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Ethical Obligations and Decision-Making in Accounting: Text and Cases by Steven Mintz EBOOK PDF Instant Download
Table of Contents
Cover
Title Page
Copyright
Dedication
About the authors
Preface
Connect
Acknowledgments
Case Descriptions
Brief contents
Table of Contents
Chapter 1 Ethical Reasoning: Implications for Accounting
Ethics Reflection
Integrity: The Basis of Accounting
Religious and Philosophical Foundations of Ethics
What Is Ethics?
Difference between Ethics and Morals
Norms, Values, and the Law
Ethical Relativism
Situation Ethics
Social Networkers and Workplace Ethics
Cultural Values
The Six Pillars of Character
Trustworthiness
Respect
Responsibility
Fairness
Caring
Citizenship
Expectations of Millennials
Reputation
Civility, Ethics, and Workplace Behavior
Modern Moral Philosophies
Teleology
Deontology
Justice
Virtue Ethics
The Public Interest in Accounting
Regulation of the Accounting Profession
AICPA Code of Conduct
Virtue, Character, and CPA Obligations
Application of Ethical Reasoning in Accounting
DigitPrint Case Study
Scope and Organization of the Text
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 1 Cases
Case 1-1: Harvard Cheating Scandal
Case 1-2: Giles and Regas
Case 1-3: NYC Subway Death: Bystander Effect or Moral Blindness
Case 1-4: Lone Star School District
Case 1-5: Reneging on a Promise
Case 1-6: Capitalization versus Expensing
Case 1-7: Eating Time
Case 1-8: Shifty Industries
Case 1-9: Cleveland Custom Cabinets
Case 1-10: Better Boston Beans
Chapter 2 Cognitive Processes and Ethical Decision Making in Accounting
Ethics Reflection
Kohlberg and the Cognitive Development Approach
Heinz and the Drug
Universal Sequence
The Ethical Domain in Accounting and Auditing
Moral Reasoning and Moral Behavior
Rest’s Four-Component Model of Ethical Decision Making
Moral Sensitivity
Moral Judgment
Moral Motivation
Moral Character
Moral Intensity
Aligning Ethical Behavior and Ethical Intent: Virtue-Based Decision Making
Ethical Decision-Making Models
Kidder’s Ethical Checkpoints
Integrated Ethical Decision-Making Process
Application of the Integrated Ethical Decision-Making Model: Ace Manufacturing
Behavioral Ethics
Giving Voice to Values
Reasons and Rationalizations
Basic Exercise in GVV
Ace Manufacturing: GVV Analysis
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 2 Cases
Case 2-1: A Team Player? (a GVV case)
Case 2-2: FDA Liability Concerns (a GVV case)
Case 2-3: The Tax Return (a GVV case)
Case 2-4: A Faulty Budget (a GVV case)
Case 2-5: Gateway Hospital (a GVV case)
Case 2-6: LinkedIn and Shut Out
Case 2-7: Milton Manufacturing Company
Case 2-8: Juggyfroot
Case 2-9: Phar-Mor
Case 2-10: WorldCom
Chapter 3 Organization Ethics and Corporate Governance
Ethics Reflection
Organizational Ethics and Leadership
Ethical Issue Intensity
Individual Factors
Organizational Factors
Opportunity
Business Ethics Evaluations and Intentions
Ethical or Unethical Behavior
Organization Influences on Ethical Decision Making
Ethical Dissonance Model
Seven Signs of Ethical Collapse
Pressure to Maintain the Numbers
Fear of Reprisals
Loyalty to the Boss
Weak Board of Directors
Stakeholder Orientation
The Case of the Ford Pinto
Establishing an Ethical Culture
Trust in Business
Johnson & Johnson: Trust Gained
Johnson & Johnson: Trust Deficit
Ethics in the Workplace
Character and Leadership in the Workplace
Integrity: The Basis for Trust in the Workplace
Employees Perceptions of Ethics in the Workplace
Fraud in Organizations
Occupational Fraud
Internal Control Weaknesses
Financial Statement Fraud
Foundations of Corporate Governance Systems
Defining Corporate Governance
Views of Corporate Governance
Corporate Governance Regulation
Executive Compensation
Corporate Governance Structures and Relationships
Ethical and Legal Responsibilities of Officers and Directors
Honest Services Fraud
Relationships between Audit Committee, Internal Auditors, and External Auditors
Internal Controls as a Monitoring Device
Compliance Function
Has SOX Accomplished Its Intended Goal?
Whistleblowing
Morality of Whistleblowing
Rights and Duties
Obligation to Report Fraud
Dodd-Frank Provisions
The Morality of Whistleblowing
Whistleblowing Experiences
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 3 Cases
Case 3-1: The Parable of the Sadhu
Case 3-2: Rite Aid Inventory Surplus Fraud
Case 3-3: United Thermostatic Controls (a GVV case)
Case 3-4: Franklin Industries’ Whistleblowing (a GVV Case)
Case 3-5: Walmart Inventory Shrinkage (a GVV Case)
Case 3-6: Bennie and the Jets (a GVV Case)
Case 3-7: Olympus
Case 3-8: Accountant takes on Halliburton and Wins!
