Wednesday, August 14, 2002

Economist: Swearing by the Numbers

This article by Economist talks of Corporate cleaning in the aftermaths of Enron, WorldCom bankruptcies:

"...there have been a raft of measures to clean-up corporate America. One of the most high-profile of these is a new requirement that chief executives and chief financial officers of America’s biggest companies confirm, with their own signatures, that their financial report “fairly presents” the condition of their companies. Most will have to do this by Wednesday, August 14th. Few are opposed to this measure, but sceptics wonder whether it will have much effect...."

I wonder, how many CEO's, CFO's will actually end up in prison. The same article presents instances where CEO's and CFO's have asked their Juniors to sign off on such a declaration. Now what would you call that. Isn't that fraud ?

No comments: