Version 04 February 26, 2014
THE OHIO STATE UNIVERSITY
Max M. Fisher College of Business
Ethical Challenges in the Accounting Profession--- Winter 2014
Course # AMIS 7010 – Feb 26 – April 28, 2014 -- M-W 10:15- 11:45 -- 1.5 Credit Hours
INSTRUCTOR INFORMATION
Instructor:
Jerry L. Esselstein, CPA
Office:
252 Fisher Hall
Office Phone: Cell—614.306.5555
Emergency only -- 292-2081 (Nicole Wade, Academic Department Coordinator Dept of Accounting and MIS)
Office Hours: By appointment
E-mail:
Preferred email -- jerry@esselstein.com
(esselstein_11@fisher.osu.edu) (esselstein.11@osu.edu)
CLASS INFORMATION:
M-W 10:15 -11:45 Room 305 GE
Review Sessions TBA
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
Team assignment: Six – 4 member teams --- Teams will only have two Opinion Papers (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 – 6 Total – Max 1,000 words each
• Schedule of Topics Provided
• Reading assignments by topic -- Class Participation
• Presentation Team members only two topics due
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“Opinion Paper” grading: Opinion Papers will be graded using satisfactory (S), and
unsatisfactory (U). Guidelines and associated points are:
Points for
Category
Description
Opinion
Paper
Satisfactory
Issue defined, complete in presentation & depth
20-30
Unsatisfactory Incomplete
1-19
Not submitted Not submitted or no effort shown
0
The Opinion Paper must be submitted at the beginning of class on the due date shown on
the schedule distributed the first day of class. Because only a subset of all assigned topics
will be used to determine scores (Top 5 out of 6), no late assignments will be accepted
except for extraordinary circumstances as determined by the instructor
Final Examination
Take Home
Date/Time
Due April 23
Coverage
5 to 10 short essays
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. A make-up Final may be scheduled. The choice rests with the instructor. You
are strongly urged to make every effort to take the Final as scheduled.
GRADING: Non-Team Presentation Participants
Components that determine the course grade:
Individual Opinion Papers (best 5 of 6)
Final Examination
Total Point Base net of Bonus Pts. & Reductions
150 Points
100 Points
250 Points
Potential Bonus Points and Point Reductions
Perfect attendance
Opinion Paper # 6 (Five are 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: Team Participants (24 Students – Six Four Member Teams)
Components that will determine the course grade are:
Individual Opinion Paper - Two Required
60
Team Presentation -- Up to 90 each participant
90
Final Examination
100
Total Point Base net of Bonus Pts. & Reductions
250
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
Points
Points
Points
Points
60 Bonus points
30
50
140
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Lack of Class Participation – discretionary – reduction up to
Unexcused missed-class
Total Possible Reductions
(50) Point Reductions
(20)
(70)
Grading 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 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.
Expected 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.ohiostate.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.
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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.
Course Framework -- (Subject to Change at the discretion of the instructor)
Weds Feb 26 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
Conduct Assignment for next class Opinion Paper #1 due Weds 3/5
Monday March 3 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 5 Decision Making
(Team Assignments)
• Opinion Paper #1 Discussion
• 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 19
•
Current Events
Spring Break --- Week of 3/10
Monday March 17 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
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Weds March 19 Professional Standards --- “Walking the Talk” Integrity and
Objectivity
•
Team 1 Presentation
•
Being Situationally Aware --- non-accounting auditing essentials
•
Competence & Sufficient Data
•
Independence, Integrity & Objectivity
•
Due Care
•
Professionalism & Acts Discreditable
•
Exceptions to Confidentiality
•
Opinion Paper #2 Discussion
•
Assignment of Opinion Paper #3 due March 26
•
Current Events
Monday March 24 Balance GAAP with Managerial Accounting Demands
•
Team 2 Presentation
•
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 26 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
•
Assignment of Opinion Paper #4 due April 2
•
Current Events
Monday March 31 Professional Associations & Resources
•
Team 3 Presentation
•
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 2 Bottom-line… Earnings Management
•
Materiality & Earnings Management
•
Judgment (Exceptions to Confidentiality)
•
Managing in Today’s Cynical Business Climate
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•
•
•
•
Gaming the Financials --- Shareholders vs. “the” Public
Opinion Paper #4 Discussion
Assignment of Opinion Paper #5 due April 9
Current Events
Monday April 7 Leadership --- Enhancing your Ethical & Advisory Role
•
Team 4 Presentation
•
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 9 Attest Function
•
Team 5 Presentation
•
Personal Success Defined
•
Value Discussion -- Value Going Forward
•
Opinion Paper #5 Discussion
•
Assignment of Opinion Paper #6 due April 16
•
Current Events
Monday April 14 The Accounting Profession Year 2020
•
Team 6 Presentation
•
Tips on being more Effective
•
Public Perception/Reality
•
Trust
•
Key Drivers
•
CPA candidates of the future – KSAs
•
Current Events
Wednesday April 16 Maximize Your Contribution – Your Ethical Framework
•
Opinion Paper #6 Discussion
•
Selling your Ethical Behavior
•
Resource Review
•
Current Events
Monday April 21 Tying it all together
•
Exam Review
•
Current Events
Final – 4/23 – Take Home – DUE 2:00 P.M. April 23, 2014
If a class is cancelled for any reason, an additional 250-500 work “opinion”
paper is due the following week on an ethical issue ripped from the headlines in
the prior 30 days --- the more current, the better.
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