American International Group, Inc

The third case: American international group, Inc

key agents: Cornelius Vander Starr: At first, he sets up his own insurance agency. His foundation ranks among the world's largest philanthropic organization before he died.

Maurice " Hank" Greenberg: new CEO ( AIG was one of the ten largest companies in the U.S and among 20 largest companies worldwide.

Michael Joseph: A partner in the national office of Ernst& Young.

The fourth case: Waverly Holland

key agents: Waverly Holland( staff auditor ), Robert Chope(Attorney)

Clayton Morris( An audit partner with Waverly's former employer

T.J. Gillette( in-house attorney)

Overview of the two cases

In the first case, Cornelius Vander Starr sets up his own insurance agency, American Asiatic underwriters. As he neared retirement, he let Greenberg replace his position. Greenberg developed other financial services and creates customized " Special Purpose entities" or SPEs , which is a limited partnership that two or more companies join together to form. To help develop and market the new service , Michael Joseph, a partner in the national office of Ernst & Young ( E &Y) caused E&Y to issue reports pursuant to statement on Auditing standards No.50.PNC showed interest in purchasing AIG's SPE service. PNC transferred nearly 100 million of nonperforming loans to an SPE that was created by AIG. When Federal reserve officials reviewed the transactions and it also triggered investigation by SEC, and issued that it is not in compliance with GAAP. At last, this case cause both loss to PNC as well as Greenberg and Joseph.

In the second case, Waverly Edward Holland completed a degree in accounting and accepted a audit position afterwards for three years and then come to school again to finish his MBA degree. Unfortunately , one night he got one call from an attorney named Robert Chope. From what Chope said, there are some mistakes of the financial statement against Padova & Vicenza, which is the...