13 Jan Question 4. 4. (TCO 2) The Enron Board

Week 1 discussion

DQ1 Ethics is Personal

Initial Text:Though ethics involves our professional relationship to clients and our society at large, ethical challenges and how we resolve them have a big impact on how we feel about ourselves, our peers, and our career. With this fact in mind, I want you to think about this study in ethics as “your course.” What do you want from this course? How do you hope to benefit from a deeper understanding of ethics? (I hope that as the course progresses, you will review these thoughts and raise questions to be sure that your concerns are being met, but also that your discussion here helps me to understand and look for opportunities to respond to your individual concerns.)

DQ2 Google versus China

Read the Ethics case Google versus China” on page 41 of your text. Do you think acting legally is the same as acting ethically for a company doing business in a foreign country? Discuss the various ethical dilemmas that Google confronted when it first started operating in China and later on when the company was a victim of a hacker attack allegedly traced back to China.

Week 2 discussion

DQ1 The Enron Case

From the Enron case, assume that you are new members of the Board of Directors for Enron. What questions would you ask? What are some of the questions that the B.O.D. should ask? Why would you ask the questions that you did? (In other words, what are you trying to find out or accomplish?)

DQ2 What Does it Mean to be a Loyal Employee?

Employees should be loyal to their bosses.” Or, “Subordinates should follow the orders given to them by their manager.”

What is the meaning of the above quotes? How would you answer the question: What is more important, to be true to oneself, or to be true to one’s company?

Week 3 discussion

Showing Discomfort Over Certain Conduct

Suppose that you express your discomfort with a certain action or conduct because you consider it to be unethical. When you tell a coworker that you think that another coworker did something that you think is unethical, you make the comment that you could not sleep at night if you were to do the same thing. Or, that it would bother your conscience, so you won’t do it. Your coworker replies, “Since you are avoiding this conduct just so you can ‘sleep at night’, aren’t you also just acting in your own self-interest?” Aren’t we all just acting in our own self-interest, whether a decision is based solely on economic or moral considerations?

DQ2 Describing the Good Life

Describe the good life (not necessarily in the hedonistic or material sense, though you could if it’s a fact that reflects your values). What does a “good life” look like in the moral or ethical sense? What values, behaviors, and consequences are created when individuals choose to live a “virtuous” or good life?

Week 4 discussion

DQ1 Bribery or Opportunity in China

Review the author’s case on page 194, “Bribery or Opportunity in China Case.” From the Analysis of Stakeholders shown, explain the significance of the stakeholder and explain why John should consider them in his analysis to determine an ethical outcome.

DQ2 Practical Ethical Decision Making

Is it wise for a business executive to take into account more than profit when making decisions that have a significant social impact? Explain.

Week 5 discussion

DQ1 The Value of a Code of Ethics

A code of ethics is of little or no value. Do you agree or disagree? Support your answer.

DQ2 Outside Auditor’s Responsibilities

How has the Sarbanes-Oxley Act changed the responsibilities for auditors as they relate to the Board of Directors?

Week 6 discussion

DQ1 What Makes a Profession & a Professional?

After thinking about the question in general terms, explain, in your words, specifically what makes accounting and auditing a profession, and why accountants and auditors are professionals.

DQ2 What is the Professional Environment?

What are some of the sources of ethical guidance for the accounting profession? What is the major influence that each of these items has on the accounting profession?

Week 7 discussion

DQ1 Corporate Social Responsibilities

Why should a corporation report on its social responsibility performance? Research on the Internet an example of a corporate social responsibility report. Present a brief summary of your findings. Be sure to cite your source.

DQ2 Corporate Oversight

Describe the various risks that a business must consider that might require oversight by directors and company management (include a reference to any risk-measurement frameworks that you might have reviewed). Review the website www.coso.org/resources.htm. Discuss your findings on Enterprise Risk Management, developed by COSO (Committee of Sponsoring Organizations).

Week 1 case study

Complete the case studies for this week.

Review the case studies below in the textbook. Prepare a one-page report for each of the following case studies:

Case Study: Martha Stewart’s Lost Reputation, pg. 36

Case Study: Texaco: The Ecuador Issue, pg. 47

Case Study: Where Were the Accountants?, pg. 53

Review the document titled Requirements and Grading Rubric for Case Studies located in Doc Sharing for detailed information on the requirements for the case study report and the grading rubrics for each report. When completed, submit all of the case studies as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 2 case study

Complete the case studies for this week.

Review the case study below in the textbook. Prepare a one-page report for each of the following case studies:

Case Study: Arthur Andersen’s Troubles, pg. 98

Case Study: WorldCom: The Final Catalyst, pg. 106

Review the document titled Requirements and Grading Rubric For Case Studies located in Doc Sharing for detailed information on the requirements for the case study report and the grading rubrics for each report. When completed, submit all of the case studies as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 3 case study

Complete the case study for this week.

Review the case study below in the textbook. Prepare a one-page report for the following case study:

Case Study: Insurance and Genetically Inherited Disease, pg. 157

Review the document titled Requirements and Grading Rubric for Case Studies located in Doc Sharing for detailed information on the requirements and grading rubric for the case study report. When completed, submit it as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 4 case study

Complete the case study for this week.

Review the case study below in the textbook. Prepare a one-page report for the following case study:

Case Study: Tylenol Recalls(2010): it’s still about reputation, pg.205

Review the document titled Requirements and Grading Rubric for Case Studies located in Doc Sharing for detailed information on the requirements and the grading rubric for the case study report. When completed, submit it as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 5 case study

Complete the case studies for this week.

Review the case studies below in the textbook. Prepare a one-page report for each of the following case studies:

Case Study: Loyalty, But to Whom?, pg. 322

Case Study: Banker’s Trust: Learning from Derivatives, pg. 324

Review the document titled Requirements and Grading Rubric for Case Studies located in Doc Sharing for detailed information on the requirements and the grading rubrics for each report. When completed, submit all of the case studies as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 6 case study

Complete the case studies for this week.

Review the case studies below in the textbook. Prepare a one-page report for each of the following case studies:

Case Study: Locker Room Talk, pg. 421

Case Study: Opinion Shopping, pg. 441

Case Study: Tax Return Complications, pg. 447

Review the document titled Requirements and Grading Rubric for Case Studies located in Doc Sharing for detailed information on the requirements and the grading rubrics for each report. When completed, submit all of the case studies as one document.

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

See the Syllabus section “Due Dates for Assignments & Exams” for due date information.

Week 7 you decide 1

You Decide

Assignment

You need to write a 3-page paper to address this ethical dilemma, utilizing APA style. As part of your assignment, you should analyze the problem, define the ethical problem, recite the facts of the problem and determine the alternatives open to Brian. When detailing the alternatives, you need to explain what will be the possible result of choosing each alternative. Then make a decision as to what alternative you would choose and explain why.

Category Points Description

Understanding 10 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem.

Analysis 15 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem.

Execution 30 Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly.

Citations and APA Style 5 Use citations correctly in APA style.

Total 60 A quality paper will meet or exceed all of the above requirements.

Note

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

(See the Syllabus section “Due Dates for Assignments & Exams” for due dates.)

Week 7 you decide 2

Assignment

You need to write a 3-page paper showing that you understand the problems faced by Tom, the ex-soldier and the ethical problems faced by both. The paper should be written following proper APA format.

Note

Submit your assignment to the Dropbox, located at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions.

Week 8 final exam

1. (TCO 1) Trends in business generally are related to changes in accounting practices. For example, the globalization of business lead to the plan to harmonize GAAP for providers of capital in world markets. Which of the following best describes the implications and consequences for standard setting for the accounting profession? (Points : 6)

SOX emphasized the need for professional accountants to tend to business to ensure the viability of Private CPA firms as profitable ventures.

Enron and WorldCom debacles lead to the creation of the Securities and Exchange Commission.

The influence of the International Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) will be as influential (or more so) than SOX on accounting practices.

Unfettered private enterprise seems to be able to manage itself in a way that leads to benefits for all stakeholders.

Question 2.2. (TCO 2) Arthur Andersen was Enron s auditor and performed many duties and functions for Enron. Which of the following was not one of the functions or duties performed by Arthur Andersen? (Points : 6)

Auditor

Consultant on accounting and SPE transactions

Made decisions affecting internal control policies

Advisor or reviewer of financial disclosure matters

Question 3.3. (TCO 3) According to Trevino et al (2000), executives must first be moral or ethical people or else their followers will come to regard them as hypocrites when their true nature shows. The character traits associated with ethical leadership include all but which of the following: (Points : 6)

Humility

Honesty

Integrity

Sincerity

Question 4.4. (TCO 4) In the case of Sunbeam, the appliance company had a new CEO named Al. Al was under pressure to improve revenues and earnings. He used fraudulent techniques such as channel stuffing and failure to write entries necessary for sales allowances. The principle(s) being violated were (Points : 6)

the cost principle.

the going-concern assumption.

the revenue recognition principle.

None of the above

Question 5.5. (TCO 4) Professional codes of conduct are designed to provide guidance about conduct expected of members so that (Points : 6)

the reputation of the profession is maintained.

members who ve offended the rules of the society can be sent to jail.

the public will learn to trust no one, but rely on their own findings.

extremely voluminous details are generated and professional judgment can be avoided.

