ACT560: Accounting Ethics

Transcription

1 ACT560: Accounting Ethics Credit Hours: 3 Contact Hours: This is a 3-credit course, offered in accelerated format. This means that 16 weeks of material is covered in 8 weeks. The exact number of hours per week that you can expect to spend on each course will vary based upon the weekly coursework, as well as your study style and preferences. You should plan to spend hours per week in each course reading material, interacting on the discussion boards, writing papers, completing projects, and doing research. Course Description and Outcomes Course Description: The professional issues surrounding ethics and standards in the field of accounting are extensive and of heightened import considering the high-profile financial scandals of recent years. These scandals in large part involved some degree of fraudulent accounting, eroding trust in the profession. Beyond that, these events had tremendous negative impact on the economic health of the U.S. and the world. In this course, students will study and discuss issues of professional integrity and ethical reasoning, objectivity, independence, and how these elements are matched to real-world situations. Extensive use of case studies allows students to apply their understanding to realistic scenarios. Accounting within the context of corporate management, the AICPA s Code of Professional Conduct, legal liabilities, the nature and the temptation of fraud, financial reporting, and international accounting issues are all examined. Course Overview: The professional issues surrounding ethics and standards in the field of accounting are extensive and of heightened import in light of the high-profile financial scandals of recent years. These scandals in large part involved some degree of fraudulent accounting, eroding trust in the profession. Beyond that, these events had tremendous negative impact on the economic health of the U.S. and the world. In this course, students will study and discuss issues of professional integrity and ethical reasoning, objectivity, and independence, and how these elements are matched to real-world situations. Extensive use of case studies allows students to apply their understanding to realistic scenarios. Accounting within the context of corporate management, the AICPA s Code of Professional Conduct, legal liabilities, the nature and the temptation of fraud, financial reporting, and international accounting issues are all examined. Course Learning Outcomes: 1. Discuss how to respond to ethical business dilemmas in various business situations. 2. Explain moral obligations to the accounting profession and employer. 3. Develop a set of core values to apply to organizational decision making. 4. Demonstrate how to manage social and professional relationships when independence is compromised. Participation & Attendance

2 Prompt and consistent attendance in your online courses is essential for your success at CSU-Global Campus. Failure to verify your attendance within the first 7 days of this course may result in your withdrawal. If for some reason you would like to drop a course, please contact your advisor. Online classes have deadlines, assignments, and participation requirements just like on-campus classes. Budget your time carefully and keep an open line of communication with your instructor. If you are having technical problems, problems with your assignments, or other problems that are impeding your progress, let your instructor know as soon as possible. Course Materials Textbook Information is located in the CSU-Global Booklist on the Student Portal. Course Schedule Due Dates The Academic Week at CSU-Global begins on Monday and ends the following Sunday. Discussion Boards: The original post must be completed by Thursday at 11:59 p.m. MT and Peer Responses posted by Sunday 11:59 p.m. MT. Late posts may not be awarded points. Critical Thinking: Assignments are due Sunday at 11:59 p.m. MT. Live Classroom: Although participation is not required, Live Classroom sessions are held during Weeks 1, 3, 5, and 7. There are four total sessions. Week # Readings Assignments 1 2 Chapters 1 and 2 in Ethics in Accounting: A Decision- Making Approach Larkin, M. B., Bernardi, R. A., & Bosco, S. M. (2013). Does female representation on boards of directors associate with increased transparency and ethical behavior? Accounting & the Public Interest, 13(1), Bobek, D. D., Dalton, D. W., Daugherty, B. E., Hageman, A. M., & Radtke, R. R. (2017). An investigation of ethical environments of CPAs: public accounting versus industry. Behavioral Research in Accounting, 29(1), Chapters 3, 4, and 5 in Ethics in Accounting: A Decision-Making Approach Hurley, P. (2017). Why consequentialism's "compelling idea" is not. Social Theory & Practice, 43(1), 29. Critical Thinking (75 points) Live Classroom (0 points) Critical Thinking (75 points)

