QUESTION 1Apply the fraud triangle to Beam.

http://www.youtube.com/watch?v=Ds-BL8lzXuk

http://www.youtube.com/watch?v=gkyLIzq5nvo

http://www.youtube.com/watch?v=uiI9hLKRImk

QUESTION 1

Apply the fraud triangle to Beam.

Motivation – His initial motive was to keep his job under the pressure of Scrushy. Later on with the sucess of the company, He was motivated to keep both his reputation and compensation.

Opportunity – He was the CFO, so he had the knowledge and authority to make changes to the books. Since Scrushy was the mastermind, there was an opportunity for Beam to just follow orders while Scrushy pulls the strings.

Rationalization – Initially he rationalizes that the changes to the books were minor, and may be classified as aggressive accounting rather than a fraud, such as changes to bad debt. Although the accounting was not reflective of the current state of the company, he rationalizes that changes promised by Scrushy could drive the company to meet market expectations without cooking the books. Also because the orders were from Scrushy, there was a certain degree to rationalizing that he was only taking orders.

QUESTION 2

What verbal and nonverbal clues did you observe from the Beam talk that might indicate how trustful he is? Did you notice any evasive tactics? Any qualifiers?

Beam maintained eye contact, and overall spoke without broken or illogical speech. Both his speech and body language showed confidence and conviction.

I did not notice any evasive tactics.

When talking about Scrushy he would use wording like ‘you can’t imagine’. He also says that the SEC ‘didn’t’ really’ cut him a deal.

QUESTION 3

How did Scrushy pull Beam into the fraud?

Scrushy started by getting Beam to lie on his first day on the job about staying up all night the day before. This smaller ethical problem allowed Scrushy to see Beam’s reaction. Since Beam played along with the lie, Scrushy got his foot in the door. Scrushy would also motivate Beam with monetary gains, such as selling him shares at a nickel rather than a dollar for his company. Then Scrushy pressued Beam to makes changes to the books under the premises that Beams accounting was overly conservative rather than Scrushy being overly aggressive. Eventually when accounting discretion was not enough, Scrushy would convince Beam that he changed the books before, and should do anything necessary to change it again this time.

QUESTION 4

How would you compare the attitude of Scrushy and Beam.

Scrushy’s attitude seems to be that others accusing him of the fraud are in the wrong. He tries to play the victim and can be evasive of details to questions.

Beam on the other hand is the opposite. While he sees Scrushy as the mastermind, he admits his own failures to refuse taking part in the fraud, and seems open to details regarding his thoughts and actions to the situation.

QUESTION 5

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.