Issues for class discussion:
Accounting fraud
- Identify the methods employed by companies to manipulate their
financial statements to their advantage.
- How did PICNIC manipulate its financail statements?
- Can accounting fraud be prevented?
Corporate governance
- What are benefits and costs of companies and capital market in
promoting good corporate governance?
- Who should be responsible for corporate governance and how ?
- What are warning signals that a company may not observe the best
practice in corporate governance?
- Did PICNIC follow good corporate governance?
- Discuss roles of SEC and Court in PICNIC case.