Tish James was definitely that girl in high school with fifteen different colors of highlighters...

[demmiblue]

Tish James was definitely that girl in high school with fifteen different colors of highlighters in her backpack
https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=AZZxPVLi3GbCD7i0pGls0Q==

Link to tweet

Well done!

[LuckyCharms]

1. I was a commercial credit analyst for a few years.

I worked for a lending institution.

My job was to analyze the financial statements of potential commercial borrowers who were seeking a loan. I would perform the financial analysis, and then do a formal write-up which was presented to a loan committee, who then decided on the risk of lending money to the commercial entity, and therefore, decided whether or not to grant the loan to the potential commercial borrower.

One factor that was considered was the type of financial statement presented by the entity seeking the loan.

The gold standard would be a financial statement that has been audited by a reputable CPA firm, and the CPA firm had expressed an unqualified opinion as to the accuracy of the financial statements.

The worst type of statements would be compiled statements. They are barely a step above the potential borrower handing the lending institution a shoebox full of handwritten receipts. In a compiled statement, the accountant simply takes the information given to them by the commercial borrower and then puts that information into financial statement format. Period. That's it. The statements are not audited at all, nor is there any opinion expressed by the accountant that addresses their accuracy.

The only reason companies have their accountants do compiled statements is so they have SOMETHING to present to a lending institution when requesting a loan. Also, compiled statements are very inexpensive, since all the accountant has to do is throw some unverified data into a statement format. The accountant shares no risk by doing this, since he/she is not expressing an opinion as to their accuracy.

Loan committees know that compiled statements are pieces of shit, and take that into account when deciding on whether to grant a loan. However, sometimes compiled statements are able to get loans approved, usually because an "agreement" has been reached between the borrower and the lender.

[stopdiggin]

3. thanks.

in other words - the gold standard - and then something resembling liar's poker.

[Cracklin Charlie]

2. Cool!

That girl was my best friend!

She was/is great at everything, and I love her for it.

[Hermit-The-Prog]

4. Glad I didn't have to sort that complicated mess!

[Liberal In Texas]

5. Nicely done!

This is like something I'd do LOL.