3 Timmermann, J. (2015). V-what's wrong with 'deontology'? Proceedings of the Aristotelian Society (Paperback), 115(1pt1), Chapter 6 in Ethics in Accounting: A Decision-Making Approach Hough, C., Green, K., & Plumlee, G. (2015). Impact of ethics environment and organizational trust on employee engagement. Journal of Legal, Ethical & Regulatory Issues, 18(3), Review Chapters 1-6 in Ethics in Accounting: A Decision-Making Approach Rigos, J. J. (2015). The AICPA's new ethics code. CPA Journal, 85(2), 64. Allen, C., & Snyder, L. (2017). AICPA proposal raises the ethical bar. CPA Journal, 87(3), 50. Chapters 7 and 8 in Ethics in Accounting: A Decision- Making Approach Kassem, R., & Higson, A. W. (2016). External auditors and corporate corruption: Implications for external audit regulators. Current Issues in Auditing, 10(1), P1- P10. Albrecht, C., Holland, D., Malagueño, R., Dolan, S., & Tzafrir, S. (2015). The role of power in financial statement fraud schemes. Journal of Business Ethics, 131(4), Kulikova, L. I., & Satdarova, D. R. (2016). Internal control and compliance-control as effective methods of management, detection, and prevention of financial statement fraud. Academy of Strategic Management Journal, 15, Chapters 9, 10, and 11 in Ethics in Accounting: A Decision-Making Approach Guénin-Paracini, H., Malsch, B., & Tremblay, M. (2015). On the operational reality of auditors' independence: Lessons from the field. Auditing: A Journal of Practice & Theory, 34(2), Kaya, H. D., & Banerjee, G. (2015). The short-term and long-term impacts of Sarbanes-Oxley Act on independence and compensation of corporate board of directors. Journal of Global Business Issues, 9(1), 1-9. Roy, M. N., & Saha, S. S. (2016). Relationship of statutory auditors' competence and independence with audit quality. Vilakshan: The XIMB Journal of Management, 13(1), Critical Thinking (75 points) Live Classroom (0 points) Critical Thinking (75 points) Critical Thinking (75 points) Live Classroom (0 points) Critical Thinking (75 points) 7 Chapters 12, 13, and 14 in Ethics in Accounting: A Decision-Making Approach Live Classroom (0 points)

4 8 Hegazy, M., Al Sabagh, A., & Hamdy, R. (2015). The effect of audit firm specialization on earnings management and quality of audit work. Journal of Accounting & Finance ( ), 15(4), Qiang, C., Jimmy, L., & Shevlin, T. (2016). Internal governance and real earnings management. Accounting Review, 91(4), Review assigned chapters in Ethics in Accounting: A Decision-Making Approach Evans, M. E., Houston, R. W., Peters, M. F., & Pratt, J. H. (2015). Reporting regulatory environments and earnings management: U.S. and non-u.s. firms using U.S. GAAP or IFRS. Accounting Review, 90(5), Lopes, A. B., Walker, M., & da Silva, R. M. (2016). The determinants of firm-specific corporate governance arrangements, IFRS adoption, and the informativeness of accounting reports: Evidence from Brazil. Journal of International Accounting Research, 15(2), Portfolio (350 points) Assignment Details This course includes the following assignments/projects: Module 1 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Understanding Kohlberg s Stages of Moral Development Please read the case study and answer the questions that follow. Case study: Public Practice Nobody Follows the Rule: Every accounting firm has its approach to ethical situations with clients and employees. Dave Gordon, FCA, Senior Partner, is to advise the incumbent auditor on the financial situation at a client. He has been noticing that many of the other partners in his firm are not following the rules with respect to transitioning to a new client. Evaluate the case study to access the ethical reasoning using Kohlberg s stages of moral development from Dave Gordon s point of view. Include in your evaluation: 1. What should Dave suggest to his fellow partners in the firm and why? 2. How can Dave make a decision using Kohlberg s stages of moral development? 3. Could Dave see the moral justification of others in their decision to alter or not follow the rules? 4. Can Dave justify the loss of business as a right decision in view of firm goals? Use terms, evidence, and concepts from class readings, including professional business language.