Case 3-9: Bhopal, India: A Tragedy of Massive Proportions
Case 3-10: Accountability of Ex-HP CEO in Conflict of Interest Charges
Chapter 4 Ethics and Professional Judgment in Accounting
Ethics Reflection
What is Professional Judgment in Accounting?
Link between Attitudes, Behaviors, and Judgment
KPMG Professional Judgment Framework
Link between KPMG Framework and Cognitive Processes
Role of Professional Skepticism
The Public Interest in Accounting
Professionalism versus Commercialism
Investigations of the Profession: Where Were the Auditors?
Metcalf Committee and Cohen Commission: 1977–1978
House Subcommittee on Oversight and Investigations: 1986
Savings and Loan Industry Failures: Late 1980s–Early 1990s
Treadway Commission Report
The Role of the Accounting Profession in the Financial Crisis of 2007–2008
AICPA Code: Independence Considerations for Members in Public Practice
Introduction to Revised Code
Members in Public Practice
Conceptual Framework for AICPA Independence Standards
Safeguards to Counteract Threats
Global Code of Ethics
Relationships That May Impair Independence
SEC Position on Auditor Independence
SEC Actions Against Big Four CPA Firms
Insider Trading Cases
“Operation Broken Gate”
AICPA Code: Ethical Conflicts
Integrity and Objectivity
Conflicts of Interest
Subordination of Judgment
AICPA Code: Conceptual Framework for Members in Business
Threats and Safeguards
Ethical Conflicts
Integrity and Objectivity/Conflicts of Interest
Subordination of Judgment
Link between Conceptual Framework and Giving Voice to Values
SOX: Nonaudit Services
Rules of Professional Practice
General Standards Rule (1.300.001)
Acts Discreditable (1.400.001)
Contingent Fees (1.510.001)
Commissions and Referral Fees (1.520.001)
Advertising and Other Forms of Solicitation (1.600.001)
Confidential Information (1.700.001)
Form of Organization and Name (1.800.001)
Commercialism and the Accounting Profession
Ethics and Tax Services
Statements on Standards for Tax Services (SSTS)
Tax Shelters
PCAOB Rules
Rule 3520—Auditor Independence
Rule 3521—Contingent Fees
Rule 3522—Tax Transactions
Rule 3523—Tax Services for Persons in Financial Reporting Oversight Roles
Rule 3524—Audit Committee Preapproval of Certain Tax Services
Rule 3525—Audit Committee Preapproval of Nonauditing Services Related to Internal Control over Financial Reporting
Rule 3526—Communication with Audit Committees Concerning Independence
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 4 Cases
Case 4-1: KBC Solutions
Case 4-2: Beauda Medical Center
Case 4-3: Family Games, Inc.
Case 4-4: Commercialism versus Professionalism (a GVV case)
Case 4-5: Han, Kang & Lee, LLC
Case 4-6: Tax Shelters
Case 4-7: M&A Transaction
Case 4-8: Valley View Hospital
Case 4-9: AOL-Time Warner
Case 4-10: Navistar International
Chapter 5 Fraud in Financial Statements and Auditor Responsibilities
Ethics Reflection
Fraud in Financial Statements
Nature and Causes of Misstatements
Errors, Fraud, and Illegal Acts
Reporting Fraud/Illegal Acts
The Fraud Triangle
Incentives/Pressures to Commit Fraud
Opportunity to Commit Fraud
Rationalization for the Fraud
Tyco Fraud
Fraud Considerations and Risk Assessment
Fraud Risk Assessment
Internal Control Assessment
Enterprise Risk Management—Integrated Framework
Audit Committee Responsibilities for Fraud Risk Assessment
Auditor’s Communication with Those Charged with Governance
Management Representations and Financial Statement Certifications
Audit Report and Auditing Standards
Background
Audit Report
Audit Opinions
Limitations of the Audit Report
Generally Accepted Auditing Standards (GAAS)
Professional Skepticism
PCAOB Standards and Inspections
PCAOB Standards
Audit Deficiencies—SEC Actions
PCAOB Inspections Program
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 5 Cases
Case 5-1: Loyalty and Fraud Reporting (a GVV case)
Case 5-2: ZZZZ Best
Case 5-3: Imperial Valley Community Bank
Case 5-4: Busy Season Planning
Case 5-5: Tax Inversion (a GVV case)
Case 5-6: Rooster, Hen, Footer, and Burger
Case 5-7: Diamond Foods: Accounting for Nuts
Case 5-8: Bill Young’s Ethical Dilemma
Case 5-9: Royal Ahold N.V. (Ahold)
Case 5-10: Groupon
Chapter 6 Legal, Regulatory, and Professional Obligations of Auditors
