Read Nathan Johnsons Rental Car Reimbursement, WorldCom, and Hollinger International

Answer the following questions.

How might the confirmation tendency affect Nathan's decision and what could he do to mitigate the possible effects of this tendency in order to improve his professional judgment?

At the time Cynthia Cooper discovered the accounting fraud, WorldCom did not have a whistleblower hotline process in place. Instead, Cynthia took on significant risks when she stepped over Scott Sullivans head and notified the audit committee chairman of her findings. Conduct an Internet search to locate a copy of the SarbanesOxley Act of 2002. Summarize the requirements of Section 301.4 of the Act.

Provide a brief overview of the accounting standards definition of related party transactions

Decision making is a critical skill for todays manager. In your opinion, what factors impacted Dianns decision to commit fraud? If you were Diann, how would you have responded? 2. If you were the management accountant employed at Dianns company and noticed irregularities, what would you do? In your response, please consider the roles and responsibilities of the management accountant.

Instructions:

The assignments are meant to challenge your critical thinking, problem solving and knowledge on audit rule(s)/standard(s) in the context of specific problems facing the (internal and external) auditing industry. Students are expected to provide primary accounting/auditing issues of each case and relate them into the guidance of audit standards/rules, and demonstrate individual decisions/stances for each specific situation. You may need to search from supplemental readings to better understand the related professional/audit standards. In order to receive full credit, the submission should be completed on at least one-page Microsoft word file, single space, times new roman font, and size 12.

Supplemental Reading

PCAOB Standards and Related Rules. Information may be found at www.sec.gov, www.aicpa.org,

www.pcaobus.org,

www.coso.org,

www.cpaboard.state.la.us,

www.tsbpa.state.tx.us,

www.isaca.org, etc.