-The tone of the initial exchange; Len sounded flippant and Marilyn sounded Angry • Were Marilyn's objectives on the way to being effectuated in the first exchange? -No, I don’t believe Marilyn’s presented her objectives in a way that allowed her to achieve the outcome she wanted; bring about effect. There wasn’t a free flow of information or desire to understand each other’s needs/objectives. • Were Len's objectives on the way to being effectuated in the first exchange? -No, Len was not doing a very effective job of bringing his objectives about during the first exchange.
The cheating management is providing fake accounts and incurring inherent internal audit risks, however, it is the external auditors’ responsibility to remain a critical and suspicious thinking over these accounts and investigate any further misrepresentations in the publicly released financial statement. The audit team should also include more auditors in their discussion of the suspicious accounts and come to an integral and practical measure to dig deeper into the target company’s financial
Bernie Madoff Scandal-The King of Ponzi Schemes This particular ethics case scrutinizes Bernie Madoff scandal in detail. This is an intriguing case that delves into how Bernie Madoff was able to conceal such large scale fraud for number of years. With this said, an appropriate problem statement for this specific case would be, “The SEC, along with number of those who had knowledge of the fraudulent activity simply swept the scandal under the rug”. Although the single largest issue concerning this case was Bernie Madoff’s blatant disregard for other in conducting the fraud, this fraud could have been detected at a much earlier stage. As the case illustrated, there were dozens of serious and valid red flags that SEC was bombarded with by efforts made from Harry Markopolos.
Part I: I believe Susan bond has two options, first is to ignore the ethical implications at Empire Globe Corporation and proceed with further negotiations with Power authority while helping Treadstone maximizing profits. And the second is to reveal the truth without becoming a sacrificial lamb (that seems to be her inherent nature, as it sprouts from her family background) for the false alarm by Treadstone about inefficiency in the Feldport operations to Feldportians. If I was in Susan’s position, at this point when I know Treadstone and James are not going to reveal truth to all the stakeholders for sure, I will file a complaint about the manipulated advancements by Treadstone to the public of Feldport and the authorities. Treadstone was playing under the law and Feldportians were willing to make any special arrangements to attract Empire globe back to the Feldport, therefore he might have been successful in his plans, however for me, taking advantage of someone while showing a miser image is ethically incorrect and has to be escalated to party adversely affected, immediately. So far, I believe Susan is on right track; in this case her personal belief about being reasonable to all the stakeholders is the foundation of her ethical beliefs.
Many times companies break accounting procedures and falsify their financial statements in order to please both internal and external users. Even though this is a violation of the SOX act of 2002, corporations still chose to engage in these activities. The final thing we learned about is the ethical decisions made behind financial reporting. The AICPA Code of Professional Conduct was put in place to make sure companies have a standard to follow when creating financial statements. Legality Financial reporting activities and standards Earnings management has been used as the manipulation of the current standard of financial reporting established by G.A.A.P.
The researchers also failed to examine their own role during analysis of data in preventing any potential bias. Although the authors claimed that the study was rigorous the authors failed to explain what was done to ensure this. Furthermore, the authors did not explain the data analysis in-depth. The authors merely explained the Anderson and Jack (1991) framework. The researchers also did not mention all information regarding credibility of findings.
* * 2. What are at least two opinions presented by each side of the critical issue? * * Cotton and Devilly stress that Critical incident stress debriefing (CISD) is not explained properly and research has proven that CISD does not give patients the results needed. * Devilly and Cotton also stated that Critical incident stress management (CISM) is also not properly explained in the treatment of traumatized individuals, which makes the process ineffective (Halgin, 2007). * Mitchell’s opinion is that Devilly and Cotton display a lack of knowledge within the text of CISM because no reference to this literature is stated by the authors.
George Keyworth was not a ethical person because he leaked confidential information and also let a investigation be opened, instead of being honest. CEO Dunn showed an ethical attitude and was forced to resign by board members, which describes the other board members to be unethical also. 2. Who are the stakeholders impacted by this situation? How would you rank their claims? Everyone related to this company is affected by this situation.
I also think that the internal audit department should have had full access to the accounting system. Because the internal auditors did not have full access to the system, detection of fraudulent practices couldn't be readily and immediately determined. In addition to this, the internal audit department reported to the CFO, thus the CFO had the
Ethicality of Accounting Activities While reading Cynthia Cooper’s account of what led to the WorldCom case our team discovered that it was not one person’s fault. Accounting issues may begin from the top, but it takes the rest of the accounting team to continue to contribute to the fraud. Our team learned that because the CFO, Scott Sullivan, of WorldCom created a prepaid capacity account that seemed viable within the capital expenditures to the rest of the employees it led to a scandal within the company. This scandal involved many people from Cynthia Cooper and Glyn Smith, the determined internal auditors, to Betty Vinson and Troy Normand, members of the accounting department staff (Mintz & Morris, 2011). One of the key members of this case is Scott Sullivan the Chief Financial Officer of WorldCom.