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What We Might Learn About Fraud and Corporate Governance from NAB's Annus Horribilis
Author(s) -
MARTINOVBENNIE NA
Publication year - 2007
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2007.tb00340.x
Subject(s) - corporate governance , constructive , dissent , accounting , norm (philosophy) , political science , law and economics , order (exchange) , public relations , business , sociology , law , management , economics , politics , finance , computer science , process (computing) , operating system
This article responds to the recent paper by Carolyn Cordery, “NAB's ‘Annus Horribilis’: Fraud and Corporate Governance” (Australian Accounting Review 17, 2: 62–70). Cordery's paper, while a useful addition to other explorations of the NAB case, merely touches on the many complex aspects of the corporate governance debate without exploring in depth the unique features of the NAB fraud. This article acknowledges the important role of corporate governance structures as argued by Cordery. However, these conditions alone are not sufficient, and organisations need to manage dysfunction of cognitive biases in order to create a culture in which trust, respect, candour and open‐constructive dissent are the norm.