My problem with post mortem or investigations is that it is late of a reaction, EA image has been tarnished and the total cost of a scandal could not be computed. I still believe that installing a dedicated governance team reviewing all of the major risks where inflows and outflows of money is involved is still a better approach.
Requiring and reviewing financial statements audited by a big 4 firm is still the best approach if a certain charity/Non profit org is receiving a donation—assuring that the donor is doing its best to comply with international or American accounting standards. Audited FS submissions also solves the tax haven comment you shared though I believe legitimate companies still do have accounting standards and audit standards especially as they still need to engage in the business world. It was described that SBF has a backdoor mechanism in their books that evaded executives, accountants and auditors—if this is true, the tax haven issue is not the culprit. Btw, I live in the nearby Cayman Islands and we still do accounting here following International Accounting Standards.
I have no problems with strong inter institutional cooperation but it still needs some kind of system to work with like who plays the lead and the follower in certain scenarios
Great points here.
My problem with post mortem or investigations is that it is late of a reaction, EA image has been tarnished and the total cost of a scandal could not be computed. I still believe that installing a dedicated governance team reviewing all of the major risks where inflows and outflows of money is involved is still a better approach.
Requiring and reviewing financial statements audited by a big 4 firm is still the best approach if a certain charity/Non profit org is receiving a donation—assuring that the donor is doing its best to comply with international or American accounting standards. Audited FS submissions also solves the tax haven comment you shared though I believe legitimate companies still do have accounting standards and audit standards especially as they still need to engage in the business world. It was described that SBF has a backdoor mechanism in their books that evaded executives, accountants and auditors—if this is true, the tax haven issue is not the culprit. Btw, I live in the nearby Cayman Islands and we still do accounting here following International Accounting Standards.
I have no problems with strong inter institutional cooperation but it still needs some kind of system to work with like who plays the lead and the follower in certain scenarios