A Study of Applying Forensic Accounting to Business Judgment Rule

• Main Authors: Hsiu-hui Huang, 黃秀惠
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/90299282997825602914

碩士 === 朝陽科技大學 === 財務金融系碩士班 === 101 === In face of a highly competitive business world, the operational level of one organization shall be entitled to more authority to make strategic decisions in a context of drastic changes. To avoid business operators being looked into the responsibilities arising out of wrong decisions that result in operators’ adoption of risk aversion decision, the American business judgment rule has thus emerged. In terms of views in judicial practice in Taiwan, the business judgment rule has been applied to civil, criminal judgments. As the American business judgment rule is only applicable to civil cases, some scholars oppose applying the rule to criminal case. Even for civil cases, some scholars hold off their opinions of introducing the business judgment rule as there will be no opportunity for shareholders to win a lawsuit under the circumstances of asymmetric information. Most of judges have no background in business operations, and if business decisions are made with a good intention by directors and have appropriate attention, directors shall not face post-investigation, hearing nor be liable for compensatory damages despite the fact that strategic decisions result in business loss. In view of such condition, it highlights the necessity for Taiwan to introduce the Business Judgment Rule. In view of the frequent outbursts of economic scandals of complex fraudulent means in recent years, courts can hardly solve such cases simply from legal perspectives. To deal with this issue, some domestic scholars stand for the introduction of the forensic accounting system which has been practiced in the US for decades, using forensic accounting which uses the knowledge of law, audit, accounting and criminology to support judicial litigation. At the time of introducing the business judgment rule in Taiwan, if forensic accounting can be used as the tool in assisting with court judgment when judges suppose that business operators conform to the business judgment rule, judgments made by court will be more impartial, objective that conforms to fact.