Post 1: Initial Post

Instructions

This posting should be a minimum of one short paragraph and a maximum of two paragraphs. Word totals for this post should be in the 100200-word range. Whether you agree or disagree, explain why with supporting evidence and concepts from the readings or a related experience. Include a reference, link, or citation when appropriate.

Preparation

Think of a recent business fraud or scandal youve heard about in the news, or choose one that has been mentioned in your reading. For example, you might consider one of the following:

• The Volkswagen emissions falsification scandal
• The Wells Fargo fake account scandal
• The subprime mortgage crisis

Research the scandal, paying close attention to how it was possible for whatever went wrong to happen.

For Discussion

Specify the scandal you chose, and be sure to cite any sources where you conducted your research. Then respond to ALL of the following questions in your initial post:

1. Were there controls in place that should have prevented the scandal or fraud from happening? Explain what types of controls existed using the terminology in your reading (feedback, proactive, concurrent, strategic, operational, tactical, top-down, objective, normative, financial, nonfinancial).
2. If so, why do you think the controls were ineffective? If not, why do you think the business didnt have sufficient controls in place?
3. What was managements role in the failure of the controls?
4. Did the business implement new controls in response to the scandal? If so, do you think theyll be effective?