Version 01 January 18, 2016
THE OHIO STATE UNIVERSITY
Max M. Fisher College of Business
Ethical Challenges in Accounting and Business
Application of Ethical Judgment in the Financial World
--- Winter 2015
Course # AMIS 7010 -- March 2 – April 25, 2016 -- M-W 10:15- 11:45 -- 1.5 Credit Hours
INSTRUCTOR INFORMATION
Instructor:
Jerry L. Esselstein, CPA
Office:
N/A
Office Phone: Cell -- 614.306.5555
Emergency only _______________ Dept. of Accounting and MIS)
Office Hours: By appointment
E-mail:
Preferred email -- jerry@esselstein.com (esselstein.11@osu.edu)
CLASS INFORMATION
M-W 10:15 -11:45 Room _____ ____
CONTENT/RESOURCES: Periodicals, Current News, Selected Readings (to be furnished
or accessible online)
COURSE OBJECTIVES AND APPROACH

Evaluate the impact and influence of “Cultural Shifts in Defining what is Ethical” on
acceptable behaviors and changing business practices, and Professional Standards and
Responsibilities

Apply Ethical Principles in a Changing and Competitive Business Environment while…
…allowing for effective personal and organization growth and development
…ensuring efficiency and effectiveness of Policies and Procedures
…adding value in determining strategic priorities and decision making
…taking leadership positions and setting limits --- validating “talk” with behavior
PREPARATION & ASSIGNMENTS
Participation is essential. Weekly reading assignments will be discussed in an open forum
Point Counterpoint Team assignment: Twelve – 2 member teams --- Teams have two
Opinion Papers due (not five)
Individual homework assignments
A.
Discussion -- Business and Accounting Ethics in the Media ---- 0-15 min each session
 Class Participation
B.
“Opinion Paper” due weekly – 5 Total – Max 1,000 words each
 Schedule of Topics Provided
 Reading assignments by topic -- Class Participation
 Point Counterpoint Team members – two Opinion Papers due
 Bonus: Additional Opinion Paper (6 total or 3 total for Point Counter Point teams)
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“Opinion Paper” grading: Opinion Papers must be submitted at the beginning of class on
the due date shown on the schedule distributed the first day of class. Opinion Papers will be
graded using satisfactory (S), and unsatisfactory (U). Guidelines and associated points are:
Category
Satisfactory
Unsatisfactory
Not submitted
FINAL – Take Home
Description
Issue defined, complete in presentation &
depth --- PAPERS ARE NOT RETURNED
Incomplete – PAPER WILL BE RETURNED
Not submitted or no effort shown
Date/Time
Due April 27
Coverage
5 to 10 short essays
Points for
Opinion Paper
20-30
1-19
0
Point Value
100
Failure to complete the final results in a score of zero. Exceptions will be made upon
presentation of documented evidence indicating serious illness, family emergency, or
University-authorized absence. Contacting me with my acknowledgment prior to the Final is
expected.
GRADING: NON Point Counterpoint Presentation Participants
Components that determine the course grade:
Individual Opinion Papers (5 required)
Final Examination
Total Point Base net of Bonus Points & Reductions
150 Points
100 Points
250 Points
Potential Bonus Points and Point Reductions
Perfect attendance
Opinion Paper # 6 (Five required)
Exceptional Class Participation: Up to 50 points – discretionary
Total Possible Bonus Points
60 Bonus points
30
50
140
Lack of Class Participation – discretionary – reduction up to
Unexcused missed class
Total Possible Reductions
(50) Point Reductions
(20)
(70)
GRADING: Point Counterpoint Participants (24 Students – 12 Two Member Teams)
Components that will determine the course grade are:
