Absolutely. And Trump’s personal attorney is going to prison, in part, for this exact type of illegal behavior.
Is it possible they’ve never bought a house or car?
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Good point.I’m starting to think most of em only qualify for a payday loan or a pawn shop.
That’s the only explanation for the ignorance and willingness to defend this behavior.
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Only the most gullible think that Trump is “being audited” for every tax year.
So there was a disclaimer that the financial statement didn’t follow standard practices. Any financial institute worthy of being called such, would do it’s own due dilligance in valuation before lending any money.
and if they are told up front how things are valued by the owner (counting future income), is it really fraud (as many are claiming Trump is guilty of).
Not following standard practice is a sweet little euphemism for now following the standard practice of counting.
Because if we know anything about financial institutions over the past decade or so, we know they totally make sure they are making sound financial decisions.
You are right. You can hire an accountant to do your tax’s and you can hire an accountant to do financial statement for you.
When they perform this service they do it in two ways.
One way they come to your business and audit your books and make a financial statement or your tax return for you on their findings. When they are done they put a note with the financial statement or tax return that they audited your books and can verify that the information is accurate.
The second way is you hire them and you provide all the information to them. They never come to your office and verify the information they just use what you have provided. When they are done they put a note with the financial statement or tax return that you provided the information that they used. That they did not audit your books and can not verify that the information in accurate.
Ok, it sounds like some are still confused over the auditor’s opinion portion of an audit. When an auditor performs an audit, part of the final report is their opinion of the reliability of the client’s financial statements. There are generally 3 opinions given:
- Unqualified: if an auditor’s note gives an unqualified opinion, the auditor believes the financial statements are generally free from material misstatement (in lay terms, this is a “clean” opinion.)
- Qualified: in this opinion, the auditor believes the financial statement are somewhat reliable (reliable except for certain portions, which they will annotate as part of the report.)
- Adverse: this is where the auditors state that there are major misstatements in the financial statements, and they note that the misstatements are so severe that the financial statements CANNOT reasonably be relied upon for making decisions.
In the OP example, it sounds like Trump’s organization recieved an Adverse opinion on their financial statement audit.
You can find more about each of these three opinions here:
i wonder if CPAs every go home and say “Honey, I’m working on “X” for Donald Trump. If I ever get arrested…”
