In-class lectures and/or on-line
1. Introduction to the ethical, moral and legal problem of fraudulent Financial Reporting.
2. Making ethical decisions in the business world; study of major philosophical frameworks for analyzing ethical dilemmas, as well as the most frequent “false exits”.
3. Improper recording of contingent sales and other unethical organizational behaviours.
4. Moral and ethical dilemmas facing Accounting professionals invoved in holding books open after end of period, entering in multiple element contracts, recording fictitious revenue, improper Valuation of Revenue, submitting misleading Cash Flow Statements, and other professional unethical conduct including employee and employer conflicts.
5. Improper use of Business Combinations and capitalization of expenses.
6. Immoral and unethical professional decisions such as those relating to deferral of expenses, failure to record expenses, overstating ending inventory, understating reserves for bad debts, failure to record asset impairments, and off-Balance Sheet arrangements.
7. Inadequate Disclosure in MD&A and related party transactions.
8. Unethical leadership as demonstrated during the Mortgage Crisis.
9. Signals that may indicate possible fictitious reporting in financial statements.
- Analyze the ethical decision making process adopted by various international organizations, including International Accounting Standards Board
- Demonstrate an understanding of the most frequent fraudulent business practices and GAAP departures in reporting used to: overstate revenue, understate expenses, in business combinations to overstate earnings, overstate assets and reserves.
- Identify and analyze use of special purpose entities and round-trip transactions to falsify financial reporting
- Analyze the importance of institutional and environmental influences, and how they can assist Accounting professionals and other citizens develop the ethical and moral values in their careers and their role as leaders.
Assignments and Case studies 30%
Final Exam 35%
Detecting Accounting Fraud: Analysis and Ethics. Cecil W. Jackson. Pearson/Prentice Hall
Current copy of the CPA Code of Professional Conduct
And/or other textbook and materials approved by the department