Abstract
The Treadway Commission examined the causes offraudulent financial reporting and maderecommendations to curb its occurrence. In itsrecommendations to educators, the TreadwayCommission (1987) stated that ``(b)usinessschools should encourage business andaccounting faculty to develop their ownpersonal competence as well as classroommaterials for conveying information, skills,and ethical values that can help prevent,detect, and deter fraudulent financialreporting'' (p. 83). The purpose of this studywas to determine whether the repeatedprisoner's dilemma game could be used as a toolto increase individuals' moral reasoning. Itwas hoped that this exercise would encouragetrust (Rapoport and Chammah, 1965) andreciprocal altruism (Dawes, 1988) as theylearned to cooperate with one another in orderto maximize their payoffs.
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