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Bernie Madoff's story is a very interesting tale of greed and deception. The actions of him and many of his associates present interesting questions about the occurrence of crime in financial industries. The purpose of this essay is to analyze the behavior of Madoff and his involvement in his ponzi scheme. This essay will also investigate some of the laws that exist to control white color crime and contrast those laws to street crimes. Finally this essay will examine how cultural norms with regard to white-collar crime has shifted in the last decade and the impacts of those shifts.
It is impossible to understand totally what Bernie Madoff was thinking as he conducted his scam. It appears that greed and the desire to appear successful and rich may have contributed to his behavior. The upper echelons of society are very competitive and many will do anything to win.…… [Read More]
Bernie Madoff's Fraud
The United States economy has experienced tremendous challenges related to financial practices including illegal fiscal activities and practices. An example of an illegitimate financial activity that hurts the country's economy is Ponzi schemes and other fraudulent activities. The largest Ponzi scheme yet was orchestrated by Bernie Madoff whose fraudulent mechanism crossed several continents. Bernie Madoff's scheme is regarded as the largest one yet since it took something bigger larger than the scheme to bring it to an end i.e. The 2008 global economic recession. Bernie Madoff's success in conducting the fraud provides insights regarding the operations of Ponzi schemes, human nature, and the role of regulatory agencies in preventing and dealing with fraudulent financial activities.
A Ponzi scheme is basically defined as a financial investment strategy that promises large returns to investors. However, the scheme differs from valid investment strategies on the promise that payment to investors…… [Read More]
Describe three types of illegal business behavior alleged against Mr. Madoff and for each type of behavior, explain how the behavior is illegal or unethical in the conduct of business.
In the general sense, Madoff was accused of running a Ponzi scheme. This is a form of "pyramid scheme" in which essentially returns are paid to existing investors out of the principal being taken from new investors, eventually leading (as Madoff's scheme did) to a collapse when the entire system runs out of capital and investors cannot regain any of their own investment. Here is the official definition offered by the SEC (2011):
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit new investors by promising to invest funds in opportunities claimed to generate high returns with little or…… [Read More]
Although Bernie Madoff eventually received justice for his crimes, the case study reveals the structural problems inherent in the Securities and Exchange Commission (SEC). An independent financial fraud investigator, Harry Markopolis, had delivered a critical smoking gun to the SEC, which summarily ignored the information. The situation suggests corruption at the highest levels of government and finance, if not full collusion and conspiracy.
One of the problems with the SEC is that it seems to be deliberately populated by personnel who cannot actually prevent financial fraud. As the case study points out, the SEC personnel primarily consists of young attorneys and “lifelong government employees,” many of whom end up working by the very same investment firms that were under SEC investigation (p. 2). Another problem with the SEC seems to be its lax attitude towards financial fraud, evident by the way it dismissed the Markopolis information out of hand. The…… [Read More]
That immediately lead Markopolos to suspect that Madoff might not have ever even traded shares at all but was simply managing a tremendous Ponzi scheme, disguising the dispensation of new clients' money as dividends and investment income paid out to exiting clients (Markopolos, et al., 2010).
However, Markopolos also suspected that Madoff was involved in an illegal operation for a reason entirely distinct from any of the sophisticated mathematical methods that he used to analyze the supposed trading strategy itself. Specifically, he suspected Madoff because his professional behavior was so bizarre: Madoff, head of a prominent New York brokerage firm, would maintain a secretive money management business operation "on the side" of his mainstream business and why he would furnish his hedge fund management services to his hundreds of wealthy investors without ever charging a fee for his services (Leor, 2010; Markopolos, et al., 2010).
Markopolos's Multiple Unsuccessful Attempts to…… [Read More]
Madoff and the Ethics of Business
The author's viewpoint is objective and factual: it relates the episode in history regarding Bernie Madoff's "ponzi scheme" and shows how he was able to pull it off for so long, essentially lying to all of his clients, regardless of their individual worth and/or fame (Stanwick, Stanwick, p. 258).
