Bruce Barnett Investment (BBI) is a prominent hedge fund on Bay Street in Toronto. Bruce founded the

Question:

Bruce Barnett Investment (BBI) is a prominent hedge fund on Bay Street in Toronto. Bruce founded the hedge in 2001 and today, BBI has 41 employees and manages close to $1 billion in assets.

Your friend Jenn had an internship at BBI over the summer and she was eager to tell you about her experience:

I was very lucky to get that job! There was an extensive interview process, as BBI is keen on ensuring they hire the best person for the job. Once I was selected, they checked all my references, did a background check, and finally offered me the job.

At BBI, Bruce is the CEO, chairman of the board, and still the best account manager in this business. Bruce is involved in every aspect of the business and he is everywhere. He constantly oversees what you do and often tells you to change something you've done because he disagrees. Bruce is a legend at the office. No one dares to contradict him.

Bruce is all about maximizing the returns, and he is very good at motivating people. He offers large bonuses based on portfolio profitability and promotes traders that do well. He doesn't seem to care how they make profit, as long as the numbers are good.

It was good work experience overall and I learned a lot. We had to attend many information sessions on regulations for trading as well as panel discussions on ethics in finance. Bruce never came to those, but all employees had to attend.


Required:
Comment on the control environment of BBI. Ensure that you support why a certain element of the control environment is positive or negative.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Auditing An International Approach

ISBN: 978-1259087462

7th edition

Authors: Wally J. Smieliauskas, Kathryn Bewley

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