5 Review the Module 1 Critical Thinking rubric for full details on how you will be graded on this assignment. Option #2: Reflecting on Ethics Read the article by Bobek, Dalton, Daugherty, Hageman, & Radtke (2017), An Investigation of Ethical Environments of CPAs: Public Accounting versus Industry. 1. Describe and evaluate the article in view of small and large accounting audit environments. 2. Discuss the research questions in the paper. 3. Elaborate on the method of the research quantitative or qualitative? 4. What were the conclusions of the research? 5. What were the limitations of the research? 6. Was the conclusion in line with ethical absolutism and relativism theory? Why or why not? Use terms, evidence, and concepts from class readings, including professional business language. Review the Module 1 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 2 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Deontological Study Please read the case study and answer the questions that follow. Xu, Z., & Ma, H. (2016). How can a deontological decision lead to moral behavior? The moderating role of moral identity. Journal of Business Ethics, 137(3), doi: /s Review and provide a written summary of the paper completing the following requirements: 1. What effect did duty to moral obligation have on moral behavior? 2. How were deontology actions defined? 3. What were the research questions? 4. What was the demographics of the sample? 5. What was the methodology? 6. What were the results? 7. What were the limitations of the study? 8. Was the conclusion logical? Use terms, evidence, and concepts from class readings, including professional business language.

6 Review the Module 2 Critical Thinking rubric for full details on how you will be graded on this assignment. Option #2: Exploring Cognitive Processes Please read the case study and answer the questions that follow. The Ethical Dilemma at Northlake: Using utilitarianism and deontology ethical theories, 1. What might be the moral decision framework that Frank could have used? 2. What might be the conclusions based on deontology theory with Frank s decision. 3. Can you think of another ethical theory that might apply? Why? 4. With Jean Letourneau, what ethical reasoning could he apply and why? Review the Module 2 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 3 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Case Study: Atlas Cold Storage Please read the case study and answer the questions that follow. Case Study: Atlas Cold Storage Inc.: Cheating occurs at many levels within a firm. In the case study, the president engaged in several questionable activities with the company s financial statements. 1. With Ernst & Young LLP's ("E&Y"), what might have been the ethical decision that they faced with the client? 2. What was Andrew Peters, VP and CFO, ethical justification to go along with the president? 3. What could J. Nicholas Ross, Chairman, have done to foster and create an ethical environment? 4. What might be the cheating signal in the company that would make deontology ethical theory effective? 5. What might be the duty to the bank, creditors, and the client by E&Y, the auditor? 6. What conclusion and results was the leadership of Atlas Cold storage expecting with all the financial schemes?

7 Review the Module 3 Critical Thinking rubric for full details on how you will be graded on this assignment. Option #2: Exploring Ethics in the Workplace After reading the Hough, Green & Plumlee (2015) paper (from this week s required readings), 1. Discuss how the company you work for (or if you are not currently employed, use a past employer) addresses ethical issues. 2. Does the company have a formal code of ethics? 3. Are employees assessed based on their ethical behavior? 4. How does trust impact the ethical environment in your firm? 5. Further, how does the firm handle violations in ethical behavior? Review the Module 3 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 4 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Case Study: A Small Matter of Trimming Please read the case study and answer the questions that follow. Case Study: A Small Matter of Trimming Cheating occurs in different forms. In the case study, Tracy and Denise need to provide a recommendation on a stocking fee for large and small Breweries. 1. What was Denise s and Tracey s ethical justification to go along with the stocking fee? 2. What could have fixed the data done to foster and create an ethical environment? 3. What might be the cheating signal in the company that would make deontology or utilitarianism ethical theories affective? 4. What might be the duty to the client that Denise and Tracy have? Review the Module 4 Critical Thinking rubric for full details on how you will be graded on this assignment.

