what life secret skill should evil rich teach child?

likedatosocan SG

As we know,

many big large super MNC companies say they are clean and honest.

during financial meltdown, their corrupt practices are exposed.

great examples are Enron, WorldCom and Rahmen Brothers.

I do not completely believe in audit, compliance standards and many things.

Seems like companies can show shareholders and investors monetary authorities how sound they are when in fact they are rotten to the core.

Is audit a means to an end?

As many greedy and evil and selfish rich people get away with many white collar crimes and only a small fraction of these get caught and exposed and collusion and cover-up is common place, i wonder what are the core skills and knowledge these people MUST teach their children in order for them to 'succeed' like them?

Lets not be dishonest. Greedy rich people commit many white collar crimes to be where they are and maintain their luxurios lifestyle using criminal means. So, knowing how important and how much they rely on being criminals to 'succeed' in business, do you not think that there are certain core skills and knowledge they must teach their child for them to take over their business to succeed like them also?

For corporate to remain profitable year after year, guess what some smart CEOs will resort to?

Ideal environment for crooks to thrive :

1. given absolute power

2. given no one to check on them

3. given people who can be bribed to check on them.

4. given people who never will question and voice up against tyranosaurs.

5. when there are countless grossrotladder Kangaroos hopping around for selfish gains at expense of the stakeholders.

Only Mortality can get rid of Tyranosaurs who terrorised all Stakeholders who are frogs in a well living in constant duress and fear but most importantly have become selfish and socially irresponsible stakeholders. Such a group of stakeholders will be smashed when attacked as they cannot unite and do not believe in ideals and can be bought by money. when invaded these will be the first to produce the 3rd leg.

the Bear SG

how to marry an ugly woman/man and fake a smile while running/ruining a country...

likedatosocan SG

how to marry an ugly woman/man and fake a smile while running/ruining a country...

1st lets play safe and assume we are talking about these characters come from a fiction movie.

That smile is not so much fake as looking like ronald mc donald's smile. observe and you shall see the resemblance.

NoobUnited SG

As we know,

many big large super MNC companies say they are clean and honest.

during financial meltdown, their corrupt practices are exposed.

great examples are Enron, WorldCom and Rahmen Brothers.

I do not completely believe in audit, compliance standards and many things.

Seems like companies can show shareholders and investors monetary authorities how sound they are when in fact they are rotten to the core.

Is audit a means to an end?

For corporate to remain profitable year after year, guess what some smart CEOs will resort to?

Ideal environment for crooks to thrive :

1. given absolute power

2. given no one to check on them

3. given people who can be bribed to check on them.

4. given people who never will question and voice up against tyranosaurs.

5. when there are countless grossrotladder Kangaroos hopping around for selfish gains at expense of the stakeholders.

Hmm seems like you like to talk about corporate governance alot

I suppose you should also have learnt that corporate governance is only a facilitator to help prevent corporate fraud. Audit and assurance provides transparency to the users of the financial statements, and self regulation does not work if the company itself does not believe in working in a ethical manner.

As long as greed exist in humans. This trend will only continue.

And btw, Lehman brothers did not collapse due to fraud ok? It's because their MTM deravatives value dropped

NoobUnited SG

*derivatives. opps sorry wrong spelling.

likedatosocan SG

Hmm seems like you like to talk about corporate governance alot

As long as greed exist in humans. This trend will only continue.

And btw, Lehman brothers did not collapse due to fraud ok? It's because their MTM deravatives value dropped

How you know there is no fraud?

Were the leaders honest?

If not honest, how confident to say that there is no fraud?

I am a layman but its also quite obvious that my concerns are valid.

Did they inform their investors about the potential problems?

Lets be blunt and honest, does audit prevent frauds? does sarbanes oxley etc prevent frauds? Are there loopholes? I think accounting is full of tricks.

You cannot deny that a rotten company can show investors and all auditors they are healthy. Can you please tell me what you think about this statement and then advise on the efficacy of Auditing , accounting and compliance rules in preventing Frauds ?

I am sure frauds cannot be prevented by current systems. why ?

