re: What industry “secret” do you know that most people don’t?

quote:

---

External audits of financial statements of trillion and billion dollar companies are largely worked on by 23 year old kids fresh out of college

---

I mean, that’s kinda the point. By the time anything gets to an auditor, there would have been several layers of internal audits and reviews and controls put into place.

If some pothead auditor finds an issue, you’ve made many many mistakes along the way which is why companies find audits to be rather annoying.it means all the money they spent before that point was not used effectively.

I had a manager years ago that loved audits though. She found them helpul resource to build her case towards t objectives to senior management and found their insights useful

quote:

---

External audits of financial statements of trillion and billion dollar companies are largely worked on by 23 year old kids fresh out of college

---

On this note, the audit opinion always references the financial statements being “materially correct.” That is usually a percentage of net assets or revenues. 2% of net assets isn’t uncommon. Depending on the size of the company, this can be 10s or even 100s of millions of dollars.