It was headlined "Nalcor audit won’t be done before retirement: AG"
As usual - pose a question - get an answer - print answer. No follow-up, no definitions of terms used, and no independent thought respecting the answer.
I'll get into Auditor General in another post - but for now - let's watch this "journalistic" masterpiece unfold.
The conversation between the two must have wandered into the need for a forensic audit. McLeod reports as follows on that question:
Paddon was cautious when talking about a potential forensic audit for Muskrat Falls. He said he knows it wouldn’t be cheap though.
“It would take a lot of time and a lot of resources. The outcome? I have no idea what the outcome would be.”
IN MY OPINION HERE IS WHAT SHOULD HAVE BEEN ASKED AND ANSWERED:
1. Paddon was cautious but did say it wouldn't be cheap though.
Question: what's cheap? why are you cautious?
2. Paddon was not quite sure that the word 'forensic audit' is appropriate.
Question: why is it not appropriate? what part of a forensic audit would be inappropriate?
3. Paddon believes he knows what critics are calling for - decision making and execution process
Question: how does that fall out of the purview of a forensic audit? Why do you believe "people" are only looking at those components?
4. Paddon believes it would take a lot of time and a lot of resources.
Questions: How much time would this forensic audit need? How much would it cost. Cost relative to what? What might be the cost of NOT doing it?
5. Paddon has no idea what the outcome would be.
Question: is that perhaps why people want one done? Is the reason you can't speculate on the outcome because you do not know what perimeters would be set?
and of course: Based on the doubling of the costs, hidden documents, continued extension on time-table for completion, independent contractors information hidden from shareholder. Don't these things present a red-flag to an accountant?
AFTER THIS MCLEOD SHOULD HAVE SOUGHT ANOTHER ACCOUNTING SOURCE AND ASKED THE SAME QUESTIONS.
Now let's do a bit of research ourselves and see if a forensic audit is exactly what we are asking for and know that we need.
Forensic auditing is a specialization within the field of accounting, and forensic auditors often provide expert testimony during trial proceedings. Most large accounting firms have a forensic auditing department.
The audit covers a wide range of investigative activities performed by accountants. The process may also include serving as an expert witness in a fraud trial.