Individual Opinion Paper - Two Required
60 Points
Team Presentation -- Up to 90 each participant
90 Points
Final Examination
100 Points
Total Point Base net of Bonus Points & Reductions
250 Points
Potential Bonus Points and Point Reductions
Perfect attendance
Opinion Paper 3 (Two are required)
Exceptional Class Participation: Up to 50 points – discretionary
Total Possible Bonus Points
Lack of Class Participation – discretionary – reduction up to
Unexcused missed-class
Total Possible Reductions
60 Bonus points
30
50
140
(50) Point Reductions
(20)
(70)
Grading Point Counterpoint team assignments: In general, each member of the team will
receive the same grade for team assignments. However, when one or more members of a
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team “ride free” on the work of other members, the team scores of free riders may be
substantially reduced if consistent evidence of free riding is found. To discover free riding, each
member of a team may submit an individual Team Evaluation Form any time during the course
term. If someone does not submit a Team Evaluation Form, I will assume no free riding
problems existed.
Grade Distribution: Grades will be determined based on the overall points earned:
Grade
A
> 230 points
B
> 200
C
> 190
D
> 175
F
Under 175
STUDENTS WITH DISABILITIES:
Any student who feels s/he may need an accommodation based on the impact of a disability
should contact me privately to discuss your specific needs. Please contact the Office for
Disability Services at (614) 292-3307 in Pomerene Hall Room 150 to coordinate reasonable
accommodations for students with documented disabilities. Also, see www.ods.ohio-state.edu
for more information about the Office for Disability Services.
STANDARDS OF INTEGRITY AND CONDUCT:
Each student is expected to be familiar with and abide by the principles and standards set forth
in The Ohio State University’s Code of Student Conduct and Code of Academic Conduct. View
these documents or download pdf versions:
http://studentaffairs.osu.edu/resource_csc.asp and
http://www.gradsch.osu.edu/Content.aspx?Content=10&itemid=1.
It is also expected that each student will behave in a manner that is consistent with the Fisher
Honor Statement, which reads as follows:
As a member of the Fisher College of Business Community, I am personally
committed to the highest standards of behavior. Honesty and integrity are the
foundations from which I will measure my actions. I will hold myself
accountable to adhere to those standards. As a future leader in the community
and business environment, I pledge to live by these principles and celebrate
those who share these ideals.
While most students have high standards and behave honorably, like every academic institution,
we sometimes encounter cases of academic misconduct. It is the obligation of students and
faculty members to report suspected cases of academic and student misconduct. Students can
report suspected violations of academic integrity or student misconduct to a faculty member or
to a program's leadership. All reported cases of academic misconduct are actively pursued and
confidentiality is maintained.
Permitted study materials: Use of inappropriate study materials, including previously
prepared papers compromises the concept of equal opportunity for all students and therefore is
prohibited. You may use materials that generally are available to all students provided that they
maintain the spirit of the learning objectives.
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Course Framework -- (Subject to Change at the discretion of the instructor)
Weds March 2 Perspective

