PHI 2397 Lecture Notes - Lecture 9: Paternalism, High High, White-Collar Crime
7 Feb 2018
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Text: loo(cid:373)is, (cid:862)lies, da(cid:373)(cid:374)ed lies, a(cid:374)d ma(cid:374)aged ear(cid:374)i(cid:374)gs(cid:863), pp. (cid:1005)(cid:1007)(cid:1006)-139. Underlying meaning is that this is contradicting you are contradicting your own morals and culture on which the business is run. No easy task to take on white collar crime as a prosecutor in terms of accounting because there are so many ways to hide information. 1-revenue recognition: someone who exaggerated their earnings, overstate and understate your costs-accounting fraud. Another (fraudulent) use the costs of restructuring costs to hide operating costs. 3-cookie jar reserves-hold back earnings, hide earnings like in a cookie jar and then in years where it is not going well to funnel into your bad earnings to smooth everything out. They can be a problem- investors usually cannot detect if they exist. Text: cohen, (cid:862)arthur anderson refugees reflect on what went wrong(cid:863), pp. Main point: anderson consulting, was the consulting firm involved in bankruptcy and payed a huge price.
