The financial statements contained significant departures

Assignment Help Business Management
Reference no: EM13866164

1. An eight-month investigation by OFHEO concluded that slack standards at Fannie Mae created a corporate culture that emphasized stable earnings at the expense of accurate financial disclosures. What is wrong with having stable earnings over time? Answer this question with respect to stakeholder interests.

2. Fannie Mae corporate governance system failed to identify excessive risk-taking. Describe those risks and the mechanisms that should have been used by Fannie Mae and KPMG to enhance risk assessment. To what extent do you think the risk-taking at Fannie Mae was due to moral hazard?

3. According to the case, KPMG failed to review Fannie Mae significant accounting policies for GAAP compliance. One item in particular was the failure of Fannie Mae to make a quantitative estimate of losses on its loan portfolio. In the end, KPMG gave an unqualified (now unmodified) opinion even though the financial statements contained significant departures from GAAP. What ethical and professional standards did KPMG violate in taking that position?

Reference no: EM13866164

Questions Cloud

Explain the primary priority rules for job sequencing : Explain the four primary priority rules for job sequencing. In what instances at the Nissan car manufacturing might each rule be most advantageous? When would each rule be most disadvantageous
Uses the perpetual inventory system-amount of gross margin : Barton Company uses the perpetual inventory system. The company purchased $13,000 of merchandise from Banks Company under the terms 2/10, net/30. Barton paid for the merchandise within 10 days and also paid $895 freight to obtain the goods under term..
Compute the bonds issuers gain or loss on this transaction : A 1000 face value bond had a book value of 900 and unamortized issue cost of 20 12/31/08. The bond is extinguished by repurchase at 105. A. Compute the bond's issuer's gain or loss on this transaction. B. Compute the gain or loss if the bond were cal..
What are at least 5 criteria that must be considered : What are at least 5 criteria that must be considered when locating a new or expanded shipping warehouse domestically?
The financial statements contained significant departures : According to the case, KPMG failed to review Fannie Mae significant accounting policies for GAAP compliance One item in particular was the failure of Fannie Mae to make a quantitative estimate of losses on its loan portfolio. In the end, KPMG gave an..
Erins taxable income must be adjusted by what amount : Brian and Erin have $1,800 of non business capital gains, $4,000 of non business capital losses, $2,700 of interest income, $18,200 of itemized deductions (none of which are personal casualty and theft losses), $6,500 of business capital losses, and ..
Benefit from cooperative control : Two robots are shown in Figure 14 cooperating with each other to manipulate a long shaft, before they insert it into the hole in the block resting on the table. Long-part insertion is a good example of a task that can benefit from cooperative cont..
Please identify a contemporary management challenge : Please identify a contemporary management challenge such as: Globalism, Ethics, Fracking by the natural gas industry, Social Responsibility, creating a corporate culture, approach to doing business.
Prepare cost of goods sold section for year ending : The trial balance of A. Wiencek Company at the end of its fiscal year, August 31, 2017, includes these accounts: Inventory $19,500; Purchases $151,500; Sales Revenue $196,000; Freight-In $4,300; Prepare a cost of goods sold section for the year endin..

Reviews

Write a Review

 

Business Management Questions & Answers

  Statistical thinking in health care

Case Study 1: Statistical Thinking in Health Care Due Week 4 and worth 150 points Read the following case study. Ben Davis had just completed an intensive course in Statistical Thinking for Business Improvement, which was offered to all employees of ..

  Explaining product crises in nestle- infant formula

Address one of four product crises: Nestle- infant formula in the third world; Bridgestone/Firestone- tire shredding; Exxon- Valdez oil spill disaster in Alaska.

  Express the excel tools used for these tasks

Express the Excel tools used for these tasks also the information required to obtain the rental payment.

  Major processes involved in risk managementlist and briefly

major processes involved in risk managementlist and briefly explain the six major processes involved in risk

  The strategic concepts

Select a company in the news and apply one or more of the strategic concepts from Chapter 1 to the company. Be sure to state what concept and page from the textbook you are applying. Examples could be such concepts as romantic view of leadership vers..

  Explaining decision-making model

Briefly describe your experience in using the three decision-making models as applied to this scenario.

  What is the basis for their support that is what are the

1. security is not simply a technology issue it is also a business issue. discuss the implications of this statement.

  Develop the segmentation and targeting

You want to develop a new brand of running shoe. Develop the segmentation and targeting and positioning strategy for marketing the new product

  What are the assistances to boeing of outsourcing

What are the assistances to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the possible risks? Do the welfares outweigh the risk?

  How does informational strategy

How does informational Strategy (IS)  impact the 3 managerial levers: organizational, control and cultural?

  Explain conduct research on the various human resources

Explain conduct research on the various Human Resources competencies that are needed in multi-national organizations.

  Rhetorical devices

Prepare a short paragraph that contains a specific rhetorical device and It may be on any topic used for persuasion - Rhetorical Devices

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd