Accounting Fraud

Explain in detail Jennings seven signs of ethical collapse are found in the Lehman Brothers fraud. Select at least 4 signs and give each example.

Jennings 7 signs of ethical collapse:

1. Pressure to make the numbers

2. Fear and silence

3. Larger than life leader

4. Weak board of directors

5. Conflicts stock option, loans, business, etc.

6. Innovation like no other (too good to be true)

7. Goodness in some areas atones for evil in other areas