TITLE

A comparison of the Viable System Model and Seven Models of Risk with the effects of the Sarbanes-Oxley legislation

AUTHOR(S)
Leonard, Allenna
PUB. DATE
April 2006
SOURCE
Journal of Organisational Transformation & Social Change;2006, Vol. 3 Issue 1, p85
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
A strong need to respond to threats to the credibility of large corporations and their auditors in the wake of scandal led to the passage of legislation focused on controls rather than control. The limitations of this approach are discussed and compared with the more comprehensive perspective of a whole systems approach. Stafford Beer's Viable System Model(VSM) and the Seven Models of Risk published by the Canadian Institute of Chartered Accountants(CICA) are described. They are compared with one another and found to be compatible. The response to Sarbanes-Oxley, in contrast, has led to a great deal of effort spent on compliance activities and their verification. It is contended in this paper that this is not as effective as a systems approach for constraining error and fraud, and promoting strong ethical values such as transparency and common commitment to shared objectives.
ACCESSION #
24279437

 

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