Lessons from Bearing Case Essay

1033 Words Apr 2nd, 2016 5 Pages
Significant case, most leading case in lack of corporate governance * Holding royal’s bank account (not merely responsibility toward the stakeholder but the society) * Oldest merchant bank * A single handed activity by Nick Leeson caused the bank bankrupted

Although Leeson is the one responsible for Barings’s bankrupt, however it’s not possible if other parties in the bank do their duties.
Leeson only took advantage since others in the organisation not carrying out their tasks and lack of knowledge.
Leeson used this to boost his ego.
If each of the people in organisation do their jobs without compromising or lacking in somewhere, Leeson wont have chance to take advantage.

Corporate Player
Staff
Internal monitor,
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* (split into internal and external auditors) * Describe roles of the internal and external auditors (links to case study, how could they mitigate the lose)

(General roles of them) * Internal: part of the organisation, their major role is to interpret accounts, standards; ensure that efficiency and operations internal control system of the company; provide advices to management when the f/s is not transparency (ensuring true and fair of F/S); should have communicate with the top management and external auditors; could act as whistleblower when they have strong ground to believe they are right; should ensure the book of account is complete

two roles for internal audit: * to provide an independent assurance service to the board, audit committee and management, focusing on reviewing the effectiveness of the governance, risk management and control processes that management has put into

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