Fiduciary responsibilities and Sarbanes Oxley act of a particular project

Abstract

Over the years, several researchers are trying to clearly define the principles of fiduciary responsibilities and its importance in organization but have failed to do so. During the course of this report we have analyzed that primary concept of fiduciary responsibility in context of organization is to promote the culture of obedience, care, and loyalty, where as in case of project management the concept of fiduciary broadens. Since manager of the organization is solely responsible for the success of project and other parties also depended on the decision making quality and thus makes this process very complex. This report had further provided in-depth analyze on the impact on Sarbanes Oxley act - 2002 on the project management particularly those related to finance.

Table of contact

1) Introduction4

2) Discussion5

3) Fiduciary responsibility in corporations5

3.1) Duty of Obedience 6

3.2) Duty of Care7

3.3) Duty of loyalty7

4) Fiduciary responsibility in a particular project7

4.1) Perform a self-audit8

4.2) Sound process in selection and monitoring off investment project9

4.3) Consider buying fiduciary liability insurance 9

4.4) Benefits of public sector9

5) SOX influence on particular project10

6) Conclusion 12

7) Reference13

Fiduciary responsibilities and Sarbanes Oxley act of a particular project

Introduction

Present a sound understanding of the concept of fiduciary responsibility and its associated issues towards the uncontrollable community vestiges a widespread problem across the researches that are based on project management. Over the years, people have failed to understand the actual concept of fiduciary responsibility, particularly in nations that are in process of development. (Cunningham, 2002) it has been observed from researches that the major associated use of fiduciary responsibility in the field of project management can be observed by analyzing the modern portfolio theory that is found in prudent investor act, ERISA 404(C) and others.

In order to understand the concept of fiduciary responsibility in perspective of project management, it is necessary to be acquainted with the fact that project management comprises of critical and complex association between various people like (project manager, employees, sponsors and others). Nature of these association have urged the authorities to draft a standard theory that can distinguish the unavoidable apprehension that would incur among the project manager and project sponsor particular in situation when standard principle would transmit certain powers to other members of the project(De Marco et al, 2009).

Moreover, if the intention of both parties that are involved in project management is to enhance their market share and improve financial position that there is firm evidence to assume that the probability of agent working against the rules and regulation is very high and thus, transferring of decision-making power between two partners is very difficult.

Discussion

It is the primary responsibility of the project manager to have the awareness of problems during the tenure of a particular project and must be able to make appropriate decision exclusive of sponsor perception and acceptance of those decisions. Moreover, manger of the project has to look after their personal interest and in such circumstances; interest and objective of sponsor can only be understood if objective of ...