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To: Oeconomicus who wrote (10965)	6/27/2002 3:34:48 PM
From: BWAC	Read Replies (1) \| Respond to of 11568

I concur. And your process is exactly right. Now how do we find out if Sullivan's rationale was absurd (indicating fraud)or just misapplied (indicating poor judgment). I haven't seen enough detailed info yet to decide. Have you? ----------------------------------------------- <Whether Sullivan is guilty of deceit (Fraud) or just very bad judgement, the process worked as it should. That's why large companies have internal auditors reporting to the board to begin with - it's all checks and balances, if you'll forgive the pun. Regards, Bob PS: None of this helps us, of course, unless the banks feel as I do that their chances of repayment are better keeping the company out of bankruptcy. We'll see... eventually. PPS: As for Andersen, I agree that there is no excuse for them not catching this. Actually, I doubt they missed it at all, but rather someone high enough at Andersen to make such a call agreed with Sullivan (however much they had to contort logic and the rules to rationalize it) and they just went along. >

To: Oeconomicus who wrote (10965)	6/27/2002 3:47:36 PM
From: HH	Respond to of 11568

Excellent points re: CFO and Accountants. I think the truth to all of this that happened was the stair step phenom. There are many participants ( some witting and some unwitting) who were pushed to squeeze that extra nickel to the bottom line. When they did , they all cheered and everybody was a winner. Next go round, they got caught up in doing a little more. The line gradually got pushed and nudged, greyer and greyer. Some companies pushed harder and some accountants (AA) pulled. The slippery slope of ethical behavior. HH