{"id":35525,"date":"2022-02-23T10:59:01","date_gmt":"2022-02-23T10:59:01","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/?p=35525"},"modified":"2022-02-23T10:59:01","modified_gmt":"2022-02-23T10:59:01","slug":"accounting-ethics","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/accounting-ethics\/","title":{"rendered":"Accounting Ethics"},"content":{"rendered":"<p>Accounting Ethics<\/p>\n<p>Read case 2-10 WorldCom (textbook<sup>*<\/sup> p. 112-114). Watch Cynthia Cooper, former vice president of internal audit at WorldCom, speak about how she uncovered the massive fraud, why she decided to blow the whistle, and what her experience can teach us for future fraud prevention and detection: <a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">https:\/\/www.c<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">&#8211;<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">span.org\/video\/?201829<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">&#8211;<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">1\/extraordinary<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">&#8211;<\/a><a href=\"https:\/\/www.c-span.org\/video\/?201829-1\/extraordinary-circumstances\">circumstances<\/a><\/p>\n<p>Answer the questions below I adapted from the questions in ch. 2 of our textbook (each answer between 75-100 words).\u00a0 If using other sources, cite it in APA style and give full reference.<\/p>\n<p><strong>CHECK THE RUBRIC TO CLARIFY WHAT PARTS YOUR ANSWERS SHOULD COVER! <\/strong><\/p>\n<ul>\n<li>Based on your reading of \u201cThe Six Pillars of Character\u201d in chap 1 of our textbook and your viewing of Cooper\u2019s presentation, which pillar do you think would influence <strong><em>you<\/em><\/strong> the most if you were Cooper and had to decide about whether or not to investigate and later blow the whistle on WorldCom\u2019s fraud?<\/li>\n<li>Contrast the roles of Cynthia Cooper in Internal Audit and Betty Vinson in Corporate<\/li>\n<\/ul>\n<p>Reporting in response to pressure from their superiors to engage in fraud. Using Kohlberg&#8217;s Stages of Moral Development, which stages would best describe the behaviors of Cooper and Vinson? Explain.<\/p>\n<ul>\n<li>Apply the Fraud Triangle (see our textbook pp. 286-288) to this WorldCom case and use it to explain Vinson\u2019s decision to participate in the fraud.<\/li>\n<li>Using the Giving Voice to Values framework introduced in chapter 2, what steps could Vinson have taken to help resolve the growing accounting manipulations at WorldCom?<\/li>\n<li>Cooper has publicly stated that &#8220;You don&#8217;t have to be a bad person to make bad decisions.&#8221; What does she mean, in the context of WorldCom? Give examples of several people in this case who used rationalizations to justify their wrongdoing.<\/li>\n<li>Corporate financial fraud schemes such as happened with WorldCom or Enron often start with high-level executives manipulating Generally Accepted Accounting Principles (GAAP), but can quickly escalate into clearly illegal actions. As Cooper notes in her video presentation, these schemes can have severe social consequences for employees and those with pension plans linked to these corporations.\u00a0 While visiting the University of Baltimore during the Hoffberger Ethics Week event years ago, former Enron Chief Financial Officer Andrew Fastow mentioned that he thought his job title should have been \u201cChief Loophole Officer.\u201d He explained that he really saw his role as conjuring up accounting schemes that would maximize profits for Enron and still follow GAAP and other legal regulations.\u00a0 For example, he described how the pension funds of Enron employees at one point were so seriously underfunded that they were on the verge of violating regulations.\u00a0 Fastow realized that he could make the pension plans comply with regulations by simply changing the life expectancy assumptions in the actuarial models.\u00a0 Was this change of assumptions implemented by Fastow ethical and\/or legal, and what is the difference? What was the economic motivation for this change in assumptions? What were the social implications? You may refer to chapter 1 of our textbook for comparing concepts such as ethics and morals, values and ethics, ethics and laws, laws and ethical obligations (p. 8-11).<\/li>\n<\/ul>\n<p>* Mintz, M., &amp; Morris, R. (2020). <em>Ethical obligations and decision making in accounting: Text and cases<\/em>. McGraw-Hill Education.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Accounting Ethics Read case 2-10 WorldCom (textbook* p. 112-114). Watch Cynthia Cooper, former vice president of internal audit at WorldCom, speak about how she uncovered the massive fraud, why she decided to blow the whistle, and what her experience can teach us for future fraud prevention and detection: https:\/\/www.c&#8211;span.org\/video\/?201829&#8211;1\/extraordinary&#8211;circumstances Answer the questions below I adapted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-35525","post","type-post","status-publish","format-standard","hentry","category-accounting"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/35525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=35525"}],"version-history":[{"count":3,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/35525\/revisions"}],"predecessor-version":[{"id":35528,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/35525\/revisions\/35528"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=35525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=35525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=35525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}