Mortgage-backed securities (MBS) produced by New Century and other major subprime lenders were a focal point of attention during the recent financial crisis. Many parties maintain that the mark-to-market rule for investments in securities such as MBS contributed significantly to that crisis and that the rule should be modified, suspended, or even eliminated. Briefly summarize the principal arguments of those parties opposed to the mark-to-market rule. Do you believe that those arguments are legitimate? Why or why not?
Answer to relevant QuestionsIdentify what you consider to be the three most important “take-aways” or learning points in this case. Rank these items in order of importance (highest to lowest). Justify or defend each of your choices.Professional auditing standards discuss the three key “conditions” that are typically present when a financial fraud occurs and identify a lengthy list of “fraud risk factors.” Briefly explain the difference between ...What is the formal definition of a “material weakness” in internal control? How do material weaknesses in internal control differ from “significant deficiencies” in internal control? Identify the three material ...Compare and contrast the responsibilities of an audit partner of a major accounting firm with those of a large public company’s CFO. Which work role do you believe is more important? Which is more stressful? Which role ...Describe the general nature and purpose of a “walk- through” audit procedure. Are such tests required by professional auditing standards?
Post your question