Why might ethical corporate behavior lead to higher profitability?
Its more effective to focus on providing goods and services required by society
efficiently, effectively, legally and ethically than to adopt the high-risk goal of making
profit any way po
The ethical theory of Egoisms supports the school boards first alternative to not do anything
about the bomb threat. Egoists only think about themselves when choosing an alternative. If the school
board warns the faculty and students about the threat, the
ACCT 7401 Fall 2015
Tentative Schedule Updated 10/05/2015
Reading Assignment to be completed by
the beginning of class on the day assigned
The WorldCom fraud was the largest in U.S. history, surpassing even that of Enron. Beginning
modestly during mid-year1999 and continuing at an accelerated pace through May 2002, the
company, under the direction of Bernie Ebbers, the CEO,
Im sorry, Lucy. Thats the way it is, Ricardo Rikey said.
I just dont know if I can go along with it, Rikey, Lucy replied.
We have no choice. Juggyfroot is our biggest client, Lucy. Theyve warned us that they will put the engagement
Bhopal, India: A Tragedy of Massive Proportions
We are citizens of the world. The tragedy of our times is that we do not know this.
Woodrow T. Wilson (18561924), 28th president of the United States
At five past midnight on December 3, 1984, 40 to
Beauda Medical Center
Lance Popperson woke up in a sweat, with an anxiety attack coming on. Popperson popped two antianxiety pills, laid down to try and sleep for the third time that night, and thought once again about his
dilemma. Popperson is a
Family Games, Inc.
Yeah, I know all of the details werent completed until January 2, 2014, but we agreed on the transaction
on December 30, 2013. By my way of reasoning its a continuation transaction and the $12 million revenue
belongs in the res
Wanda David, a licensed CPA, works for Gee LLC, a professional accountancy corporation with offices in
Wisconsin and Illinois, in the audit department and she also has some small business clients she services in
her spare time generally o
Yimei was a senior state auditor in Michigan and licensed CPA. She has been assigned the audit of Family
Outreach (FO), a non-profit social services organization that helps about 32,000 families a year with childraising and child-
The story of ZZZZ Best is one of greed and audaciousness. It is the story of a 15-year-old boy from Reseda,
California, who was driven to be successful regardless of the costs. His name is Barry Minkow.
Minkow had high hopes to make it
Case 6- 8
Kay and Lee LLP has just been retained as the auditor for Holligan Industries to audit the financial statements required
by a bank, Second National Bank & Trust, as a prerequisite to extending a loan to the client. The auditor knows
Are right actions are right cause god says they are right?
Right actions are right because god prove them.
Everyone has personal value.
Actions are right because of principle rules
Practical healthy employee and employer relationship
The first option, to do nothing, is very risky. Although most bomb threats to schools are just a
hoax, the price that will be paid if there is an actual bomb, namely human life, is too high to quantify.
This is similar to the Ford Pinto case, where after
Lessons From the
Three famous accounting frauds
From the Journal of
ALike a torrent of cold water the wave of publicity by
thecase has shocked the accountancy profession
into breathlessness. Accustomed to relative obscurity
in the public
The first thing is profit
Along with the profit, is externalities.
- Those directly measurable
eg - pollution
(why donation)some believe it is the right thing to do. To decrease tax
- Those not directly measurable eg
House of cards
For them, it is a piece of paper and you are going to lose it
911face a hard time to their business/ stock low
house price grow much higher than income
mortgage banked security
stated income you
Individual Project Two
1. Key factors:
Louisiana Custom Cabinets (LCC) is a privately held, high-end homes' specialty
James Tiroux is the owner of LCC.
Mac Sims, who is a CPA, is the accounting manager of LCC.
1. Which of the following is the preferred approach if the appearance of having a conflict of interests
can be avoided as well as the reality?
B. Disclosure to those stakeholders relying on the decision
C. Management of the conflic
Many people have a stake or interest in a business, its activities, and impacts.
2. Hypernorms (Table 1.2)
Hypernorms (Basic Values) Underlying Stakeholder Interests
A hypernorm is a value that is almost universally respected by s
is a very powerful motivator that can disadvantage clients, the public,
and other stakeholders through a degradation of the services offered by a professional
Professional accounting literature
PCAOB AU 317-public firm
GAAP acct for contribution/bad debts
AICPA- Code of conduct
P The candidates
P Government regulators
S CPA profes
1. Which one of the following is the limitation of traditional risk management?
A. It cannot incorporate financial impacts on shareholders
B. It cannot incorporate nonfinancial impacts on shareholders
C. It cannot incorporate neither financial nor nonfina
5. Integrity and ethics: Tanzi made fraud to maximize the profits of the company. If he
is a qualified leader and is ethic, he wont use this kind of strategy to benefit the
Audit commitment participation: the audit committee is neither independen
1. They are systemic through the business.
One corporate may have transactions with many other firms. If one of them
has unethical or illegal behaviors, its partner firm would be affected a lot. For
example: Enron and Arthur Andersen
If the legislations
Reznor v. J. Artist Management (JAM), Inc.
Michael Trent Reznor met John Malm Jr., a part-time promoter of local rock bands who also is a licensed
CPA, in Cleveland, Ohio, in 1985. Malm became Reznors manager and formed J. Artist Management