8 Option #2: Case Study: Rusty and Dusty Slow Movers Please read the case study and answer the questions that follow. Case Study: Rusty and Dusty Slow Movers After reading the case study, Rusty and Dusty Slow Movers, Art has asked Penny to perform several questionable accounting steps. 1. From the perspective of Penny, what might be the ethical decision-making process that she could undertake? 2. Discuss the ethical theory that Penny could apply to the situation. 3. Describe how consequentialism (egosim) and virtue ethical theories could create a different view of the situation from the president s point of view. 4. What might Penny do for the next step in her career at the company? 5. Can one be ethical in an unethical environment? 6. If you were in Penny s position, could you instill an ethical culture with upper management? Review the Module 4 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 5 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Case Study: Nortel Networks Corporation Please read the case study and answer the questions that follow. Case Study: Nortel Networks Corporation Every firm that has had ethical lapses had them centered on several areas of stress: Tone at the top that conveyed a message that earnings targets had to be met through whatever practices were necessary, and that it was not acceptable to question the practices; weak or ineffective internal controls; and, a complex corporate structure which contributed to a lack of clear responsibility and accountability. Using either consequentialism or deontology, review the background, accounting management at Nortel and prepare the following. 1. What effect, if any, did upper management messages have on the decision to have ethical lapses? 2. What might have been the ethical justification creating fraudulent accounting entries in view of internal controls? 3. What might the board of directors have done to foster and create an ethical environment? 4. What might be the benefits and costs sought by top management? What might be the results and consequences of fraudulent accounting statements, breaking the law, and lack of integrity by top management?

9 Review the Module 5 Critical Thinking rubric for full details on how you will be graded on this assignment. Option #2: Peer-reviewed Paper Please read the case study and answer the questions that follow. Kassem, R., & Higson, A. W. (2016). External auditors and corporate corruption: implications for external audit regulators. Current Issues in Auditing, 10(1), P1-P10. doi: /ciia Discuss how the paper described the role of external auditors in relation to corporation corruption. 2. Elaborate on the responsibilities of external auditors in relation to corporate corruption. 3. Does the paper support any specific ethical approach to mitigate corporate corruption? 4. Discuss the recommendations and conclusions in relation to ethical theories discussed in the course. Review the Module 5 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 6 CRITICAL THINKING ASSIGNMENT (75 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Case Study: Hollinger International, Inc. Please read the case study and answer the questions that follow. Case Study: Hollinger International Conrad Moffat Black, the owner, was a colorful individual. He owned many publishing companies, including the Chicago Tribune. He had no problem in cutting corners to get what he wanted. Many of the board members of the firm were close associates of Mr. Black s. 1. How did upper management set into motion an unethical environment? 2. What might be the ethical theory that could explain Mr. Black s character and behavior? Why? 3. Could a standard of duty operate within a Black-owned company? 4. What ethical theory could the board of directors engage or apply in the oversight of Mr. Black? 5. What might be your actions if you worked for a firm owned by Mr. Black? Based on what ethical theory, and why? Review the Module 6 Critical Thinking rubric for full details on how you will be graded on this assignment. Option #2: Auditor Competence

