In his analysis of the Dell fraud for Forbes, Edward Hess comments: Too often, the markets
maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it
apparently did at Dell. That behavior produces non-authentic earnings that obscure what is really
happening in business. Short-termism can result in a range of corporate and financial games that
may enrich management at the expense of market integrity and efficient investor capital
allocation.4 Comment on Hesss statement from two perspectives: earnings management and
financial analysts earnings projections.
Explain the difference between financial statement fraud and disclosure fraud. How did Dell use
each one to produce materially misstated financial results?
Do you agree with the court opinion that PwC did not act with fraudulent intent, therefore, not
holding it legally liable? How can fraudulent intent be established in a case like Dell?.
In his analysis of the Dell fraud for Forbes Edward Hess co.pdf
1. In his analysis of the Dell fraud for Forbes, Edward Hess comments: Too often, the markets
maniacal focus on creating ever-increasing quarterly earnings drives bad corporate behavior, as it
apparently did at Dell. That behavior produces non-authentic earnings that obscure what is really
happening in business. Short-termism can result in a range of corporate and financial games that
may enrich management at the expense of market integrity and efficient investor capital
allocation.4 Comment on Hesss statement from two perspectives: earnings management and
financial analysts earnings projections.
Explain the difference between financial statement fraud and disclosure fraud. How did Dell use
each one to produce materially misstated financial results?
Do you agree with the court opinion that PwC did not act with fraudulent intent, therefore, not
holding it legally liable? How can fraudulent intent be established in a case like Dell?
