Quote from: IrishFutbol on March 06, 2014, 04:06:20 PM

Quote from: QuestionAuthority on March 06, 2014, 06:27:15 AM

Quote from: IrishFutbol on March 05, 2014, 10:31:28 PM

Quote from: QuestionAuthority on March 05, 2014, 03:16:34 AM

Sounds great but can we use a real company instead of Ed's uncle Fred.

How about Deloitte? They shouldn't cost more than a few hundred thousand for a full audit. http://www.deloitte.com/view/en_US/us/index.htm

Probably wouldn't work.

1. It would be more than a couple hundred thousand. Deloitte would want a fee for the audit, and then they would demand that the company hire a ton of staff and create a compliance department to ensure these controls were maintained throughout the year. Additionally, a company would have to hire additional staff to handle all of the annual documentation around the controls (Deloitte won't just want to see that a company has controls, Deloitte will want to see evidence for every transaction that the control is being followed).

2. If it's not industry wide, people will flock to the unaudited exchanges. Unaudited exchanges, or exchanges audited by non-reputable firms like the guy who audited Madoff, will be able to charge lower transaction fees than any exchange audited by a major auditor. People currently have no issue throwing cash into unaudited exchanges, so what makes you think people would suddenly pay more to go into an audited exchange?

It would work well. The problem is no one is willing to pay for quality. They would much rather bitch that they lost it all rather than pay a high fee. These fucking idiots don't deserve Deloitte or Price Waterhouse. They deserve exactly what they get - worthless fucking peer review. Two respected TBF members went to help MtFux in 2011, found a shambles with a clueless CEO and said nothing about it to anyone.

Your quality comparison reminds me of another problem. Ask a Big 4 firm to audit a company that maintains deposits, and they're going to want to confirm the balance of those deposits with an investor. This will be done by mailing a letter to the depositor's home address. Accounting firms cannot just confirm balances through email, meaning the exchange would have to collect and maintain actual names and addresses for all depositors. So in addition to the fees, people would now have to attach their true identity to their account.

Gox was already doing that and collected a photo ID from everyone with an account. It was part of their mandatory legal requirements. Problem is, they got hacked and the database was stolen because their software was written by a fat idiot with the intellect of a 12 year old with a Starbucks addiction. Now everyone's Photo ID and personal information are loose on the web. Isn't that special! We want to make sure we review these people ourselves. For Christ's sake, don't let an independent impartial respected third party with a reputation to protect do it. They'll fuck it all up.