business ethic

Evaluating Ethical Considerations arising in Financial Accounting

There have been a number of high profile accounting scandals. Enron and Worldcom are well known and have been extensively evaluated by regulatory agencies, the courts and others. You are requested to research and write a paper (4 pages, double spaced using 12 point font) evaluating a questionable accounting practice (excluding Enron and Worldcom). You can select from the examples provided in Appendix A. The topic should be fairly recent.

You cannot submit a paper you used for other ethics assignments in a different course. This is considered to be plagiarism and consequences are very serious.

The paper should summarize the facts giving rise to the questionable accounting practice(s) and include (but is not limited to):

· What parties were involved in the questionable practice?

· CEO?

· CFO?

· Internal accounting or tax departments?

· Third-party provider of financial products or services?

· External Auditor?

· Other?

· What enabled the accounting scandal?

· Corporate culture – (tone at the top)?

· External or internal pressure?

· Corporate compensation practices and policies?

· What controls or processes could have been instituted to deter the questionable accounting practices?

· Statement of corporate value (Code of Conduct) and other policies?

· Corporate culture that encourages reporting of questionable activities?

· External auditor awareness and/or engagement?

· Internal audit oversight including independent Audit Accounting Committee oversight?

· Other?

· What principles as provided by the Institute of Management Accountants (IMA) Statement of Ethical Professional Practice were violated or placed into question?

· Competence?

· Confidentiality?

· Integrity?

· Credibility?

· What penalties, if any, were imposed? Were they adequate from your perspective?

· Loss of position or compensation?

· Suspension of license or other privileges?

· Civil?

· Criminal?

Appendix A

(References listed below are representative and not comprehensive –

additional research recommended)

Celadon Group Inc (2016)