The major issue presented in this case is the lack of transparency that Madoff showed (a major ethical issue) and the too-good-to-be-true promise of returns that no one else in the investment sector was able to give. Another issue was his closed trading system as well as the fact that there was no correlation between Madoff's reported trade volume and the volume of the S&P options market -- someone was lying. Why the SEC failed to find any evidence of wrongdoing for so many years on Madoff's part should raise questions about the credibility of…… [Read More]
Business Ethics - Contemporary Case 2: Madoff's Investment Firm
The investment Ponzi scheme of Bernie Madoff and his hedge fund for wealthy clients was a major violation of ethics by Madoff, as he showed a severe lack of transparency (hiding his actions and never divulging how his trades were profitable) and a consistent habit of lying to clients by using one's fund to pay off another. Madoff's investment firm was essentially based on deception: he promised extraordinarily high returns on investments made the world's wealthy elite -- and so long as they did not all attempt to withdraw their investment at the same time, and so long as new investors continued to come to the firm, Madoff had enough capital on hand to pay out the promised returns. The fact that he did not actually make profitable investments with his clients' money, however, while claiming that he did so, is…… [Read More]
Madoff Securities case occurred because of fraudulent investment schemes due to lack of regulation as well as insufficient oversight of specific financial intermediaries along with dismissal of opportunistic behavior. To understand why such an incident happened in the first place, it is important to identify the kind of scheme led by Madoff. It is called a Ponzi scheme. In a Ponzi scheme, an unsustainably big pool of investors must be maintained to keep it afloat. It begins with a simple promise to a few investors of doubling an amount they decided to invest. Rather than investing that money and doubling it, the person involved in the scheme takes money from a successive round of investors and the scheme continues (Knapp, 2011). The formula is ROI-R-I.
The reason why the Ponzi scheme went unnoticed for so long was partly because of Madoff's reputation and a huge regulatory hole. This major discrepancy…… [Read More]
Over the course of time, assertive laws are evolving which are supposed to deal with any issues quickly. This means that all financial firms will face higher costs and greater amounts of time in complying with these new guidelines. ("Dodd Frank")
Clearly, the Bernard Madoff scandal reshaped investor confidence and the regulatory environment. This is because many of his clients suffered tremendously from the firm's activities. In some cases, individuals were forced to sell their homes. While at other times, many nonprofits were forced into bankruptcy from being overly exposed. This resulted in the trustee utilizing aggressive tactics in recovering assets.
These actions set the stage for regulators, actuaries and fiduciaries to begin taking a more assertive stance when protecting the interests of the public. As a result, much stricter guidelines are being imposed. These areas are impacting the operating procedures of firms and how they are accounting for…… [Read More]
Ethical behavior of a person or a corporation greatly affects the stakeholders with which that person is involved. Often, people and companies take serious consideration when it comes to those stakeholders, and they work to take good care of the people who are involved with them (Keller, 2002). There have been cases, though, where ethical behavior has been ignored in the name of profit. Eventually, most companies and people who ignore their ethics are caught and punished, but not before they end up harming the financial and emotional lives of many of their stakeholders. Plato once said that the nature and the origin of justice was that men who were capable of doing wrong to other people would often do so. He also said that men who did not have enough strength to keep themselves from being harmed by others would not do harm to other people.
In other words,…… [Read More]
Thomas Pynchon, Bleeding Edge
One hallmark of postmodern literature is a willingness to mingle high and low registers, and to subvert popular and recognizable genres of literature with material that might seem foreign or that frustrates customary expectations. By any standard, Thomas Pynchon is one of America's pre-eminent postmodern novelists, and his 2013 novel Bleeding Edge follows both of these customary procedures. I hope to demonstrate that Pynchon's purpose in Bleeding Edge is twofold: he is engaged in "historical fiction," but of a peculiar sort -- writing about the very recent past, in a novel that covers the events of September 11, 2001 -- and he is also writing a postmodern detective novel. In both ways, Pynchon is able to indulge a crucial theme which critics have identified as being central to his work as a whole: the idea of paranoia.
On the surface, Bleeding Edge would appear to be…… [Read More]
In the first-round survey, a majority of investors cited diversification as their main objective in allocating to hedge funds. Among the second-round interviewees who were planning to increase their target allocations by 10% or more, half named diversification as the motivating factor. Among the approximately one in ten who were planning to decrease allocations by at least 10%, concern with a lack of transparency was the most frequently cited reason.
(4) Institutions are thinking and acting as long-term investors. While almost a quarter of second-round interviewees said they have liquidated some investments or plan to do so, overall the investors surveyed showed no inclination toward a long-term exodus from hedge funds. This is understandable, considering that 93% of all interviewees said they make hedge fund investments with a time horizon of at least three years, and more than half have a time horizon of five years or more.
(5) Investors…… [Read More]
Economic crash can be viewed from a number of perspectives ranging from causes and effects to the 2008 Crash's resemblance to the Crash of 1929, which began the Great Depression. This paper will consider the 2008 recession from the standpoint of the financial banking industry, which, according to economic journalists like Matt Taibbi (2010), played a major and significant role in the crumbling of the nation's economy -- just like it did in the Lawless Decade also known as the oaring Twenties.