Ethics Reflection
Legal Liability of Auditors: An Overview
Common-Law Liability
Liability to Clients—Privity Relationship
Liability to Third Parties
Actually Foreseen Third Parties
Reasonably Foreseeable Third Parties
Auditor Liability to Third Parties
Statutory Liability
Securities Act of 1933
Key Court Decisions
Securities Exchange Act of 1934
Court Decisions and Auditing Procedures
Private Securities Litigation Reform Act (PSLRA)
Proportionate Liability
“Particularity” Standard
SOX and Auditor Legal Liabilities
Section 404. Internal Control over Financial Reporting
Section 302. Corporate Responsibility for Financial Reports
Perspective on Accomplishments of SOX
Foreign Corrupt Practices Act (FCPA)
Regulatory and Professional Issues: An International Perspective
Restoring the Public Trust
International Financial Reporting
Principles- versus Rules-Based Standards
Compliance and Ethical Issues
Global Ethics, Fraud, and Bribery
Global Ethics
Global Fraud
Global Bribery
PCAOB Inspections of Chinese Companies
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 6 Cases
Case 6-1: Advanced Battery Technologies: Reverse Merger
Case 6-2: Heinrich Müller: Big Four Whistleblower? (a GVV case)
Case 6-3: Richards & Co: Year-end Audit Engagement
Case 6-4: Anjoorian et al.: Third-Party Liability
Case 6-5: Vertical Pharmaceuticals Inc. et al. v. Deloitte & Touche LLP
Case 6-6: Kay & Lee, LLP
Case 6-7: Getaway Cruise Lines: Questionable Payments to do Business Overseas (a GVV case)
Case 6-8: Con-way Inc.
Case 6-9: Satyam: India’s Enron
Case 6-10: Autonomy
Chapter 7 Earnings Management
Ethics Reflection
Motivation for Earnings Management
Earnings Guidance
Nonfinancial Measures of Earnings
Income Smoothing
Characteristics of Earnings Management
Definition of Earnings Management
Ethics of Earnings Management
How Managers and Accountants Perceive Earnings Management
Earnings Quality
Accruals and Earnings Management
Earnings Management Judgments
Acceptability of Earnings Management from a Materiality Perspective
Earnings Management Techniques
CVS Caremark Acquisition of Longs Drugstores
Definition of “Revenue Recognition”
New Revenue Recognition Standard
Earnings Management: One More Thing
Financial Shenanigans
Financial Statement Effects
Red Flags of Earnings Management
Examples of Shenanigans
Financial Statement Restatements
Characteristics of Restatements
Hertz Accounting Restatements
Restatements Due to Errors in Accounting and Reporting
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 7 Cases
Case 7-1: Nortel Networks
Case 7-2: Solutions Network, Inc. (a GVV case)
Case 7-3: GE: “Imagination at Work”
Case 7-4: Harrison Industries (a GVV case)
Case 7-5: Dell Computer
Case 7-6: TierOne Bank
Case 7-7: Sunbeam Corporation
Case 7-8: Sino-Forest: Accounting for Trees
Case 7-9: The North Face, Inc.
Case 7-10: Beazer Homes
Chapter 8 Ethical Leadership and Decision-Making in Accounting
Ethics Reflection
What Is Ethical Leadership?
Moral Person and Moral Manager
Authentic Leaders
Transformational Leadership
Followership and Leadership
Social Learning Theory
Moral Intensity
The Role of Moral Intensity, Organizational Culture, and Ethical Leadership in Accounting
Ethical Leadership and Audit Firms
Gender Influence on Decision Making of Public Accounting Professionals
Ethical Leadership and the Internal Audit Function
Ethical Leadership and Tax Practice
The Role of CFOs
Ethical Leadership Failure
Implications for Whistleblowing in Accounting
A Case Study in Ethical Leadership
Accounting Leaders Discussed in the Text
Values-Driven Leadership
Ethical Leadership Competence
Concluding Thoughts
Discussion Questions
Endnotes
Chapter 8 Cases
Case 8-1: Research Triangle Software Innovations (a GVV case)
Case 8-2: Cumberland Lumber
Case 8-3: Parmalat: Europe’s Enron
Case 8-4: KPMG Tax Shelter Scandal
Case 8-5: Krispy Kreme Doughnuts, Inc
Case 8-6: Rhody Electronics: A Difficult Client (a GVV case)
Major Cases
Major Case 1: Adelphia Communications Corporation
Major Case 2: Royal Ahold N.V. (Ahold)
Major Case 3: Madison Gilmore’s Ethical Dilemma (a GVV Case)
Major Case 4: Cendant Corporation
Major Case 5: Vivendi Universal
Major Case 6: Waste Management
Name index
Subject index
