Chapter 6. The Board of Directors
“Where Was the Board?” “Pointing Fingers at the Board.” “Enron Board Asleep at the Wheel.” “What's Wrong with our Boards?” These are the types of headlines that appeared regularly in the nation's newspapers and business magazines following the business scandals. At first, it was the company officials allegedly guilty of various fraudulent acts who were being lambasted in our nation's headlines. Then, people naturally started wondering how these perpetrators were even able to get away with their acts in the first place. Why weren't the perpetrators, and their questionable acts and shifty maneuverings, better monitored? Of course, some of the monitoring responsibility belongs to a firm's auditors, which we discussed ...
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