Jessie McKenzle, the CFO of hopeful Corporation:
Good Morning ! I'd like to talk to you about moving a large portion of our cash reserves to an investment that I've been researching in Croatia. I've analyzed the computer's annual report 10 times, ran the number twice. And even spoken to my buddy who is an exceutive at the company. We've got to make this investment! The sooner , the better so that we can maximize the company's returns before the investing public realize what gold mine they've been passing up!
Lee Notorlous, the Treasurer of hopeful Corporation
Croatia?!?!?! Croatia is an ECM. The country probably hasn't even developed sufficient corporate reporting policies and procedures to supply the information necessary for making investment decisions, let alone relyon them . What did your analysis reveal about the country's accounting and auditing profession , in addition to its accounting and legal instrastructurE ?
Prepare a two to three page memo to the CFO and treasurer addressing whether the company should invest in this opportunity.
Be sure to include what the CFo didn't take into account in the analysis and why investing in an ECM is risky. Lastly, are there any ethical issues?
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