The pop science magazine Psychology Today has a nice if shortish piece out on what may be gleaned -- by auditors -- as risk factors for Vyera / Theranos style frauds, at the CEO seat.
It is worth reading, if for nothing else than its well-placed praise for Amanda Seyfried in "The Dropout".
Here's the bit I found most interesting (after listing the factors to watch out for in a potential fraudster CEO):
. . .It’s clear that the public is fascinated by the Theranos debacle and with Holmes, specifically. And maybe with good reason. One main conclusion of the study is that auditors looking for fraud should expand their focus beyond economic incentives to include psychological risk factors exhibited by the people running the companies. Understanding why Holmes did what she did and learning to spot people like her in advance is one way to help prevent another Theranos from happening. . . .
In candor, I must admit that a fair bit of the way the compensation of '34 Act public company auditors works in the SEC rules. . . seems almost specifically designed to incentivize audit partners to "look the other way", when an aberrant CEO is promoted. . . or worse, founds. . . what becomes. . . a public company. [Think Elon Musk here, as well.]
Onward, into the cool sunshine -- with my youngest grown son now home for ten wonderful, adventure filled days! Woot! [Blog postings may be spotty, at best. . . .]
नमस्ते
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