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Can you think of any circumstances

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Reference no: EM13865610

In the accounting fraud at the cable company Adelphia, top management had established a cash management system that enabled the founder of Adelphia and former CEO and chair of the board of directors, John Riga’s, to dip into the fund for personal expenses whenever he wanted. The final approval for such expenditures rested with Timothy Riga’s, the son of John Riga’s and Adelphia CEO during the final years that fraud had occurred. What wrong with the founder of a company, its former CEO and board chair, utilizing corporate assets for personal reasons? Can you think of any circumstances where it would be permissible? That is, what would have to happen for this to be acceptable?

Reference no: EM13865610

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