Big Banking Meets Big Government
What has now become known as the Era of De-egulation actually had its beginnings in the 80s decade known just as much for its rampant excess as the early 20s were known for their unbridled lawlessness. Yet, while the latter enjoyed the snubs-to-the-law bootlegging speakeasies, the former enjoyed the merging of the financial sector with the political -- which began during eagan's tenure…… [Read More]
August 06, 2014
Business and Religion
IPS Integration Essay
Cognate/Career Synthesis Paper:
Incorporating a Christian orldview
Presented in Partial Fulfillment
EDU 400: Capstone
06 August 2014
Business and Religion Synthesis:
Incorporating a Christian orldview
Incorporating a more Christian worldview would be largely beneficial to a range of careers as such a perspective can help guide all endeavors along a more moralistic path. The last decade or so has brought us some of the most staggering corporate scandals that the human race has ever known. These were scandals which crippled the economy and which brought the nation to untold amounts of financial struggle and unhappiness. To this day, the government and private businesses are still working manically hard to dig the country out of a completely destructive great recession. The more we understand how such corporate scandals were started and…… [Read More]
working on financial practice problems can help students to apply key concepts and principles.
Understanding various financial practice problems will help all students to ensure that they have a foundation for knowing how money and the world of finance works. This is important because, it will serve as foundation that will allow everyone to be prepared for: objectively evaluating their business, personal finances and investments. Once this takes place, it means that we can make more prudent financial decision by: avoiding common mistakes. As, these tools will help everyone in: identifying potential frauds and it will give us a sense of reality. This is the point that these ideas will prevent us from making critical errors that could have a dramatic impact upon: our net worth and the kinds of decisions that will have an effect on our future.
A good example of individuals who were never able to learn…… [Read More]
The corporate scandals of the last fifteen years have brought the issue of corporate accountability to new light, adopting at times a center-stage discussion. When the Bernie Madoff scandal broke, many professionals turned to the accounting department at Madoff Securities along with the auditors who had audited the firm before. Madoff was the one who admitted to stealing $50 billion dollars during the decades that his firm was open -- even though his firm hadn't purchased securities in over 13 years. Such an admission of guilt demonstrates that without strict and enforceable tenets of corporate accountability, $50 billion dollars really can just disappear. Thus corporate accountability is something that needs to be fostered both internally and externally: if it is only enforced and fostered in one way, then this imbalance is doomed to create failure along with other ethical sunsets.
In order to properly enforce corporate accountability, it…… [Read More]
corporate form of "the business corporation," its structure, prerogatives, and procedures, leads to ethical problems arising, or being difficult to resolve. Ethics in business has always seemed to be a struggle, because the main purpose of a business is to turn a profit, and for some businesspeople, that may be at any cost. However, after scandals such as Enron, WorldCom, and Bernie Madoff, among others, business ethics has emerged as an important part of a healthy business environment. The smart business corporation knows ethics and corporate social responsibility (CS) are an important aspect of their daily operations, and yet, businesses still seem to overlook that ideal at the most inopportune times.
The Business Corporation
What is a business corporation? To begin a discussion on ethics, it is important to first define a business corporation. A business corporation is a company doing business that enjoys certain legal protections as a corporation.…… [Read More]
Those discretionary areas include sales and negotiating. These are open to flexibility, argument, discussion -- all within boundaries. The boundaries that fence them in are the non-discretionary functions of the business, those areas where the lines must not be crossed.
The non-discretionary areas have very firm guidelines, rules, and even laws and regulations that guide what can and cannot be done. It is when we violate those guidelines, that we cross ethical and/or moral standards whether or not we actually violate the law. There is no compromise in the non-discretionary areas. usiness ethics can be a very personal function rather than organizational (Cagle, Glasgo, & Holmes, 2008).