Gradual shifts in Morals and Ethics

Culturalization of Behaviors

Professional Skepticism

Accountability Test --- “Court of Public Opinion”

Current Events

“Framing” OSU Code of Student Conduct & Code of Academic
Discuss Opinion Paper #1 Assignment - due Weds 3/11
Monday March 7 In the absence of Rules

Impact of a Cynical Business Environment

Types of Controls --- Rules to the Contrary

Cultural Diversity and the Global Ramifications
 Changing Expectations for Accountants & Business Professionals
 Current Events
Weds March 9 Decision Making
(Point Counterpoint Team Assignments)
 Opinion Paper #1 Discussion: OSU Code of Student Conduct
 Subordination of Judgment
 Auditor Fraud Prevention Responsibilities
 If Audits have value, why companies do not voluntarily get one?

Personal Ethics and Consequence

Business Ethics vs. Ability to Compete

Assignment of Opinion Paper #2 - due March 25

Current Events
Week of 3/14 --- Spring Break
Monday March 21 What is Fraud --- Commonalities

Customer expectations & considerations

Are we a Cheating Culture? What drives unethical behavior?

Gaming Ethics

Opportunity Triangle (Diamond) of Fraud

Pressure, Rationalization, Capability, Incentive

Current Events
Weds March 23 Professional Standards --- “Walking the Talk” Integrity
and Objectivity

Teams 1 & 2 Point Counterpoint Presentation: Value of Audits

Being Situationally Aware --- non-accounting auditing essentials

Competence & Sufficient Data

Independence, Integrity & Objectivity

Due Care
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




Professionalism & Acts Discreditable
Exceptions to Confidentiality
Opinion Paper #2 Discussion: Utilitarian vs Deontology
Assignment of Opinion Paper #3 - due April 1
Current Events
Monday March 28 Balance GAAP with Managerial Accounting Demands

Teams 3 & 4 Point Counterpoint Presentation: CPA Privilege

Compliance vs. Support --- Advisory vs. Watchdog

Transparency --- Pro/Con

When you are the only CPA on the team

Ethics Decision Tree for CPAs in Business & Industry. Government.

Your Responsibility --- Reasonable, Prudent, Fiduciary

Current Events
Weds March 30 Accountancy Board, NASBA & IRS

ABO --- Aspirational Aspects of Rules and Regulations

Regulatory Guidance --- Section 4701 of the ORC & OAC (UAA)

Application and Interpretation

Sarbanes-Oxley --- Impact

Tax, Auditing & Assurance Service

Who is your client?

Opinion Paper #3 Discussion: Ethical Decision Tree

Assignment of Opinion Paper #4 - due April 8

Current Events
Monday April 4 Professional Associations & Resources

Teams 5 & 6 Point Counterpoint Presentation: Partner & Firm Rotation

AICPA’s PEEC

AICPA, State Societies, CGMA, Other Associations

What makes a Profession --- What keeps it vibrant and valuable

Technical Resources/Review

Current Events
Weds April 6 Bottom-line… Earnings Management

Materiality & Earnings Management

Judgment (Exceptions to Confidentiality)

Managing in Today’s Cynical Business Climate

Gaming the Financials --- Shareholders vs. “the” Public

Opinion Paper #4 Discussion: Audit Report

Assignment of Opinion Paper #5 - due April 15

Current Events
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Monday April 11 Leadership --- Enhancing your Ethical & Advisory Role

Teams 7 & 8 Point Counterpoint Presentation: Commissions,
Contingent & Referral Fees

10 Outstanding Qualities - Key Leadership Traits -- Leadership &
Ethics

Expand your Sense of Responsibility to the Public

Stay involved outside of accounting

Initiate communication --- Be Visible

Maintaining Lifelong Ethical Perspective

Current Events
Weds April 13 Attest Function

Personal Success Defined

Value Discussion -- Value Going Forward

Opinion Paper #5 Discussion: Social Contract

Assignment of Opinion Paper #6 - due April 22

Current Events
Monday April 18 The Accounting Profession Year 2020

Teams 9 & 10 Point Counterpoint Presentation: Who has it more
Ethically Challenging – CPAs in Industry or Public Practice?

Tips on being more Effective

Public Perception &Reality

Trust

Key Drivers

CPA candidates of the future – KSAs

Current Events
Wednesday April 20 Maximize Your Contribution – Your Ethical Framework

Alternate date for Teams 11 & 12 Point Counterpoint Presentation:
Impact of Transparency

Opinion Paper #6 Discussion: Regulation & Unintended Consequences

Selling your Ethical Behavior

Resource Review

Current Events
Monday April 25 Tying it all together

Teams 11 & 12 Point Counterpoint Presentation (4/22 if no class 4/27)

Exam Review

Current Events
FINAL – 4/25 – Take Home – DUE 5:00 P.M. April 27, 2014
If a class is cancelled for any reason, an additional 250-500 word “opinion” paper
is due the following class on an ethical issue taken from headlines in the prior 30
days --- the more current, the better.
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