Not only has Bally’s performed poorly financially; in one year it won the sweepstakes

for most complaints to the Better Business Bureau in New York State.  Today we learn that Bally’s auditor-Ernst& Young- is fined $8.5 million by the SEC for fudging the numers or as we used to say ‘lying’.  When asked to correct the items it ‘ mis stated’, Bally’s did, but failed to restate losses from previous years. This is the largest fine for any CPA firm in history and censures in Ernest & Young at the highest levels ever. http://www.nytimes.com/2009/12/18/business/18audit.html?_r=1&ref=business

It is sad that CPA firms can no longer be trusted.  And even with censures and fines these NEVER change the culture of the organization.  The fact that Bally’s CFO and former controller were ex Ernst & Young partners, illustrates Socrates worry when he said, ‘Who will protect us from the protectors?’

See my next post on The Persistence of Organizational Culture.

Tags:   Ballys · Culture. · Ernst & YoungNo Comments