FTX Lesson No. 1: Don't Fall Asleep in Accounting Class
Sam Bankman-Fried is a reminder that under the heading, "Boring But Important," basic bookkeeping tops the list.
Getting used to testifying.
Photographer: Saul Loeb/AFP via Getty Images
Investigations are underway into the stunning collapse of FTX and its sister company, Alameda Research. FTX-related case studies will be taught in business schools for years to come. Out of the tangled mess, one lesson already has become clear: The lack of a serious accounting system or even basic internal controls contributed to the company's downfall.
As professors of accounting, it's a continual challenge convincing students that our courses are important when they're tempted by sexier-sounding classes with titles that include words like “innovation,” “artificial intelligence” or “fintech.” “Introduction to Financial Accounting” doesn't pique the interest of the typical 20-year-old.