Can legislation restore public trust? : an analysis of the Sarbanes-Oxley Act 2002
Name
53982826-MIT.pdf
Description
Full printable version
Size
2.35 MB
Format
Adobe PDF
Checksum (MD5)
f16139e1508b5aef868aaab99756c345
Author(s)
Chioffi, Vanessa A. (Vanessa Anne), 1968-
Advisor(s)
D. Eleanor Westney.
Alternative Title
Sarbanes-Oxley Act of 2002
Date Issued
2003
Publisher
Massachusetts Institute of Technology
Abstract
Financial statement requirements, the Board of Directors, and the audit committee all represent methods of controlling the business decision of management in an effort to protect the investments of investors and creditors. At times, management and auditors have incentives to misrepresent the financial statements, or to exploit the accounting and reporting model, or the attest and assurance standards even though there are compelling moral and economic reasons to act ethically. Despite the high levels of legal liability, potential public embarrassment, and possible bankruptcy, some management and auditors fail to act ethically or to follow even basic professional standards. The consequences of even just a few individuals' misdeeds can have a dramatic impact on investors' confidence in financial reporting and the capital markets. This thesis probes the question of what role can legislation play in restoring public trust when it appears that all institutions that provide protection against large-scale fraud have failed to varying degrees.
Description
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2003.
Includes bibliographical references (leaves 61-62).
Subjects
Sloan School of Management.
MIT Department
Sloan School of Management
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