Accountants who go to JAIL

Рет қаралды 9,915

2 жыл бұрын

WorldCom Controller didn’t stand up to his CFO when asked to book a transaction he disagreed with. In Contrast, Swisher’s Controller stood up to what’s right and got fired for it. He is my hero for standing up to the truth.
I’ve always been curious about human behavior/psychology and how it impacts our vulnerability to committing acts of fraud and deception. In this video, I breakdown the events that lead to the collapse of WorldCom compared to Swisher.
Interview with David Myers video (credit for clips used in this video):
• Worldcom
Article about Swisher’s Fraud Case:
www.sec.gov/litigation/litrel...
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Пікірлер: 44

@lastnamefirst650 2 жыл бұрын

Thank you for this! I’m a new accounting student and was worried I’d be gullible to stuff like that

@ryderwashington4199 2 жыл бұрын

You'd think so but trust me you won't be, once you get in the real world and look at the general ledger detail of every account and its history. You'll easily see when things are right or wrong, ultimately it's your decision because you really have the control of how to account for things. You could purposely commit fraud very easily, especially if it isn't an audit. But like he said, everyone puts trust in you so you have to hold their trust dearly.

@lastnamefirst650 2 жыл бұрын

@@ryderwashington4199 thank you for saying that, that helps a lot 👍👍

@ryderwashington4199 2 жыл бұрын

@@lastnamefirst650 It's incredibly weird that no accountant in the team found out what they were doing, especially since they violated the matching principle that's an easy, easy accounting error that can be found... but I guess in a huge company like that no single accountant has access to the full GL from every segment of the company. Like for me I manage everything, I oversee every single account in the B/S and I/S so I know if something is fishy like that. On top of that auditors press down on you if you don't have backup documentation, so a huge company like this to just bypass an explanation for a material amount of money from the auditors was the biggest red flag. Cus im telling you auditors will find the weirdest thing on your books like bruh...

@lastnamefirst650 2 жыл бұрын

@@ryderwashington4199 I feel it’s what you said - huge company, management prevents lower level accounting staff from reviewing the original journal entry maybe? Maybe they just see the entry’s value on the GL?

@ryderwashington4199 2 жыл бұрын

@@lastnamefirst650 And the fact that big CPA firms care more about profit than integrity. No wonder it's Big 4 and not Big 5 anymore. Cause i think everyone knew the auditing firm was in on it, cause ultimately the auditors prepare the statements and issue it on behalf of the company. Their opinion matters the most.

@tranquil5608 2 жыл бұрын

I didn't know about these cases and commend you for bringing these two cases to your channel. The hero in the end is the lesson here. Dont succumb to pressure to commit fraud. Dont post without supporting documents

@MyFinancialFocus 2 жыл бұрын

Super interesting! I’m an accounting student about to graduate and I’m thinking about going for my CMA certification. These videos definitely opened my eyes to how interesting the practice of accounting can be compared to the boring reputation it gets lol.

@TheFinancialController 2 жыл бұрын

Not a boring day!

@af7318 2 жыл бұрын

Please keep sharing these kinds of videos. Very interesting as a student studying accounting.

@joshuabracke5775 2 жыл бұрын

As an accountant it fascinates me which expenses should be capitalized and which expensed. Fraud cases like these are so important to study and understand. It helps us to avoid damage to the profession and to become more honest and objective accountants. One thing that was a huge standout to me was having a JE with no backup. That's a big red flag!

@ltran6535 2 жыл бұрын

Different tax treatments for OPEX and CAPEXP in terms of deductibility of business expenses.

@gbrcllc 2 жыл бұрын

Ethical over profession respect > jail. Controller can know as much as CFO just don't have the title. This is an excellent video. Thank you.

@pavansyd 2 жыл бұрын

Thx for sharing your knowledge. I’ll keep in mind 😀

@FundamentalEconomics 2 жыл бұрын

You are my Financial Hero Sir, lots of Respect.

