Discussion Post
Read the following three articles carefully and address the questions below.
Articles:
o Repo 105: Lehman's 'Accounting Gimmick' Explained (NPR)
o Lehman Case Hints at Need to Stiffen Audit Rules (NYTimes)
o Ernst &Young Agrees to Pay a9 Million in Lehman Settlement (WSJ)
Address two questions below (Your initial post should be approximately 200-300 words):
• Why do you think was EY not held liable for the incident as much as investors wished?
• In the NYTimes article above, the judge said "the fact that Lehman's accounting for the Repo 105 transactions technically complied with the rule does not mean that Lehman's financial statements complied with GAAP." What do you think it means?
The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.