COSO Explores Avoiding Bias in Individual Business Decisions as a form of Corporate Governance
September/October, 2012 Issue.
- K. Kinkela, NY Institute of Technology
- P. Harris, NY Institute of Technology
- W. Stahlin, Stevens Institute of Technology
Bill Stahlin is an affiliate associate professor at Stevens, Howe School of Technology Management. He has over 30 years of teaching experience and 10 years’ experience in public accounting. He is both a CPA and CGMA. He is the mid-Atlantic regional coordinator for the American Accounting Associations’ teaching, learning and curriculum section. He’s made numerous presentations on teaching pedagogy and co-authored an instructor-training course while at Coopers & Lybrand. He can be reached [email protected].
The Board of Directors of a corporation has a responsibility to oversee the critical decisions made by the officers and managers of the corporation, in order to ensure that the company is being run in the best interest of the shareholders. In March 2012, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) released a white paper entitled “Enhancing Board Oversight Avoiding Judgment Traps and Biases.” COSO is an organization comprised of 5 accounting and corporate governance governing bodies: the American Institute of Certified Public Accountants (AICPA), the American Accounting Association (AAA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA) and the Financial Executives Institute (FEI). This March 2012 white paper expanded on the previous work by COSO on the corporate governance responsibilities of the board of directors of a corporation.