The commission accused them of engaging in fraudulent accounting practices designed to inflate revenue, enabling the company to meet earnings forecasts and triggering the payment of ''substantial bonuses.''
Stephen Taub, CFO.com | US
June 13, 2005
With the ouster of the final hold overs from Take Two's board and senior management team, it's a good time to reflect on why none of the perpetrators of a blatant accounting fraud went to jail. Leving fines and penalties and barring the guilty parties from serving on boards and practicing before the SEC does not seem to be enough punishment. I'm also mystified as to how the shipment of hundreds of thousands of video games, at the end of an accounting period, went undetected or unchallenged by Take Two's outside auditor. It appears that the firm that audited the books, during the period of these frauds, should have been investigated and, if found culpable, disciplined in some manner. It's cases like this, among others, that reinforces the fact that Sarbanes-Oxley is just what the doctor ordered.
Posted by Larry CIA | June 12, 2007 12:02 pm© CFO Publishing Corporation 2009. All rights reserved.