🤓These two/others like them have often over the years misrepresented my statements about auditors and/or straw manned arguments on this point so let me try again. This is not an exhaustive response - there are many points but I don't have the time or inclination to write up the position yet again. These two are blocked but not because we disagree - a common lie. I never block anyone just because they disagree.
On to the substance:
1. Auditors are not responsible for nor find all fraud. Nobody would ever suggest they were or did. I do not suggest I am expert on audit (I am a lawyer by training) but I do have much expertise on being subject to audits, the fall out from faulty historic audits in high profile situations and an understanding of how it can happen.
2. My argument is not that big 4 consultancies (he means auditors) found no issues although it is true that the accounts of all of the companies involved have always been given unqualified audits by the full range of auditors (the companies involved all have different firms - some Big 4, City BDO).
3. It is very concerning that an apparent CEO and a regulated accountant appear to believe it is "extremely easy" for a group of companies plus a middle man to engineer long term fake £300m sponsorships. I disagree. On the contrary, this kind of conspiracy is rare and is not easy for obvious reasons. It needs contracts to be signed, lawyers to be involved, multiple internal operatives to comply, finance people at all levels involved to comply and then represent to the auditors, shareholders, debt providers and other stakeholders that all was legitimate. It needs express, outright lies and, importantly in this situation, for those parties to all double down and lie again when put to them in investigations and under oath. The fact that Enron happened is not a counter argument - major accounting fraud happens but the fact we know the handful of names tells you how rare it is.
4. A cursory look at Etisalat, Etihad, CFG, their directors, their auditors, lawyers, banks, advisors, investors, debt providers and each of their respective regulators will tell you instantly that these are not the most likely co-conspirators to fake agreements worth £10ms year after year before, during and after UEFA, Der Speigel, PL, and media allegations.
5. Even if BDO could not identify any issues prior to 2018 (and given a lot was laid out well before 2018, I doubt BDO never asked any relevant questions about CFGs biggest and obviously highly material contracts and counter parties), once 2018 and the various investigations and charges were laid, BDO would have had no option but to ask difficult questions relating to the charges, documents, allegations, media commentary, maybe even MHs forensic document analysis etc. The local audit team would have, in all likelihood, been asked by their superiors whether they were sure they were not sitting on a time bomb and what procedures had satisfied them as auditors. The idea an auditor could not ask questions about allegations of off book payments or disguised equity is just not true. In the face of the allegations, professional scepticism if nothing else demands it. So at least 5 (its more but stick with 5) full audit processes have taken place with these allegations (the ones MH says are blindingly obvious) in full sight and with the PL in particular providing a catalogue of questions for the auditors. The same concerns could also have been raised at some of the alleged co-conspirators (we know Etihad's CEO expressly dealt with the allegations in interviews). Questions of related party issues will also have been dealt with multiple times.
6. Of course, people like these two believe City's directors and all the other alleged co-conspirators lied originally so would simply keep lying for a decade to cover up these conspiracies. Presumably they also think that all of the formal director's representations to auditors and all other parties that asked questions related to these matters were also all lies - year after year including after the documents became public and after formal investigations were launched.
They are entitled to that view (although it may turn out to libellous), but it all seems rather unlikely to me as I have explained all the way through this.
It is true that accountants like MH are adamant that accountants are not capable of asking difficult questions to uncover wrong doing and believe that I am naive for believing they can. A lot of accountants seem to have a dim view of their fellow professionals which is concerning but my experience in 30 years of professional life is that people and systems generally work, that people aren't generally idiots and don't generally outright lie. This is also any tribunal's starting point.
Where it lands, we will see soon enough. As ever, if there has been a multi-year, huge conspiracy, with outright dishonesty, the punishment will be severe.