On the Social and Political Role of Audit

Audit plays an important symbolic role in the economy and society. May sound odd, but one could speak of the social and political role of the auditing profession.

We are all used to the state having the central controlling function, meant to be on behalf of the society. But the more the society liberates itself from the state’s meddlesome “services”, the better. The state is per definition a bad and inefficient service provider, not only historically and in terms of its “corporate culture”, but also simply because of its scale: a small local enterprise will certainly be better able to concentrate on the demands of the local “small” ordinary people than a big universalized machine trying to fit all the interests of all the multiple different people at the same time. The same with the state: it has traditionally has the goal to be “everything for everyone”, grant welfare to all the people. But as a result it just wastes time, money and human resources; or is more often just an instrument of influence in the hands of certain immoral persons.

So, audit is exactly the instrument and hopefully only one of the first signs of how a society can take over the functions of the state. As far as not only the shareholders, but also the general public too, are users of the audited financial statements, here we see how a company builds its relations with the society. I don’t like the word “public control” as no one should control anything that is not his private property – and a private company is certainly anything but a “private property” of the public. But what we see here is exactly how a company communicates with the society and the society “has its eye” on the company without a slight participation of the archaic bureaucratic state in the process.

Of course, the bureaucrats are trying to put their fingers into auditing and establish their control there. Remember the stupid situation with the Russian authorities getting PwC to court for the audit of YUKOS.

At the end of the day, the auditing firm’s only real asset that allows it to do business is reputation. The auditor simply states that after having done some procedures it has the impression of the financial statements to be true and fair. Not more and not less then that, and whether to rely on the auditor’s statement or not – is up to the individual user of the financial statements. Of course one will be more likely to rely on them is the auditor is Deloitte or E&Y than if the statement comes from some unknown little audit company. But even if having trusted a brand – it’s always, always the user’s own risk and decision.

That’s how important audit is as a symbol of civil society’s self-regulation replacing the state. In some way it makes me proud to have worked in this noble profession, no matter how hard it was at some times and how much the work process itself has to be improved and will be improved as technology advances.
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Sports

It's very important to do sports for a successful career.

- A success comes from the inner motivation to succeed. And the taste of success comes from past successes and from small victories from the every-day life. A won football match, a distance run or rode by bike – that all gives the feeling of having achieved something, supported by the relevant physical impressions

- Every football or basketball match you play is training on team working skills, first of all on psychological level

- Every bike ride is you ruling the space, getting the flying feeling of from your fast move and therefore a physical impression of changing the reality on your own wish

- I'm not a specialist in medicine and may therefore sound naïve, but I know that sport makes the organism produce hormones and initiates processes inside you that improve your productivity

- Sports just give you a good feeling and a fit look. And if you feel well and look well and know you look well, you’ll do better.

When I was small I was a child who preferred to sit at home, watch an interesting movie or read an interesting book or play Lego instead of going out and play some football outside – and therefore I tend to like single sports like swimming or bicycle. That's something I'd like to be changed - but nowadays my low football skills may be a problem :(

The main thing s to get the time for sports, and this may be a problem when you leave work at 9 PM.

Yeah, now I’m motivated to go to the swimming pool tonight! :)
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From E&Y to the embassy

From 22 January 2007 – Ambassador of the Republic of Hungary to the United Kingdom.

Borbala Czako, Country Managing Partner of Ernst & Young in Hungary and Deputy Managing Partner Central Europe South worked as the TAS service line leader of the firm between 2002 and 2005. She joined Ernst & Young in January 2002 from the World Bank Group, where she worked for 10 years. She was the Chief of Mission of IFC with investment banking responsibilities in Hungary and the region. On special assignments from the WBG she worked in Washington D.C. and Africa as well.

She has extensive experience in large private sector transactions in greenfield investments, privatization, mergers and aquisitions (Westel, Matáv, TetraPack, Suzuki, Pannonplast, Rambox) and financial sector investments (Raiffeisen Unicbank, InterEuropa Bank, First Hungary Fund, Euroventures). In her recent assignments Borbala worked on securitisation, environmental, energy efficiency, SME, health and educational projects.

Embassy of Hungary in the UK

// originally read about in Accountancy, march 2007

That's a career of my dream.

Grown up in a diplomatic family, in my childhood I inertially imagined my career as a one in foreign relations - but pragmatism prevailed as when it was to decide where to go after school, and international economics was the correct decision :)

Now, as I do not work at a foreign ministry (inclusively because there is no foreign ministry I'd like to work for: neither the Russian, nor the Belarusian until it's over with Lukashenka), my only possible way of becoming diplomat is to become something comparable to Entrepreneur of the Year (as this lady did) and then be invited for ambassadorship for the sake of prestige.

Gotta do that!
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Work/live convergence

At the office full of twentysomethings where my girlfriend, Niki, works, everyone was comparing their salaries, and the owner of the company got really angry. And his being angry made for a tough week, so Niki asked him if she could take Friday off.

He said, “If you’re going to be successful you need to start putting your career before your life.”

Of course she took the day off.

When she told her mother about the situation, her mother said, “If you don’t put your life before work you will never be happy.”

Hearing this conflicting advice from two of the most influential elders in your life is confusing. What does Niki’s boss say to his kids when he gets home? Does he tell them to put work before life? What would Niki’s mom say to young people she works with? Would she tell them to go home early?

This whole notion of needing to separate work and life implies that your career, which takes up about 75% of your day, is something you simply try to get through so you can go home and do what you really enjoy for the other 25%. What a terrible way to live.

Interesting post at penelopetrunk.com

The main thing is that you really enjoy your work so that it does not leave your interests and potential unrealized. Plus, very important is that your friends and/or family members work with you. Plus a maximally flexible working schedule.

The answer is own business
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Proletariat der Postindustriellen Epoche

Kapitalismus wie er von Marx beschrieben wird, wo die Arbeit zur totalen Ausbeutung und Folter der Arbeiter wird, existiert schon längst nicht mehr in der Industrie oder in der Landwirtschaft – dabei ist es gerade das, was in manchen von in unserer modernen postindustriellen Wirtschaft dominierenden Branchen aufgefunden warden kann, wo Broker und Consultants genau so mühevoll in gesundheitsschädlichen Umständen pauken müssen.

Gut, wenn man dafür entsprechend gut bezahlt wird. Richtich Scheiße ist es aber, wenn das nicht der Fall ist, und die Motivation (Anführungszeichen?) auf Karrierestart und die Auswegslosigkeit für gestrige Uni-Absolventen beruht.
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