Unfortunately, there is no shortage of examples of unethical situations and ethics violations within corporations. Some cases produce wide$-$ranging and devastating effects on all parties involved. Whether it is reduced investor confidence, reductions in a company's  credit rating, or even bankruptcy, these situations are important to analyze in order to determine effective strategy for avoiding ethical obstacles in the future.

You are encouraged to put yourself in the place of both the involved employees as well as the stakeholders. You are encouraged to select a significant case that is personally interesting and$/$or relevant to you professionally.

This assessment will evaluate your mastery with respect to the following course outcomes:

Analyze legal, social, and economic developments for their defining role in ethical expectations of the business and accounting profession

Assess the ethical responsibilities of professional accountants to internal and external stakeholders relating to the financial reporting process

Apply theoretical models of ethical behavior to contemporary accounting issues

Evaluate emerging technologies, regulatory activities, and international accounting standard setting for their impact on the ethical behavior of accounting professionals

Develop an ethical framework for setting appropriate standards of conduct for stakeholders in the accounting process

Prompt

Your case study should answer the following prompt: What ethical framework should be utilized when setting appropriate standards of conduct for professional accountants in order to promote ethical values and decision making?

Specifically, the following critical elements must be addressed:

Background

What company is the subject of the case? Why did you choose this company$/$ethical situation? What ethics violations were discovered?

Ethical Violations

Who were the main participants involved in perpetrating the violations? Discuss the ethical responsibilities of professional accountants to the following stakeholders regarding the financial reporting process. How were the stakeholders affected by the ethics violations?

Internal

External

What AICPA Codes of Professional Conduct were violated?

What is the importance of independence, when is independence required, and why must you be independent both in fact and in appearance?

Did the main participants adhere to moral and ethical principles? Soundness of moral character? Honesty? In other words, discuss the case as it relates to the integrity of the main participants.

Did the main stakeholders, including the professional accountants, maintain their objectivity? Explain.

What were the implications of these violations on the business and accounting profession from the following perspectives?

Legal

Social

Economic

Does the company have a specific code of ethics? Were any of the components of the code violated? Discuss.