the bill a restriction to an auditor was added saying that accounting firms should rotate the in-charge partners on an auditing assignment every 5 years in order to prevent auditors from getting too cozy with their corporate clients.
III. The reasons of Enron Crisis
1. Window dressing settlement
Enron's nontransparent financial statements did not clearly detail its operations and finance
∙ GASC (The German Accounting Standards Committee)
- Task : Oversee GASB.
⇒ GASC is duly recognized by the Ministry of Justice asthe
German standard-setting authority.
∙ GASB (The German Accounting Standards Board)
- Task : Technical work or Issue the accounting standard.
⇒ GASB is made up of 7 independent experts with a background
in auditing, financial analysis,
credibility, expertise in process of Administration
2. Reinforcing the supervisory authority of Deposit Insurance Corporation.
Deposit Insurance Corporation?
-Government Organization Law, the supervision of FSC
-Insolvency situation, the Organization for raising capital
Examples: U.S. banking
Fed(Peacetime)-FDIC(Crisis)
Horizontal position(mutual control )
as farm operation capital, insurance and prioritized sales, also, disseminate advanced agricultural technology. Asof next step, they combine marketing activities among cooperatives and develop high-profile brands.
Second part oftheir work, banking and finance focuses on how to be an efficient and effective connection point between financial industry and agricultural industry. Thus, they facil
the build up and release of leverage among financial institutions, firms, and consumers. The Basel Committee is introducing a number of measures to make banks more resilient to such procyclical dynamics. These measures will help ensure that the banking sector serves as a shock absorber, instead of a transmitter of risk to thefinancial system and broader economy.
In addition to the leverage rat