close solutoin list

On October 2, 2002, a clerk at Bear Stearns had erroneously entered an order to sell nearly $4 billion worth of securities. The trader had sent an order to sell $4 million worth. Only $622 million of the orders were executed, and the remainder of the orders was canceled prior to execution. Reports stated that it was a human error, not a computer error, and that it was the fault of the clerk, not the trader. What is your opinion of these reports? What controls could have prevented this error?

BuyFind

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
Publisher: Cengage Learning
ISBN: 9781337552127
BuyFind

Accounting Information Systems

11th Edition
Ulric J. Gelinas + 3 others
Publisher: Cengage Learning
ISBN: 9781337552127

Solutions

Chapter
Section
Chapter 9, Problem 9DQ
Textbook Problem

On October 2, 2002, a clerk at Bear Stearns had erroneously entered an order to sell nearly $4 billion worth of securities. The trader had sent an order to sell $4 million worth. Only $622 million of the orders were executed, and the remainder of the orders was canceled prior to execution. Reports stated that it was a human error, not a computer error, and that it was the fault of the clerk, not the trader. What is your opinion of these reports? What controls could have prevented this error?

Expert Solution

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

See Solution

*Response times vary by subject and question complexity. Median response time is 34 minutes and may be longer for new subjects.

Chapter 9 Solutions

Accounting Information Systems
Show all chapter solutions

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Outline the historical evolution of business social responsibility.

Foundations of Business (MindTap Course List)

What does the invisible hand of the marketplace do?

Brief Principles of Macroeconomics (MindTap Course List)

PRO FORMA INCOME STATEMENT At the end of last year, Roberts Inc. reported the following income statement (in mi...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)