(Kohn, 2004) For example, Madoff’s ponzi investment scheme showed investors double digit annual returns on their investments, when in truth the money went straight to Madoff’s business bank account with Chase Manhattan Bank.Whenever an investor would request a redemption, Madoff’s firm would pay using funds from new investors, the excess being sent straight to the Chase Manhattan account.
For example,“Section 404 of the Sarbanes-Oxley Act requires each issuer’s annual report to include an internal control report which shall …
contain an assessment, as of the end of the most recent fiscal year of the issuer, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.
Recent corporate scandals from Enron to World Com have focused people’s attention on corporate governance-especially the effect of failure by corporate gatekeers.
With a substantial interest in improving corporate governance to prevent future scandals and losses, sholars of corporate governance have set researchs on the performence and the liability on of the professional advisers of the board and the shareholder-corporate lawyers, independent directors, auditors, rating agencies, financial advisers, and government regulators.
You can view samples of our professional work here.
Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of Law Teacher.
Notwithstanding whether it has reduced America’s international competitive edge against foreign financial service providers, the direct corporate governance provisions of the Act, such as the mandating of extensive internal controls, may be more costly than beneficial., and the Act’s gatekeeper-related provisions may not go far enough.
In order to demostrate the effect of the gatekeepers, this essay will first difine the concept of the gatekeeper to know who are the gatekeepers in corporates and show some differences among gatekeepers.
The investment scandal perpetrated by Bernard Madoff is the largest financial fraud in the history of capitalism.
It is believed that Madoff’s secretive investment advice firm caused a loss of nearly billions for the 4,000 odd investors who trusted his firm with their wealth.