Oireachtas Joint and Select Committees
Wednesday, 28 January 2015
Committee of Inquiry into the Banking Crisis
Context Phase
Professor Edward Kane:
Unless auditors also try to audit and establish the value of the taxpayers' position, they are not doing the whole job. All of these tricks, when there is a troubled firm, transfer losses to taxpayers. This transfer should be measured. Auditors have not yet come to grips with this view of potential taxpayer bailouts providing equity. However, if one thinks of it as equity, auditors have to change their job and information systems have to change to adapt to this.