12:25 V } 79%d . . QUESTION 1 (COMPULSORY) In recent times, the central Bank of Ghulisembarked on re-organization of the financial sector that among others has resulted in the increase in the minimum capital requirement to 100million Ghama coxlis. This csercise led to the revucation of licenses from some universal banks. This was followed by a full report by the Bank of Ghana (herein after called that DOG report") regarding their basis for the revocation of licenses. A curful review of this report reveals a number of financial reporting and curpurate governance lapes. You are required to compare your understanding of the salient elements of that HOG report to the Emon Case (se cacorps below) and swer the questions that follow Excerpts from the Earon Corporate Scandal "Fintan ve one of the world's leading electricity, staral gas pulp preer and conviction iem bused in Texas. Its claimed revenue was estimated to be SLOlbellowever, at the end of the 2001 it was revealed that its financial conuition was susil bosily by systematic and creative accounting fraud. Tour thousand of its staff lost their job due to its bankruptcy. The scandal cost the dissolution of Arthur Anderson, a Big Five accounting firm. Many of Fon's financials and assets were inflated, fraudulent and son existent. The firm used sophisticated financial transactions in addition to losses and debt got into offshore fins al wrted in the financial parts. Later investigation revealed that, the Executives knew about the offshore account. hiding losses from the firm. Cro. Andrew Castor Jed the team who , . Created the offshore books and manipulated the deals to suit himself and family The scandal discovery ked to a fall in Enroe's sharu price on the stock market Employees of the . fion had earlier expressed concerns about this for some time. Sherton Watkins, Vice President, mes the then CEO reported dubro desls of Vince & Eline and Arthur Anders SEC inquiry into the maner reveals more worrying concerns retaring to Alvar Anderson which led to its indicament. Other Lims were also identified in the sandals By mid-2006, 16 of Emre's top executive pladed guilty Weacted and in the process of heinget Required Express your opinion of the statement: "Checks and balances are critical senants oi corporate governance (2 marks) b. Discuss twu (2)ways by which instituted corporate governance structures can address the aperty oblem (4 marks) c. Lising four (41 strong points demonstrate how the financial reporting and corporate Cementioned that i report compare against that of the ENRON case. 8 marks) Identify and explain my four (4) mechanismis in the carpal governance chain should could have prevented lapses, reported in both the ENRON case and that DOG (6 marks) Total = 20 marks TIL o 12:25 V } 79%d . . QUESTION 1 (COMPULSORY) In recent times, the central Bank of Ghulisembarked on re-organization of the financial sector that among others has resulted in the increase in the minimum capital requirement to 100million Ghama coxlis. This csercise led to the revucation of licenses from some universal banks. This was followed by a full report by the Bank of Ghana (herein after called that DOG report") regarding their basis for the revocation of licenses. A curful review of this report reveals a number of financial reporting and curpurate governance lapes. You are required to compare your understanding of the salient elements of that HOG report to the Emon Case (se cacorps below) and swer the questions that follow Excerpts from the Earon Corporate Scandal "Fintan ve one of the world's leading electricity, staral gas pulp preer and conviction iem bused in Texas. Its claimed revenue was estimated to be SLOlbellowever, at the end of the 2001 it was revealed that its financial conuition was susil bosily by systematic and creative accounting fraud. Tour thousand of its staff lost their job due to its bankruptcy. The scandal cost the dissolution of Arthur Anderson, a Big Five accounting firm. Many of Fon's financials and assets were inflated, fraudulent and son existent. The firm used sophisticated financial transactions in addition to losses and debt got into offshore fins al wrted in the financial parts. Later investigation revealed that, the Executives knew about the offshore account. hiding losses from the firm. Cro. Andrew Castor Jed the team who , . Created the offshore books and manipulated the deals to suit himself and family The scandal discovery ked to a fall in Enroe's sharu price on the stock market Employees of the . fion had earlier expressed concerns about this for some time. Sherton Watkins, Vice President, mes the then CEO reported dubro desls of Vince & Eline and Arthur Anders SEC inquiry into the maner reveals more worrying concerns retaring to Alvar Anderson which led to its indicament. Other Lims were also identified in the sandals By mid-2006, 16 of Emre's top executive pladed guilty Weacted and in the process of heinget Required Express your opinion of the statement: "Checks and balances are critical senants oi corporate governance (2 marks) b. Discuss twu (2)ways by which instituted corporate governance structures can address the aperty oblem (4 marks) c. Lising four (41 strong points demonstrate how the financial reporting and corporate Cementioned that i report compare against that of the ENRON case. 8 marks) Identify and explain my four (4) mechanismis in the carpal governance chain should could have prevented lapses, reported in both the ENRON case and that DOG (6 marks) Total = 20 marks TIL o