10 Please read the article and answer the questions that follow. Roy, M. N., & Saha, S. S. (2016). Relationship of statutory auditors' competence and independence with audit quality. Vilakshan: The XIMB Journal of Management, 13(1), Describe and evaluate the article in view of auditor competence and independence. 2. Discuss the research questions in the paper. Elaborate on the method of the research quantitative or qualitative? 3. What were the conclusions of the research? What were the limitations of the research? 4. In your view, did the paper support consequentialism, deontology or virtue ethical theories? Why? 5. How can the ethical theory selected be applied at your firm? You need to cite at least five sources for this assignment, outside of the textbook. The CSU-Global Library is a great Review the Module 6 Critical Thinking rubric for full details on how you will be graded on this assignment. Module 8 PORTFOLIO PROJECT (350 points) Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission. Option #1: Case Study Outline of the Case You graduated from CSU-Global with a Master of Professional Accounting degree. You earned your CPA credential from the state of Louisiana; you applied and were accepted by the AICPA. After working in the field for years, you are now a qualified auditor and you recently joined Skitch, Maryland, and Anderson Accounting Firm (SM&A). Review the case study, and then answer the questions that follow. Case Study: Louisiana Gas Production and Operating Company (LGO) This year, Louisiana Gas Production and Operating Company was preparing for the end of year audit plan, procedures and opinion for the annual 10K report. SM&A was selected as the public audit firm to prepare the annual audit plan, assessment, audit procedures and opinion. LGO is trading on NASDAQ for $9.00 per share. Two years ago, LGO had a $25.00 per share value. LGO has a market float value of $100 million. The main stockholders are pension funds, state retirement funds, hedge funds in the oil sector, and thousands of individual stockholders. Last year, LGO had earnings per share (EPS) of $2.00 and paid cash dividend of $1.50 per share. The company has been under tremendous pressure to raise the stock price. However, the oil and gas marketplace has been very difficult, with West Texas Intermediate (WTI) at $47.00 per barrel, and the natural gas well price at $3.05 cubic foot at Henry Hub in Louisiana. Henry Hub has nine major gas pipelines converging to supply gas at the location in Louisiana. Most of this natural gas product is shipped by LGN to the North East. LGO mostly has gas wells in the Haynesville Shale play area of Louisiana. Background of LGO top Leadership The Chairman of the Board is Alexander Fred, 65 years old. He has been with the company for 40 years and was part of original group of individuals that started the company. The CEO is Patrick Fred, 42, the son of the Chairman. The family owns 36% of all common stocks and 90% of preferred Stock A. The CFO, Melinda Jones, 38, is a CPA who has been with the company since she was 22 years. Ms. Jones worked her way up through the organization. She is well liked by Mr. Alexander Fred. Ms. Jones is a member of the AICPA and the State of Louisiana CPA organization. The VP of Production is Roger Rock, 44 years old. He is a petroleum production person, has oil is in his veins. He received his Petroleum Engineering Degree from Texas A &M. He has been with the company just one year. Prior to joining LGO, he worked at Chevron for over 20 years. The Treasurer is Mrs. Hanna Hemp, 36 years. She joined the firm just six months ago. She worked for a hedge fund in Boston area for 15 years, and is now considered a team player by Mr. Alexander Fred.

