-           AIG said that they have decided to restate financials from several previous years and the results of its internal audit show its 2004 results should be reduced by $2.7 billion, or 3.3 percent of its shareholders’ equity of $82.87 billion.

-           AIG also said that the internal review determined that AIG’s accounting for certain derivatives under the Financial Accounting Standards Board’s Statement of Financial Accounting Standards No. 133 — Accounting for Derivatives and Hedging Activities was incorrect and needs to be adjusted.

+ The company has carefully studied the use of finite reinsurance to polish financial results. In addition, the company also admitted the lack of risk transfer transactions and that may become misrepresentation. According to AIG, the restatement will correct errors in accounting for transactions. In certain cases, the transactions may also be related misrepresentations to for managing members, regulators and independent auditors of AIG, according to AIG’s statement.

+ AIG expects to receive unqualified audit opnion from PwC which related to the consolidated financial statements and the internal control assessment. However, AIG management has identified control deficiencies, including the ability of certain former members of senior management to break the internal controls in financial reporting in some cases and ineffective balance sheet reconciliation process.

-           In the early 2000, AIG was renowned for poor ethics and lack of internal controls. Company accused of reinsurance transactions with a number of companies, which was created and designed to inflate loss reserves up to $ 500 million. The aim is to deceive investors and the public.

-           The fines and investigations continued to pile up on AIG through to 2007 when regulators found the firm guilty for misrepresenting data and federally responsible for fraudulent accounting practices. This is when Martin Sullivan replaced then CEO Hank Greenberg. Greenberg led to resulted in $1.8 billion in fines for AIG.

-           Sullivan realized that AIG was in serious trouble and continued to make risky investermennt  in order to rise short-term growth. The company promised to buyers of swaps if the debt securities defaulted, the company will pay the losses. The majority of the securities referred to the CDO, securities backed by such mortgage bonds.

-           A close look at AIG's risk-management operations, demonstrates that the firm should have been aware of these risks. But AIG didn't anticipate how market forces and contract terms not weighed by the models would turn the swaps, over the short term, into huge financial liabilities. AIG didn't assign Yale professor Gary Gorton, who designed a computer model to gauge risk to assess those threats, and his models didn't consider them. Those so-called comfortable risks have cost AIG tens of billions of dollars and pushed the federal government to rescue the company in late 2008 when it announced a loss of $61.7 billion dollars in the fourth quarter of 2008.

By focusing on unrealistic financial gains, firms like AIG create an ideological bridge between the values of the firm's executives and the firm's stakeholders. AIG is a current example of how a set of well-articulated corporate values is a necessary blueprint for running a business.