YUH CORPORATION

An engagement team has been established to audit YUH Corporation. YUH Corporation engages in risking hedge fund investments in commodities: gold and silver. The supervisor has asked that you apply an old valuation method that you know is not correct. His explanation is that it worked in the past so it will work now.

You believe that the market has changed so much that valuation of the underlying asset cannot be based on past performance. The ability to price to market has been disqualified. The market is not normal. You propose a new, different method. Your model will lead to a higher valuation of the derivative investment. Your supervisor has told you, in no uncertain manner, that to disobey him will lead to future probation.

Do you believe that you should listen to your supervisor? Why, or why not?
What rules and regulations would guide the actions that you would take?
What actions would you take, and why?
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.

Grading Criteria

34%

Do you believe that you should listen to your supervisor? Why, or why not?

33%

What rules and regulations would guide the actions that you would take?

33%

What actions would you take, and why?

For assistance with your assignment, please use your text, Web resources, and all course materials.

Unit Materials

Unit 5 Course Materials