11 Audit Subcommittee from the Board of Directors Audit committee: Mr. James Fernandez, 63, is a university associate of Mr. Alexander Fred, and has a CPA from Northern Louisiana Tech. James and Alexander were roommates in their university days. He is on the BOD. Audit committee: Mr. Bill Fideo, 27, is the financial expert on committee. Just joined the board less than six months ago. He has never been a member of the board of director (BOD) or been on the audit committee with any company. He is currently on the BOD. He earned his CPA from North Louisiana Tech. Public Audit Firm: Skitch, Maryland, & Anderson Office Location: New Orleans, Louisiana. The Partner in Charge is Mrs. Loise Maryland, who has 25 years of experience in the oil and gas industry. The Accounting Audit Supervisor assigned to LGO is Mrs. Sarah Diamond. She has audit experience with 15 years in the petroleum marketplace. The audit accountants assigned to the client, LGO, are Ms. Lisa Lang, with two years of experience; Mr. Andy Anderson, 18 months of experience; and Mr. Arnold Hernandez, one year of experience. SM&A won the bid process to perform the audit of LGO. This bid was extremely competitive between five firms. The partners with the public accounting firm are hoping to have LGO for the next five years. The public accounting firm has been losing customers to regional accounting firms in the last three years. Mrs. Loise Maryland lives in a 5,000-sq. foot home on County Hill Country Club. Her husband loves to play golf. He does not have employment with any firm. Mrs. Sarah Diamond loves working for Mrs. Loise Maryland. She would do anything for her. They are extremely close. Situation This year s audit plan started well, with cooperation between management and the audit firm. However, during the first quarter review, revenue numbers appeared to be higher with the vertical and horizontal analytics on previous quarters and the annual financial statement. The audit team meet to discuss the impact but could not find any negative or accounting entries earnings management numbers. Mrs. Maryland and Mrs. Diamond requested a meeting with Mrs. Melinda Jones, CFO. In the meeting, Mrs. Jones informed the audit team that everything was fine. They had booked some good sales in the quarter. LGO Management Behind the Scene Sales have been flat for this year compared to last year. Natural gas well prices are looking downward at Henry Hub. The average revenue gas well per cubic feet price in last year was $3.50. In this year, Henry Hub gas well price is around $3.05. Gas volume is only 5% higher. In a recent, closed meeting, Patrick Fred and Alexander Fred suggest to Mrs. Jones to be creative and aggressive in booking revenue. In this meeting, no record was kept of the conversation. Mrs. Jones said she knew what to do. Mr. Alexander Fred said the benefit of having revenue being positive would create a positive environment for the LGO stock versus other companies of similar size in the marketplace. In the meeting, Mrs. Jones said nothing about the integrity or duty to stockholders. She simply kept quiet on the issue. Questions 1. What might be the professional skepticism in the situation at LGO business environment? 2. How would you evaluate the LGO top management under the fraud triangle? 3. How would you evaluate the leadership of SM&A? 4. How would virtue ethics come into play with SM&A s upper management? 5. What might be the deontology ethical theories and situation with respect to your role at SM&A? 6. What might be the duty to perform to stockholders, creditors, employees, and government by upper leadership at LGO? 7. What might be the consequentialism the ethical theory expressed and practiced by Patrick and Alexander Field? 8. What could be the quantitative and qualitative benefits and costs for Mrs. Melinda Jones to follow the request? 9. What might be the criminal and punitive damages under SOX to upper management if they certify this year s financial statements? 10. What might be the ethical, moral decision-making process to agree or disagree with SM&A in your work at LGO? 11. How would you handle the many ethical issues with the audit firm and the client? Your written paper should be 8-10 pages in length not counting the title and reference pages, which you must include. Integrate concepts, terms, and theories from the readings and modules contents.

12 You need to cite at least five sources for this portfolio project, outside of the textbook. Four of these sources must come from academic journals. The CSU-Global Library is a great If you need assistance with your writing style, start with the links under the Research Help and Writing Help tabs on the CSU- Global Library s homepage. Review the Portfolio Project rubric in Module 8 for full details on how you will be graded on this assignment. Option #2: Development of an Ethics Foundation: A Case Study-HighTech, Inc. Identify the issues, define your ethical decision-making model and ethical theory, explain the options and consequences, and pick the solution you would choose, and why, for the following situation: Sally, controller and CPA, has been working hard to finish the year-end financial statements for HighTech, Inc. HighTech, Inc. provides social media relationships between users by focusing on up-to-the-minute communications on events kind of like Instagram. This year is a critical year for the firm. The company is expected to make a profit after five years of product development and losses. In working to complete the year-end financials, Sally finds out that the figures are not logical. In fact, it seems that the company has overstated assets and income by $300 million. Based upon the short investigation that she has been able to complete, it seems that both the CEO and CFO have signed and approved some documents that have inflated the numbers. The documents indicate a realization and recording of the social media customer valuation of future sales into the present accounting period. Every social media customer for the firm generates advertising revenue equal to $5.00 per year. The documents indicate that the social media customer revenue for the year was increased to $7.00 per customer. The incremental revenue was booked on December 30. This lead to an increase in revenue of $300 million and accrual Long Term Account Receivable of $300 million. Sally is pressured by time (a filing deadline is tomorrow, to get the financial information finalized and printed for the shareholders meeting) and the following other considerations: The shareholders have been promised that an Initial Public Offering (IPO) of the company will be done within the next year. The original founders of the firm are looking at the coming year to issue the IPO. Morgan Stanley has been hired to provide the financial advice on the IPO issuance. The benefits to the stockholders are in the millions. Sally is a go-getter; she wants to succeed in the company. She sees herself as a CFO in the future. Sally has been with the company for five years. She was one of the first employees hired. She has had excellent annual performance reviews. Upper management sees Sally as part of the team. Sally is a CPA. She has joined the state CPA organization and the AICPA organization. She has viewed and passed the AICPA Code of Professional Conduct Certification. Sally has personal pressures since she recently bought a new $500,000 house using all her savings as a down payment, $100,000. Further, her husband recently has taken an unpaid leave from his job due to a difficult illness and medical bills are mounting. He fell at work and needed serious back surgery. He needs special nursing care during the day. Sally helps at night as much as she can. The banks have been patient in providing lending during the rough times but will declare the loans in default and demand immediate repayment if the numbers are not near breakeven. Answer the following questions: 1. Based on the above given information, what should Sally do? 2. What might be the duty of professional responsibility as a CPA and member of the AICPA? 3. What might Sally s responsibility to herself be to provide the highest work with integrity, honesty, trustworthy, and transparency? 4. Does Sally have a responsibility to her firm to follow the directions of the president? If yes or no, provide rationale. 5. What standard of rules might help Sally to complete the assignment? 6. What might be the consequences if Sally completes the financial statements within the timeframe and breakeven? Your written paper should be 8-10 pages in length not counting the title and reference pages, which you must include. Integrate concepts, terms, and theories from the readings and modules contents. You need to cite at least five sources for this portfolio project, outside of the textbook. Four of these sources must come from academic journals. The CSU-Global Library is a great

