w-9 - I. A History of Frauds a. Ponzi i. Convinced some...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
I. A History of Frauds a. Ponzi i. Convinced some people to invest money in a financial instrument ii. Investors only have to wait for a return iii. Creates buzz, leads to more investors iv. Scammer uses new money as returns for earlier investors v. Eventually scammer leaves or market collapses and they are caught b. Enron i. Used loopholes to hide billions in debt ii. Lost 11+billion, 21,00 employees in 40+ countries lost jobs, Arthur Anderson folds, Senators Sarbanes and Oxley propose legislation c. WorldCom i. Ebbers found guilty of orchestrating 11bil fraud ii. Underreported interconnection expenses with other telecomm cos by capitalizing these expenses iii. Inflated revenues with bogus accounting entries II. Are Accountants Accountable a. Firms inspected Madoff’s books and books for “feeder” funds i. Didn’t realize fraud 1. Claim their job is to make sure numbers add up not to detect fraud III. Ethics a. Business leaders only trusted by 31% of people b. Ethical Issues in AIS
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
i. Misappropriation of assets ii. Financial reporting disclosures iii. Oversight of contracts iv. Information technology usage v. Purchasing and kickbacks vi. Letter vs spirit of internal controls vii. Use of estimates, budget forecasts viii. Risk assessment, lack thereof, enforcement c. Ethics in not just… i. Religion ii. Following the law iii. Following cultural accepted norms iv. Feelings v. Science d. Ethics is i. Assumption that people are basically good, rational, free to make “right
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/19/2011 for the course BUS 315 taught by Professor Frank during the Winter '09 term at Indiana.

Page1 / 8

w-9 - I. A History of Frauds a. Ponzi i. Convinced some...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online