Ich versuche dir mal irgendwie zusammenzustiefeln was ihr am Tesal AFS nicht passt.
They never make profits, they have a large bank balance and they acquired a company where there’s 79 mil goodwill, they long term debt is almost double the cash? Why are people paying so much goodwill for a company???? Also, they AFS are different. They format. But I never saw what interest comprised of. I asked my friend about the ACcounts receivable increasing. From what I gathered, it’s basically saying they verified the numbers by testing internal control. What that means is that, you not checking the numbers substantively. So the world audits using ISA - International Standard of Auditing. The world uses IFRS. But the States? Nope, they use ASC/PCAOB I think for auditing and US GAAP for accounting. So PCAOB makes them test internal controls for listed entities. Per quarter. So then, in ISA, you can NEVER just test things using internal controls only. You must test substantively to. All you doing with internal controls is verifying someone is performing a control. So is the supervisor inspecting the reconciliation? Yes or no? Is the manager inspecting provisions at month end? Yes or no? Basically, you being HR. You legit checking if a function was performed by a person. But,if you think about, if you so busy being HR, and that’s all your audit report says, you tested internal control, did no one test anything substantively? So if all I check as the auditor is that a supervisor inspected reconciliations performed, who is looking at the actual numbers? How do you know the reconciliations were performed with the right numbers. Or the supervisor did it correctly? You need to get that reconciliation and trace amounts, check if it makes sense, follow up on reconciling items...etc etc. But no, it appears they only tested internal control to verify the numbers. So they telling you guys, everyone at Tesla in the accounting department is performing their function as per the law. Whether the numbers are right or not, well that’s not mentioned. Oohhh I think except for the Critical Audit Matters. They tested that substantively it seems. Don’t get me wrong internal controls are relevant to test, but it gives no reliance on the numbers. But again, we use different standards.
Last but not least, also their inventory increases. And I didn’t see interest expense excluded in the cash flow. But I also haven’t gotten to the notes yet. Maybe I missed it.
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