Question 6.6. (TCO 4) When Arthur Andersen shredded their audit documents related to the Enron audit, they (Points : 6)

were merely carrying out the normal, systematic procedures necessary for all auditors when they try to balance cost of storage with benefits or need for future reference.

they were violating the rule that audit documents should NEVER be destroyed.

illustrated an ethical culture designed to protect top management from blame.

were attempting to encourage employee commitment to the firm.

Question 7.7. (TCO 5) The professional accountant must use his or her judgment about which services to offer to a client. Critical value added by the professional accountant should include all of the following exept: (Points : 6)

credibility.

competence.

integrity.

conflicts of interest.

Question 8.8. (TCO 5) Accountants have a special responsibility in their relationships with clients. The fiduciary responsibility can be properly characterized by the following: (Points : 6)

confidentiality is not required.

loyalty to the client should always exceed other considerations.

fiduciary responsibility occurs especially when there is a difference in knowledge and expertise between two parties, that one must trust in the competency and integrity of the other.

fiduciary responsibility is a myth; the only reasonable moral ethic is buyer beware.”

Question 9.9. (TCO 6) Kent is associated with deontological reasoning (contrasting the consequentialist s logic). He argued that a rational person making a decision about what would be good to do would consider what action would be good for all members of society to do. Which of the following statements can describe accurately his concept of universal law? (Points : 6)

The golden rule would not qualify as a universal law, since the golden rule encourages citizens to accumulate gold for their self interest.

If you cannot wish that everyone will follow the same decision rule, it is not a moral one.

The rule is rendered useless, since Kant failed to foresee that an individual might wish bad results or consequences on everyone.

None of the above reflects fairly the deontology proposed by Kant.

Question 10.10. (TCO 9) When approaching a difficult decision making process or complex ethical dilemma, which statement would best reflect your author s view? (Points : 6)

The Five Question approach is the best method.

The six steps of problem solving is the best method.

A virtues approach will always lead to the best decision.

The circumstances will dictate which approach or combination of approaches is most suitable.

Question 11.11. (TCO 8) In utilizing the sniff test in making ethical decisions, all of the following are used in making a decision, except: (Points : 6)

Would I be comfortable if this action or decision were to appear on the front page of a national newspaper tomorrow morning?

Does my father s ethics matter in this decision?

Will my mother be proud of this decision?

Does this feel right to me?

Question 12.12. (TCO 7) CSR (Corporate Social Responsibility) has in recent times changed. Some of the trends in this area include (Points : 6)

there is a paradigm shift towards accountability to stockholders versus stakeholders.

corporations should consider their strategic goals in their operations and reporting with concern for who they wish to appear as a corporate citizen.

it is really not possible at this time to report on a company s social responsibility.

social responsibility is best limited primarily to political donations and intervention in government processes through lobbyists.

Question 13.13. (TCO 1) In the 1980s and 1990s, various activist stakeholders become apparent and started expressing their views to the general public. Some were interested in buying products and services made in ethically acceptable manners. Which of the following were not concerned with ethical matters in business? (Points : 6)

Ethical consumers

Ethical investors

Both A and B

Neither A nor B

Question 14.14. (TCO2) The Senate Permanent Subcommittee on Investigations released its report. Based upon the evidence presented to it, the subcommittee made the following findings with regard to Enron s Board of Directors. Which finding was not a part of the report? (Points : 6)

Fiduciary failure

Inappropriate Conflicts of Interest

Lack of Independence

Allowed the SPEs to be separate from Enron

Question 15.15. (TCO 3) Moral and ethical codes contain various characteristics. Which of the following is not a characteristic? (Points : 6)

Beliefs about ideals, about what is good or desirable or worthy of pursuit for its own sake.

Inquiry about ways of life and rules of conduct

Rules laying down what ought to be done and what ought not to be done

Motives that incline us to choose the right or the wrong course

Page 2

Question 1. 1. (TCO 3 and 4) A typical framework for a code of conduct for professional accountants will include at least six different areas of concern. What are these six areas? Give an example of each. (Points : 30)

Question 2. 2. (TCO 6) The Encyclopedia of Philosophy has three definitions of ethics. Please describe each definition and give an example. (Points : 30)

Question 3. 3. (TCO 7) The professional codes of conduct are meant to clarify the relationships between various acts that can be carried out by an individual or firm. However, there are some items that codes of conduct do not seem to be able to clarify. What are some of these items? (Name and explain at least four of these). (Points : 30)

Question 4. 4. (TCO 2) The Enron Board of Directors formed a subcommittee headed by William Powers, Jr. This subcommittee submitted a report of its findings. Summarize the findings presented by this subcommittee. (Points : 30)

Question 5. 5. (TCO 4) Discuss the philosophy of Consequentialism. (Points : 20)

Question 6. 6. (TCO 5) What is a stakeholder-accountability oriented governance process? (Points : 20)