@LadyBathory1 2 жыл бұрын

I really enjoyed this video! It clarified a lot.

@timbit827 2 жыл бұрын

This was great. Good to keep in mind when i start working in accounting

@TheFinancialController 2 жыл бұрын

Thanks for watching

@stunnerkay9556 2 жыл бұрын

I believe that objectivity is a state of mind. Accountants have a duty to protect the health of companies whose finances they manage. My question is why is it that most corporate frauds are committed by higher level managers? Its ironical seeing that there are tight knit controls over operational and financial transactions but ultimately the end reviewers (the controllers and CFOs) continue to defy ethics and have a go with fraud. I can only advise to continue to relate to integrity and conduct business in a clean slate.

@TheFinancialController 2 жыл бұрын

Agree

@boleslawkrzywousty7945 2 жыл бұрын

Very interesting - thanks.

@blackamericanlesbianprofes4357 2 жыл бұрын

Thank you for sharing the interview link. I would like to see what is said fully. I know that E&Y didn't adhere to their profession with Wirecard, I am learning while writing a report on this for one of MSc Forensic Accounting classes. Date Stamp: 18may22

@lucatintor4896 2 жыл бұрын

Swisher’s Controller showed a pair of balls, well done. Glad you bring those videos about the important aspects of the CPA job requires.

@TheFinancialController 2 жыл бұрын

Yes!!

@Soulenergy31 2 жыл бұрын

This video is gold!,, 12:18 The 5 ethical accounting standards

@TheFinancialController 2 жыл бұрын

Thanks man

@stunnerkay9556 2 жыл бұрын

You are a genius

@mohammednadir2225 2 жыл бұрын

Sir what about the course cma usa. Is it worth to get job in middle east Gcc

@FundamentalEconomics 2 жыл бұрын

My dear beloved Sir, There is no video on Cash Flow Statement. Please make a mind-blowing one.

@TheFinancialController 2 жыл бұрын

@FTA-0 2 жыл бұрын

I think he misunderstood what trust is, and I wonder if trust exists in the financial world without proof!

@TheLioneldiaz 2 жыл бұрын

In latin America this doesn´t happen. For instance the Central Bank of Argentina is suppossed to be audited by the General Audit of the Congress. But guess what. The controller function is outsourced to a private firm to do the job. Obviously who is in charge of the selection of the firm that will do the job and do the internal procedures of control? jaja

@Lk08795 2 жыл бұрын

Who can the controller go to for legal gl entries advice?

@tomstanely 2 жыл бұрын

What if you don't know what you don't know? What if you think you know, but you actually dont know?

@mohamedeassa 2 жыл бұрын

Interesting

@terrencemayson4551 2 жыл бұрын

What jobs would you qualify for with an associate degree in accounting?

@TheFinancialController 2 жыл бұрын

Jobs in accounts payable or receivable mostly

@oye4511 Ай бұрын

👍

@lamiaaitbouskri278 2 жыл бұрын

I dont understand. U 200k of views and only 58k subscribers. Isn't it crazy? Ask people to subscribe if they are interested in.your videos.

@lady.p. 2 жыл бұрын

😂🤣😂🤣

@AH-nt6ib 2 жыл бұрын

R u really 6'6🤣

@dohalimilqarasdeldemenanci8483 2 жыл бұрын

Highly doubt it lol, you see him sit next to his wife in his previous video and they seem to be around the same. Then again, maybe his wife +6'2 feet......you never know.

@hayleyshawn9161 Жыл бұрын

I work for a corporation where I’m pretty sure they are committing accounting fraud. Past SEC filings and lawsuit confirms this but I believe they are up to new tricks. I’m not in the cash department but I hear/see/and study things. Would you mind if I message you on Facebook a little bit about the situation maybe you can help me figure out what to look for? This is directly affecting my income as an IC

@alexramos1502 4 ай бұрын

If you feel something is off probably because it is true. I would polish up resume and jump ship, if something goes bad and you are there while it is happening there will be a stink about you from other corps.