A Breech Debate Series discussion

by Bryan Reaves, Student Advisory Board

The Breech School of Business debate series started the year with a debate concerning the topic of whistleblowing as related to Sarbanes Oxley. The debate coincided with the dedication of Breech 105 as the BKD Room in recognition of the great contributions made by the accounting firm BKD, LLP to Drury University throughout the years. The debate took place in the Breech Lounge, which was once again filled to capacity, demonstrating the appeal of the debate series to individuals within the Breech School as well as the campus as a whole.

The issue of whistleblowing, which may be described as the obligation of employees to notify government regulators of behavior or activities which violate legal or regulatory standards, has been present long before the implementation of Sarbanes Oxley. However, the wave of corporate scandals which swept the nation after the Enron and WorldCom incidents prompted Congress to pass an aggressive set of initiatives to expand upon whistleblowing requirements and auditor independence.

Representing the view that the Sarbanes Oxley reforms were a positive addition to the nation’s regulatory system were Dr. Penny Clayton and Jeremy Clopton. They presented the view that whistleblowing is justified, necessary, and serves to decrease the potential for more Enron-like fiascos. While no regulatory act is perfect, Sarbanes Oxley does establish higher standards for financial reporting and adherence to accepted principles.

On the other side of the argument was the team of Dr. Rod Oglesby and Tyler Creach. This group presented the view that Sarbanes Oxley represents a gross abuse of regulatory authority and whistleblowers have breached an obligation of trust with the firm. This team cited the number of false reports to regulators and the capacity of most employees for actually distinguishing between legitimate and illegal activities. The team also stated that investors should be aware of the risks of investments in securities and the high potential for losses associated with those investments.

A look back...

The debate team: (from left) Dr. Oglesby, Jeremy Clopton, Dr. Clayton, Bryan Reaves (moderator), Tyler Creach		Visiting BKD Representatives
Students enjoying free pizza before the debate		The audience