CEOs and their egos

Michel Magnan an accountancy professor in the John Molson School of Business, explains that to understand fraud, one should look beyond governance and processes. The Financial Post reports that a revised copy of a report written by Magnan in 2009, “Like Moths Attracted to Flames: Managerial Hubris and Financial Reporting Fraud,” will be released next year. Earlier findings confirm that “when all else is considered, the size of the CEO’s ego is a more reliable indicator of financial fraud at a company than the makeup of the board of directors, the audit committee or the external auditors.” Coverage of this story also appears on Canada.com and Daily finance .