Business Case Studies, Finance, Accounting and Control Case Study, AIG,he Accounting Scandal Unfurls

print page
Tell A Friend

Case Categories

Finance, Accounting and Control Case Study

Case Title:

AIG: The Accounting Scandal Unfurls

Publication Year : 2005

Authors: Shruti Khatri

Industry: Insurance and Financial services


Case Code: FAC0037P

Teaching Note: Not Available

Structured Assignment: Not Available

Buy This Case Study

In February 2005, AIG, one of world’s leading insurance and financial services organization was accused of improper accounting and manipulation of financial statements. The case discusses the accounting frauds committed by AIG, and provides an insight into the ways by which AIG manipulated its financial statements. The role of the company’s top management in the scandal has also been discussed. Finally, the case explores the initiatives being taken by the company to change its management structure, restate its financial statements and restore investor confidence.

Pedagogical Objectives:

  • To discuss the accounting scandal at AIG in 2005 and focus on issues of ‘transparency in disclosure of accounts’, ‘ethical conduct’; ‘ethical audit’ and ‘ethics in corporate governance’
  • To discuss the 10/10 rule of risk transfer, side letters and their usage, the involvement of top management in the scandal and the effects of the scandal on the company’s market capitalisation and image.

Keywords : AIG, Finance Case Study, Accounting scandal, Financial services, Manipulation of financial statements, Involvement of top management, Accounting fraud, Insurance sector, Finite insurance, Reinsurance/reinsurers, Maurice Greenberg

Recently Bought Case Studies

    Recently Bought Case Studies

    Executive Interviews

  • David ConklinDavid Conklin

    David Conklin, is a professor at the Richard Ivey School of Business
    Speaks on Government and Business
  • Lord Meghnad DesaiLord Meghnad Desai

    Lord Meghnad Desai, is an Indian-born British economist and Labor politician
    Speaks on Government and Business
  • Vijay GovindarajanVijay Govindarajan

    Vijay Govindarajan, is widely regarded as one of the world’s leading experts on strategy and innovation
    Speaks on Reverse Innovation
  • View All Executive Interviews»

Contact us: IBS Case Development Centre (IBSCDC), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501203, Telangana, INDIA.
Mob: +91- 9640901313,

©2020-2025 IBS Case Development Centre. All rights reserved. | Careers | Privacy Policy | Terms of Use | Disclosure | Site Map xml sitemap