As an example, safety is non-discretionary. Safety procedures must be enforced and employees have to follow them. There is no negotiation or flexibility. If the company does not establish proper safety standards but no one gets hurt, is it a violation of business…… [Read More]
What needs to happen is that economic stimulus aimed at savings and investment, not necessarily nationalization of financial institutions, needs to occur. There is a difference, and with nationalization there is the assumption of risk by a government which will naturally be one of the most risk-averse, and therefore unable to capitalize on economic growth mindsets there are. A financial strategy of seeking to infuse greater levels of trust in financial institutions by tighter regulations on them and the development of programs to get the most critical of resources, oil and gas, free form inflation, is essential for a recession to not be prolonged due to inflation. Stabilizing these two factors, GNP and controlling inflation, are what can restore trust in an economy and help it to turn around. There are no quick fixes to a recession, rather the gradual spiral that creates one need to be used to get…… [Read More]
Too many leaders today do not see much as necessarily bad or good, and they simply go through their life without realizing there is so much more out there to be done and seen, just like the people in Plato's Cave. They have blinders on -- some of which are part of society, and some of which are self-inflicted. If only they would break out of the chains which enslave them in that Cave they could climb up into the light where they could truly see, and they would be aware of all the beauty and wonder in this world.
Unfortunately, the people in the Cave choose not to make an attempt at going outside, and because they do not strive to see more and to learn more, they do not teach the children to see more and to learn more. The cycle simply perpetuates, and this is the case…… [Read More]
Unfortunately, determining which fund to go with for a retail investor is difficult, as there are many unscrupulous fund managers who might seek to take advantage of the fact that they are playing with other people's money and making (at least) the management fee. This can lead even scrupulous hedge fund managers to take unnecessary risks.
The danger of hedge funds being mismanaged truly cannot be overstated. For example, Bernie Madoff ran a large exclusive fund and while it was a Ponzi scheme, which while illegal and with "fantasy returns," that sophisticated investors most certainly should have realized were not realistic, Madoff continued to be able to bring in investors. However, Madoff's investors were all relatively financially sophisticated people with huge assets. While his scheme caused them financial damage, the damage was manageable and it was confined to a group of people with assets that greatly outstripped those of the…… [Read More]
Judgment in Managerial Decision Making: The Ponzi Scheme
Everyone makes decisions, both good and bad, throughout their lives. ecently, there has been quite a bit of talk about the bad decisions that businesses and their executives have made. Issues like the stock market and sub-prime mortgage issues have financially devastated some people, as have Ponzi schemes. These types of schemes create fraudulent investments that seen to offer great rates of return (Dunn, 2004). Instead of investing, though, the person running the scheme is using the investment money from new investors to pay the "dividends" of previous investors. More and more money is needed to sustain the scheme, but by the time everything collapses the original person running the scheme has pocketed and/or spent a huge amount of money (Dunn, 2004). Many people have been jailed for Ponzi schemes, as most people do not get away with them for very long…… [Read More]
This was despite the fact that he had the title as the "King of Rock and Roll" and was one of the most recognizable personalities in the world. Over the course of time, one could argue that because of his celebrity status and vast wealth that no could tell him to fix his life. Instead, he was surrounded by people who only told him what they thought he wanted to hear. At which point, the lifestyle choices that he made had a dramatic impact upon his health. In this situation, one could argue that critics of Pojman's ideas are wrong, where the life of Elvis was a rags to riches story that went astray. Instead, one could argue that the proponents of the theory would have an accurate interpretation of the situation, based on the fact that the overall levels of goodness within Elvis' soul would change over time. As…… [Read More]
On the subject of shareholders and adverse publicity, in the book Corporate Ethics and Corporate Governance, the authors mention how much investors / shareholders "hate" surprises, in particular when the surprises are caused by the "unethical behavior of senior managers…" (Zimmerli, et al., 2007, p. 155). In today's mass media environment it is a sure thing that some blogger, local newspaper reporter or national cable news talking head is going to find out that company X has hired a lobbying firm to basically bust the competition. hen this story hits the 24-hour news cycle -- and the media today is extremely competitive, so it is a given that several media outlets will dig deeper into the story and be less than objective in their reports -- the shareholders will be hit with the surprise they did not want to be hit with.
