Rogue Trader

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the essay should identify and justify your selection of 2 components of the COSO framework that were most violated in the rogue trader movie In Rogue Trader movie Nick Leeson makes unauthorized trades and covers up losses which are sufficient to bankrupt Barings bank. While management thinks that Nick brings large profits to the bank, Nick hides losses under fake error account which people think belongs to a customer. Leeson is able to cover up his losses because bank's management allows him to run both the trading floor and the back office facilities. Nick is afraid of management finding out about his first loss and does things such as finding a new client, requesting funding and so on, to hide his losses and show profits. However,…show more content…
Since Nick Leeson was able to hide the reality of his actions for a while, an assumption can be made that fraudulent financial reporting wasn’t controlled at any level. When Mui Mui was conducting an audit she had noticed that 7.78 million were not on any Receivables. Leeson was able to forge the confirmation and the side from Bank Statement to make it look like this amount was indeed received. Those forged documents bought him some more time, which clearly shows that there was no control at any level of the financial documents accompanying transactions. Also, the funding Nick requested kept coming even after company realized that Singapore law had funding restrictions. Another huge component violation demonstrated in Rogue Trader is risk assessment. Nick Leeson was running the trading floor as well as managing the back office. There was no check and balances. The risk of Leeson manipulating the books wasn't taken into consideration. When auditor Ash Lewis came in and observed it, she took no further action, neither did the management. Other auditors came only because of government regulations. Another example is when Lesson's boss took no action after receiving a letter from SIMEX regarding the suspicious sub account 88888. He gave the letter to Leeson and asked him to present a report regarding that account instead of

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