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Who do you think is to blame for all the fraud that has, and continues to occur in Revenue Recognition?

1.) Who do you think is to blame for all the fraud that has, and continues to occur in Revenue Recognition? Why do you believe that despite all the fraud that has been uncovered, executives arrested and jailed, and new laws, that nearly every week a new case of revenue fraud turns up in the news? Can it ever be prevented?

2.) In the article in this week’s weblinks, entitled “PCAOB Finds Deficiencies Galore”, and inspection of the 8 largest audit firm’s practices revealed continuing problems in the area of revenue recognition. Why do believe this is the case? Can they all be getting it wrong? What does this mean for the consistency and comparability of financial statements prepared under US GAAP?

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