Accounting

1) R_e_s_e_a_r_c_h_ _t_h_e_ _f_o_l_l_o_w_i_n_g_ _3_ _a_c_c_o_u_n_t_i_n_g_/_b_u_s_i_n_e_s_s_ _s_c_a_n_d_a_l_s_ _u_s_i_n_g_ _t_h_e_ _i_n_t_e_r_n_e_t_ _o_r_ _o_t_h_e_r_ _s_o_u_r_c_e_s_:_ _

a) Bernie Madoff

b) Worldcom

c) Diamond Nuts

2) T_a_k_e_ _t_h_e_ _o_n_l_i_n_e_ _q_u_i_z_ _i_n_ _t_h_e_ _“E_t_h_i_c_s_ _A_s_s_i_g_n_m_e_n_t_” _s_e_c_t_i_o_n_ _o_f_ _B_l_a_c_k_b_o_a_r_d_ _f_o_r_ _o_u_r_ _c_l_a_s_s_._ _

A_d_d_i_t_i_o_n_a_l_ _D_e_t_a_i_l_s_:_ _

1) The 3 accounting scandals listed above are important examples of individuals and companies that have betrayed the trust of their investors and stakeholders. In some cases, Generally Accepted Accounting Principles were not followed. In addition, certain accounting principles, assumptions and qualitative characteristics (covered on pages 28-31 of our textbook) were not followed. Before the scandals were discovered, they resulted in higher net income for the individuals and/or companies. After the accounting and/or business improprieties were uncovered, they resulted in serious consequences for several groups of stakeholders.

2_)_ _E_x_p_e_c_t_a_t_i_o_n_s_ _a_n_d_ _t_i_m_e_ _c_o_m_m_i_t_m_e_n_t_ _-_ _i_n_ _o_r_d_e_r_ _t_o_ _b_e_ _s_u_c_c_e_s_s_f_u_l_ _o_n_ _t_h_i_s_ _a_s_s_i_g_n_m_e_n_t_,_ _i_t_ _i_s_ _s_t_r_o_n_g_l_y_ _s_u_g_g_e_s_t_e_d_ _t_h_a_t_ _y_o_u_:_ _

a. Spend a_t_ _l_e_a_s_t_ _3_-_5_ _h_o_u_r_s_ _researching the scandals (_1_-_2_ _h_o_u_r_s_ _p_e_r_ _s_c_a_n_d_a_l_)_. You will be expected to read s_e_v_e_r_a_l_ _articles on each of the scandals, since the facts of the scandal and the related investigations/punishments occurred over periods of time.

b. T_a_k_e_ _n_o_t_e_s_ _on the key points, dates, names, etc. related to each scandal. You may want to print the key articles for each scandal.

c. S_t_u_d_y_ _y_o_u_r_ _n_o_t_e_s_ _a_n_d_ _a_r_t_i_c_l_e_s_ _BEFORE your first taking your first attempt at the online quiz.

3_)_ _Q_u_i_z_ _d_e_t_a_i_l_s_:_ _

a. There is a pool of approximately 60 multiple choice and true/false questions on the 3 scandals. You will have to answer 1_5_ _r_a_n_d_o_m_l_y_-_s_e_l_e_c_t_e_d_ _q_u_e_s_t_i_o_n_s_ _from this pool. These questions will thoroughly test your knowledge of the 3 scandals listed above.

b. You will have T_W_O_ _a_t_t_e_m_p_t_s_ _at the online quiz, and I will take your highest score.

c. You will be given 2_0_ _m_i_n_u_t_e_s_ _to complete the quiz.

d_._ _You A_R_E_ _allowed to use your study materials (i.e.-notes and articles) during the quiz, b_u_t_ _y_o_u_ _a_r_e_ _N_O_T_ _a_l_l_o_w_e_d_ _t_o_ _u_s_e_ _y_o_u_r_ _c_o_m_p_u_t_e_r_ _(_i_._e_._-_f_o_r_ _r_e_s_e_a_r_c_h_)_ _d_u_r_i_n_g_ _t_h_e_ _q_u_i_z_._ _

e. D_u_e_ _D_a_t_e_:_ _The online quiz must be taken by 1_1_:_4_5_p_m_ _o_n_ _M_o_n_d_a_y_,_ _M_a_r_c_h_ _3_._ _Late assignments will incur the penalties as noted in the syllabus (25-100%).

4) Q_u_i_z_ _q_u_e_s_t_i_o_n_s_ _w_i_l_l_ _i_n_c_l_u_d_e_ _d_e_t_a_i_l_e_d_ _q_u_e_s_t_i_o_n_s_ _o_n_ _t_h_e_ _f_o_l_l_o_w_i_n_g_ _t_o_p_i_c_s_:_ _

a_._ _T_h_e_ _n_a_t_u_r_e_ _o_f_ _a_n_d_ _s_p_e_c_i_f_i_c_ _d_e_t_a_i_l_s_ _o_f_ _e_a_c_h_ _s_c_a_n_d_a_l_ _t_h_a_t_ _o_c_c_u_r_r_e_d_._ _

b. D_a_t_e_s_ _the scandal occurred.

c. N_a_m_e_s_ _a_n_d_ _t_i_t_l_e_s_ _of the key people, such as the CEO, CFO, Controller, outside auditing firm, the person or internal auditor who discovered the scandal, etc.

d. The d_o_l_l_a_r_ _a_m_o_u_n_t_ _of the accounting error or business scandal.

e. The ways in which ethics were violated, Generally Accepted Accounting Principles were violated, and/or profits were improperly raised.

f. B_e_f_o_r_e_ _t_h_e_ _s_c_a_n_d_a_l_s_ _w_e_r_e_ _d_i_s_c_o_v_e_r_e_d_, how did the higher net income of the company/business benefit:

i. the company

ii. the bonuses and total income of top executives

g. A_f_t_e_r_ _t_h_e_ _a_c_c_o_u_n_t_i_n_g_ _a_n_d_/_o_r_ _b_u_s_i_n_e_s_s_ _i_m_p_r_o_p_r_i_e_t_i_e_s_ _w_e_r_e_ _u_n_c_o_v_e_r_e_d_, what were the dollar and other penalties, punishments and/or other negative repercussions to:

i. the company

ii. the employees of the company

iii. the company’s key executives

iv. the company’s investors/shareholders