13 If you need assistance with your writing style, start with the links under the Research Help and Writing Help tabs on the CSU- Global Library s homepage. Review the Portfolio Project rubric in Module 8 for full details on how you will be graded on this assignment. Course Policies Course Grading Grading Scale and Policies A % Discussion Participation A % Critical Thinking Assignments 35% Final Portfolio Project B % Live Classroom B B C C D F 59.9 or below In-Classroom Policies For information on late work and incomplete grade policies, please refer to our In-Classroom Student Policies and Guidelines or the Academic Catalog for comprehensive documentation of CSU-Global institutional policies. Academic Integrity Students must assume responsibility for maintaining honesty in all work submitted for credit and in any other work designated by the instructor of the course. Academic dishonesty includes cheating, fabrication, facilitating academic dishonesty, plagiarism, reusing /re-purposing your own work (see CSU-Global Guide to Writing and APA Requirements for percentage of repurposed work that can be used in an assignment), unauthorized possession of academic materials, and unauthorized collaboration. The CSU-Global Library provides information on how students can avoid plagiarism by understanding what it is and how to use the Library and Internet resources. Citing Sources with APA Style All students are expected to follow the CSU-Global Guide to Writing and APA Requirements when citing in APA (based on the APA Style Manual, 6th edition) for all assignments. For details on CSU-Global APA style, please review the APA resources within the CSU-Global Library under the APA Guide & Resources link. A link to this document should also be provided within most assignment descriptions in your course. Disability Services Statement CSU Global is committed to providing reasonable accommodations for all persons with disabilities. Any student with a documented disability requesting academic accommodations should contact the Disability Resource Coordinator at and/or ada@csuglobal.edu for additional information to coordinate reasonable accommodations for students with documented disabilities. Netiquette Respect the diversity of opinions among the instructor and classmates and engage with them in a courteous, respectful, and professional manner. All posts and classroom communication must be conducted in accordance

14 with the student code of conduct. Think before you push the Send button. Did you say just what you meant? How will the person on the other end read the words? Maintain an environment free of harassment, stalking, threats, abuse, insults or humiliation toward the instructor and classmates. This includes, but is not limited to, demeaning written or oral comments of an ethnic, religious, age, disability, sexist (or sexual orientation), or racist nature; and the unwanted sexual advances or intimidations by , or on discussion boards and other postings within or connected to the online classroom. If you have concerns about something that has been said, please let your instructor know.