Review Case 5-9 Fannie Mae: The Government’s Enron
Respond to the following:
Situate yourself as an experienced CPA and leader in your assigned Accounting firm. First determine 3 major elements of what went wrong. Then, applying your Assigned Accounting firm’s values and other professional and expert publications, describe how these could have been prevented or remedied.
Fannie Mae’s corporate governance system failed to identify excessive risk-taking. Describe those risks and the mechanisms that should have been used by Fannie Mae and KPMG to enhance risk assessment according to authoritative expert resources.
Analytical Requirements: Introduce the situation. Introduce and define or situate on the theme from the textbook (cite and reference). Step through the elements using facts, logical reasoning, and appropriate responses as a CPA and member of the AICPA. Conclude on the theme.
Scope: Your original response should be 350-500 words in length and meet the APA and writing standards as shown in the CWE for Masters Level II. Follow up responses should be 150 words in length (graded under participation).
Professional references (no third party): Required: Content from the textbook, AICPA Code of Professional Conduct, a professional Accountancy journal from the United States of America, Accounting technical guidance for any factual assertions. Recommended: Peer reviewed ethical websites (not professor in courses websites), Journal of Business Ethics, and related literature.
For assigned Accounting firm questions, specifically used and linked resources from the firm’s website.
Post in a new thread your response in the discussion area by Saturday (recommended). Not as a file: post directly. Post the file to the assignment tab. Follow up throughout the week.