Read three articles above and answer the following questions:
- How did Lehman Brothers understate their liability?
- Why do you think EY was not held liable for the incident as much as investors wished (You can discuss it
in
relation to what we talked about in Chapter 4)?
- 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 the judge’s statement means?
Preferred language style Simple (Easy vocabulary, simple grammar constructions)
Sample Solution
