• org design should support overall strategy
• if rigid and structured, type of strategy is limited
• What was the driver of the fraud? what caused it?
◦ how do you control a senior manager who thinks he has the best
interests of the firm, but doesn't
◦ was it greed?
◦ not only do your ends have to be morel but also your means
◦ you can't trust the inner circle to steer the company in a proper direction
so you need PROXIES
◦ ideally, managers should catch the fraud, then BOD, then shareholders,
then customers, then credit agencies, then government
◦ whole line is incompetent, what do you do?
• How did the audors miss?
▪ not going above and beyond IFRS standards
▪ auditors are supposed to cross check
▪ whats my job
▪ meet the standar