.

                    Or Duncan Smith or whoever. I think you know who I mean, unless you have no memory at all. For the record Duncan McKinnon is a friend of mine. My apologies to him.
                    Last edited by Zeljko Kitich; Wednesday, 26th June, 2013, 07:39 PM.

                    Comment


                    • #25
                      Re: Auditing Financial Statements

                      I'll agree that I'm not a professional accountant either. However, I think even a non-professional accountant approving annual financial statements should be up to speed on what needs to be disclosed. So in this case hiring a pro is a good step if you are not up to speed on disclosure standards. However, I will say auditing standards require that a client be knowledgeable as the CA can't both do the accounting and auditing. They have to rely on the client being able to do their own accounting. Otherwise you may need to hire another firm to do the accounting.
                      Last edited by Zeljko Kitich; Wednesday, 26th June, 2013, 07:17 PM.

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                      • #26
                        Re: Auditing Financial Statements

                        Whatever. (yawwwn......)
                        "We hang the petty thieves and appoint the great ones to public office." - Aesop
                        "Only the dead have seen the end of war." - Plato
                        "If once a man indulges himself in murder, very soon he comes to think little of robbing; and from robbing he comes next to drinking and Sabbath-breaking, and from that to incivility and procrastination." - Thomas De Quincey

                        Comment


                        • #27
                          Re: Auditing Financial Statements

                          Exactly, that's what I'm talking about. Just say whatever and ignore me. Well done. And you will find that I have not stopped any conversations. You don't know how proud I am of you at this moment.
                          Last edited by Zeljko Kitich; Wednesday, 26th June, 2013, 07:39 PM.

                          Comment


                          • #28
                            Re: Auditing Financial Statements

                            Originally posted by Zeljko Kitich View Post
                            Wow congratulations, an explanation more than a year later that disparages me as being an unsuitable volunteer. I was the treasurer from 2006 to 2008 of a 3000 member union local where I initiated just such a professional independent audit, have an accounting and finance double major and had some months to complete the project...
                            I'm guessing Mr. Gillanders had more than enough reason to decline your services. There are a few things he likely considered:

                            1. Are you a CA?
                            2. Have you worked in accounting professionally for ~ 5+ years?
                            3. Validity of your degree?
                            4. Your conduct on ChessTalk?

                            I'm guessing he may have been concerned by one or more of the above points.
                            i rep back 3+

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                            • #29
                              Re: Auditing Financial Statements

                              Mr. Kitich is obviously a big fan of bureaucracy and formal rules from reading his opinions on many topics over the years. Often,
                              what works and is necessary for big business is totally inappropriate for small businesses. Having run a small business for numerous
                              years, I know you get resourceful in many areas. One would trust that organizations like the CMA and CFC could find the right resourceful
                              people for these roles. The CFC has in the past often found the wrong people ( including executive ), whether out of lack of choice
                              or not, hard to say. Bureaucracy, particularily federal government style, was a proven bad fit for the CFC. I think as an enterpreuner
                              you would have far better judgement on how the CFC or CMA should balance its books etc then Mr. Kitich. One cannot ignore the need
                              for integrity but keeping an open book should do the trick for the CFC.

                              ps Not saying the CMA is a small business, but the CFC basically is as of now.
                              Last edited by Duncan Smith; Thursday, 27th June, 2013, 02:40 AM.

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                              • #30
                                Re: Auditing Financial Statements

                                Hi Duncan,

                                According to Canadian Industry Profiles, a small business is defined as one with revenue between $30,000 and $5 million.A medium business has revenues between $5 million and $25 million.

                                Statistics Canada defines small businesses as firms with less than 500 employees and less than $50 million in annual revenues.

                                The Canadian Council of Ministers of the Environment defines business size according to the number of employees. Small Business has less than 50 employees. Medium Business has 51 to 500 employees.


                                So yes, the CMA is considered a small business in Canada.

                                Larry

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