Economic and finance

I thought the only way a bank earns is getting interests from its customers who have bank loan. So if you loan $500,000, a bank might earn the interest of $200,000. Of course the bank still needs to pay interest to the customers who deposit a sum of money but it'll be much lower, so a bank will have an overall earnings.

Then my mum told me another way a bank can earn money, in a way like BIA. When a bank has an amount of money, it will lend the money to other banks from say other countries for say three days or over the weekend, and earn the interest. Then the staff has to evaluate the 'cash position' instantly and quickly 'invest' their money in other banks again. All these are done electronically. No true money is exchanged.

Then my mum talked abt Big Four, the international auditing companies and how tricky the auditing job is. A company might fake up their a/c to attract more investments from the shareholders. But their earnings might not be what they present in the a/c. That's when auditors come to play.

However, it's impossible for auditors to check all the stocks and the monthly accounts of the year and make sure everything is right. They usually pick out the accounts of a few months randomly and do the auditing. And when the company collapses, the auditors will be sued by the shareholders for not evaluating the accounts properly. Monthly auditing can be done but it's usually done by internal auditors, not the public auditors. And it costs way higher.

ACCA holders are employed in China for B$10,000. That's really high... Here, hah, forget about it. It's quite sad for the people here who have ACCA, e.g. my bro. He worked in s'pore but there were hell many accountants and many have ACCA. So my bro came back here. I think it's really a sad thing when you are not given the chance to demonstrate your strength and get a well-deserved earnings.

p/s zakiah sent me an email 'you think english is easy?' Unfortunately, I have never thought so!