NoobUnited SG

Okay I didn't say there were no fraud in Lehman brothers. Just that there are no facts currently to say that fraud exists within lehman brothers that led to their downfall. Although the CIA seems to be investigating

Enron created SPE's for the purpose of misleading their users. Worldcomm inflated its profits to mislead it's investors. Lehman brothers fell because their MTM derivatives fell, that by no means constitute to fraud.

Well in order to determine whether leaders were honest, that is why corporate governance came into place. Whether the leaders were honest or trying to hide the losses are again, not proven.

Let's assume that lehman brothers informed their investors of the problems, how many of them would sell their shares and speculate in short selling? Short selling is an ethical issue, not a fraud issue. And that is what happed to some banks like HBOS.

Auditing will to a certain extent prevent fraud. But it depends on the independence of the auditors.

Sabox and comply or explain will not prevent fraud totally. But a little bit of control is better than nothing right? That is why CG exist to provide more transparency to its stakeholders. Anyway this issue has been going on and on and it's not up to me to decide whether it works.

Well you mentioned accounting is full of tricks, maybe that's why IASB keeps revising it's accounting standards. (30+ changes in FRS next year). They are covering on all the loopholes faster than some companies are able to exploit them.

Yes a rotten company will not care about showing them being a healthy company when in fact they are not. Well u mentioned efficiency, but I suppose u want to mean effectiveness. Imagine a financial statement drawn up in a way the company would want, would it even be more correct and as the law and auditor terms it, 'true and fair'?

Yes fraud cannot be prevented totally by our curent systems, but that's because greed exist in humans as i keep emphasing in all my posts. That, is not the fault of the system but the company itself. And that is why CG auditor and accounting standards are constantly revising to prevent such things from happening again. But again fraud will repeat and new revisions will appear, and the cycle goes on and on...

Does that answer your question?

likedatosocan SG

Cannot means cannot. Cannot prevent all frauds means cannot prevent all frauds.

Not transparent means not transparent. Don't say 50% transparent. I might as well say 3.928% transparent also transparent? Do not give excuses to crooks.

if there is a loophole for crook CEOs to play with, under intense pressure they will use it. Either that or due to greed for bonus by inflating earnings, they can do that.

Look at Lakeman brudders. After given fat check of 700 billion by usa government, they the top execs spent on 400K USD luxury enjoyment.

Come on, we are not children and not naive like some unique people.

Its all about playing around the perimeter, pushing the envelop if not cooking the books. There are many ways to get things done. Remember, its PEOPLE who came up with rules. Its PEOPLE who can bypass systems of any kind.

why is it said that black can be said as white and vice versa?

the more rules, the more to play with.

Its all like a game. The best player gets away clean clean.

Its valuable to learn law and accounting.

most powerful couple is a lawyer and accountant couple.

reyes SG

Hmm seems like you like to talk about corporate governance alot

As long as greed exist in humans. This trend will only continue.

And btw, Lehman brothers did not collapse due to fraud ok? It's because their MTM deravatives value dropped

corporate goverance had to work hand in hand with govt regulation.

eg of such is every 2yrs changing of auditors firm. board of directors should not have members of relatives related to the firm.

if such action are taken, it would make fraud more difficult to happen.

lehman bros was over leverage. meaning investment bank has no control over how high it can go. if the fed/treasury has such control in place for investment bank, the world would not be in the current state of tormoil.

because greed happen, the more we need regulation to prevent it although i must admit it, never 100%.

likedatosocan SG

No Existing System can prevent GREED from destroying lives and satisfying selfish desires.

NoobUnited SG

Perhaps you have a better idea of what systems to implement to TOTALLY prevent greed?

From what i feel, the current system is doing a good job contrary to what you believe it to be. But anyway, everyone is entitled to their own opinion!

likedatosocan SG

Even if I do not have a solution, it is still a fact that the existing systems have loopholes for the many evil rich to explore and use to their benefit.

Just admit to this base on conscion.

That is why white can be said as black and vice versa.

Its how much money you have to hire talents to work for you to achieve your evil empire.

Money can do many things you know? learn something from TW !!!!

viva la Democracy!

(human) SG

A person who is greedy is also a person who's ignorant. Many people say money is the root of evil, i say ignorant is the real culprit of evil.