MGHC02H3 Chapter Notes - Chapter --: Soft Skills, Lifelong Learning, Opportunity Cost
Document Summary
Why good accountants do bad audits (bazerman, loewenstein, & moore): Sarbanes-oxley act of 2002 (july 30: new legal constraints on executives, gives expanded protections to whistle-blowers, accounting industry under tightened federal oversight, regulatory board punish corruption and monitors accounting firms, establishes stiff criminal penalties for accounting fraud. Not just corruption and fraud in accounting scandals. Greater the differe(cid:374)(cid:272)e i(cid:374) (cid:374)egotiators" (cid:271)eliefs, the harder it (cid:449)as to (cid:272)o(cid:373)e to a(cid:374) agree(cid:373)e(cid:374)t: unconscious bias works by distorting how people interpret info. Accounting for bad accounting: 3 structural aspects of accounting. Bias thrives wherever there is the possibility of interpreting info in different ways. Tend to reach self-serving conclusions whenever ambiguity surrounds a piece of evidence. Interpretations and weighting of various types of info are rarely straightforward. Tro(cid:374)g (cid:271)usi(cid:374)ess reaso(cid:374)s to re(cid:373)ai(cid:374) i(cid:374) (cid:272)lie(cid:374)ts" good gra(cid:272)es highly motivated to appro(cid:448)e their (cid:272)lie(cid:374)t"s a(cid:272)(cid:272)ou(cid:374)ts: client companies fire accounting firms that deliver unfavourable audits.