An embarrassing public relations disaster like this…… [Read More]
e. Paterno - would not have had the centralized power that he possessed. Instead of him being the lone arbiter of the team's interests and performance, he would have been controlled by the necessary third objective party that Paknis insisted should have been there to investigate each and every aspect of the team's functioning. Paterno would have been simply an actor within a larger democratic system of individuals objectively interested in the team's good and in their ethical performance. These would have included an objective and large area of stakeholders such as citizens, groups, elected representatives, and other appropriate institutions. In this way, Paterno would have been held in check and his mythical presence controlled by objectively elected representatives and citizens who would have taken great care to ensure that public interest, rather than personal interest, prevails. It is the leader's responsibility to enhance the team's reputation not to destroy…… [Read More]
Assessing the Current and Future State of The lifeblood of any business is the revenue it generates while managing costs, ensuring profitability of the business, and its long-term survival and growth. The catalyst of managing a business effectively is the use of accounting information, financial analysis, and increasingly in the 21st century, the use of real-time financial analytics on key performance indicators (KPIs) used to manage a business (Ferguson, Seow, 2011). Accounting systems continue to be the foundation of managing businesses to profitability while mitigating potential risks though insightful and real-time use of financial data. The future of accounting systems will be increasingly influenced by the real-time reporting and analysis as the Securities and Exchange Commission (SEC) has required the largest publically traded corporations in the U.S. To report their results through the extensible Business eporting Language (XBL) protocol (Tribunella, Tribunella, 2010). The SEC is setting a very…… [Read More]
Michael has no moral "right" to undermine their loan evaluation process even if he genuinely believes that the lender will not be harmed by the deception. After all, beliefs are always subjective and people in Michael's position can be very sure about what they genuinely believe but still be wrong.
One need look no further than the .S. housing market in 2007 to see what can happen when peoples' beliefs about the value of property and about the ability of borrowers to pay back loans are wrong. Therefore, Michael is acting unethically to misrepresent information to the lender that the lender intends to use to determine whether or not the loan to Kokomo is safe enough to issue. Michael probably believes (honestly) that the lender simply does not understand enough about Kokomo's business processes and competitive situation to make the "right" decision. He probably feels morally justified in lying for…… [Read More]
Firstly, in Piagetian manner, the subject is confronted with a moral dilemma, that is, a short story in which two or more moral principles oppose each other. He or she is asked to make a choice. Secondly, the interviewer uses intensive probing, that is, why-questions, and questions which stimulate the respondent to consider varying situational contexts. Thirdly, stage scoring of interview is based on well conceived and meaningful measurement units.Through the confrontation with moral dilemmas, the subject is stimulated to consider moral norms rather than merely technical knowledge of solving a problem (most people suggest a technical solution first, which seems an appropriate strategy in most every-day decision making).(Kolhberg)
There are six levels of leaders, according to the combined works of Jean Piaget, Lawrence Kohberg, and obert Kegan. esearch shows the majority of leaders are level four leaders or level five leaders. Level four leader 'Achiever' is categorized as…… [Read More]
Had the Saints not engaged in corporate social responsibility, they likely would have abdicated a significant proportion of their market base.
Another example of corporate social responsibility is the recent campaign by Coca Cola to save polar bears, which are an endangered species. The polar bear effectively represents the mascot for the Coke brand, and so Coke has a (manufactured) affiliation with the species. By financially assisting the global effort to save polar bears, Coca Cola acts as corporate philanthropists while at the same time garnering positive publicity for their efforts. In this regard, good ethics are again equated with productive business (Burton, Goldsby, 2010).
Alternately, companies that disregard corporate social responsibility experience substantial corporate loss. For example, the Miami Marlins baseball team convinced the city of Miami to publicly fund their stadium, under the premise that they would spend ample amounts of money to field a competitive baseball team.…… [Read More]
Public Policy and Service
Currently, I work on homeland security issues, with a focus on enforcing Federal egulations. My overall plan is to remain with the government with the likelihood of retiring from a governmental agency. My professional philosophy revolves around the nature of service, and I believe that my skills, enthusiasm and patriotism all combine in a better way by using my skills to help the United States.
Before this recent job change, I was a bank regulator. I transferred to Homeland Security because of its importance in the contemporary environment and its mission to protect America at home and abroad. When one stops to reflect a moment, we see that the world is a far different place than it was prior to the events of 9/11. In fact, as a direct response to the terrorist attacks on the United States in September, 2011, the Office of Homeland Security…… [Read More]
Skilling v. USA
The seminal court case that was Skilling v. The United States was an affirmation and confirmation that Jeffrey Skilling was rightly convicted and that he was not being railroaded. Much of this report will focus on the case itself but the aftermath will also be discussed. In the end, the case centered on the idea that Jeff Skilling asserted that he was wrong convicted, was not given a fair trial and that the entire proceeding was thus invalid as a result. The United States Supreme Court ruled against Skilling in all respects except one major one and he got a decade knocked off of his sentence as a result. This report will discuss the reason for that in detail. While guilty deserved to be punished for their crimes, they should be punished consistently with the intent, letter and actual verbiage of the law.
