The Economist 5 March, VW former boss had been handed a memo informing about “inconsistencies in emissions from its diesel cars.” “..it is not known whether he read it as it was included in a batch of extensive weekend mail”
Does anybody know how many people were involved in writing that memo? Does anybody know how many phone calls and meetings there were where the memo was discussed?
…these executives were still paid their high salaries and bonuses,…because they did not know!
Few minutes later, there I was going, on a nearly impossible mission: to convince General Manager and one of the founders of a medium size company that the financial statements, in particular the profit and loss account, had to be adjusted significantly. Otherwise we had no other option but to issue a qualified audit opinion.
The company was at risk of heavy losses in contract liabilities, thousands of contracts had to be reviewed, there was only two or three months time to do it and it was just me…..
The root cause of these contract liabilities? an aggressive growth strategy with no monitoring on the terms agreed with clients. Growth at all costs?
In less than a month in the role I found out that the company was about to stop payments…..
And there I was staring through the window, wondering whether I should quit or not. The task ahead was daunting.