Can legislation restore public trust? : an analysis of the Sarbanes-Oxley Act 2002
Author(s)
Chioffi, Vanessa A. (Vanessa Anne), 1968-
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Alternative title
Sarbanes-Oxley Act of 2002
Other Contributors
Sloan School of Management.
Advisor
D. Eleanor Westney.
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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).
Date issued
2003Department
Sloan School of ManagementPublisher
Massachusetts Institute of Technology
Keywords
Sloan School of Management.