The analysis…… [Read More]
The Scope of Jewish Ethics
When one thinks of the ethics of any religion, behavior of the individual often comes to mind initially. However, the behavior of the micro informs the macro, as the creators of the code of Jewish ethics are well aware. This paper will examine the scope of Jewish ethics as they pertain to the economic and health spheres, two arenas where there needs to be strong connections to ethical codes. The scope of Jewish ethics pertains to all arenas and subjects where the safety, wellness, happiness and potential of the individual and collective are concerned.
Dorff and Mackler discuss that the Jewish tradition acknowledges that there is a collective duty to care for one another; this duty only pertains to what is reasonably within human power (321). However, as the authors suggest, this naturally brings up the notion as to how much medical care do people…… [Read More]
Madoff Investment Securities LLC (BLMIS) committed one of the greatest financial frauds in U.S. history. Investigations revealed that Mr. Madoff operated an elaborate "Ponzi Scheme" that started operating in 1980s.Even though Madoff was initially supposed to invest all of his clients' money in the securities markets, he never did so. Instead, he deposited the whole amount in a certain bank account that he held with the Chase Manhattan Bank. He therefore fulfilled his client's redemption requests using his own money. The fraud value was estimated at $50 billion and became a matter of public knowledge only after Madoff confessed to the crime. It can be regarded as the biggest financial fraud in U.S.'s history and it affected a large number of investors.The financial industry blamed the investors as well as regulators for neglecting the various warning signals that enabled Maddoff to continue with the fraud for several decades.
The Board…… [Read More]
The reality was that a company which aspired to be "the No. 1 stock on all Street" was instead steadily bleeding money while claim growth in the billions.
The pressure placed upon accountants at ordCom was reflective of the pressure facing accountants throughout the economy during this period of widely absence securities oversight. Indeed, the relationship between regulation and accounting is essential, and this diminished link would have catastrophic implications for the profession as a whole. Such is shown by the Scott text, which tells that "efficient securities market theory has major implications for financial accounting. One of these is that supplementary information in financial statement notes or elsewhere is just as useful as information in the financial statements proper. Another is that efficiency is defined relative to a stock of publicly known information. Financial reporting has a role to play in improving the amount, timing, and accuracy of this…… [Read More]
New Jersey's Budget Crisis
Matt Bai and David Leonhardt agree that the rising cost of state government and the lack of fiscal restraint on the part of local and state government leaders has lead us to the budget crisis that many states are facing in these uncertain economic times. There are three lessons to be learned from these two articles; local and state governments need to become more efficient, contracts negotiated with public employee unions need to be reasonable, realistic, and affordable, and American's need to lower their expectations of what the government is able to do with the resources available.
Matt Bai gives three reasons for New Jersey's current financial woes, first the state sends 40% of its annual budget to municipalities and school districts in order to compensate for the shortfall in revenue from local property taxes. Second, the state doesn't have the recourses to cover its pension…… [Read More]
Tyrell "Tank" Williams; South Bronx, New York City
When asked why people call him Tank, Tyrell Benjamin Williams responded, "because I'm huge and you can't stop me." This attitude is clearly represented in Mr. Williams' lifestyle of street crime and drug dealing. Tyrell was born in the Stuyvesant district of Brooklyn, New York on a cold morning in January of 1984. He spent his very early years in a traditional family in this relatively pleasant neighborhood. Though on the eve of Williams' entry into kindergarten, his father informed his mother than he had found another woman and he was moving out. Tyrell recalls this as one of the most traumatic experiences of his young life. He remembers looking up to his father and wanting to make him proud. When asked about his feelings directly regarding this experience Mr. Williams said he was "heartbroken."
After the separation of his…… [Read More]
hile it can be argued that auditors bear a degree of responsibility to evaluate management practices, Cousteau clearly took the view that on the whole the financial statements did accurately reflect the firm's circumstances; that the fraud did not constitute a widespread attempt to deceive the markets. Thus, evidence of fraud does not in and of itself render financial statements materially misleading. The nature and dollar amount of the fraud must also be taken into consideration, all within the context of the totality of publicly available information about the firm.
Braun, K. (2001). The Disposition of Audit-Detected Misstatements: An Examination of Risk and Reward Factors and Aggregation Effects. Contemporary Accounting Research. Vol 18, No. 1 (Spring 2001), pp.71-99.
Shunglu, V.K. (1998). Role of the Auditor in Promoting Good Governance. International Journal of Government Accounting. Retrieved September 7, 2009 from http://findarticles.com/p/articles/mi_qa3662/is_199804/ai_n8794931/
Babu, T.R.R. (2004). Audit Materiality. Oxford University. Retrieved…… [Read More]