Version 04 February 27, 2013
THE OHIO STATE UNIVERSITY
Max M. Fisher College of Business
Ethical Challenges in the Accounting Profession--- Winter 2013
Course # AMIS 7010 – Mar 4 – May 1, 2013 -- 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 --- Presentation Teams will only have two Opinion
Papers (not five)
Individual homework assignments:
A.
Business and Accounting Ethics in the Media ---- 5-15 minutes each session
 Class Participation
B. “Opinion Paper” due weekly – first assigned March 6th due March 18th – Max 700 words
 Schedule of Topics Provided March 6th
 Reading assignments by topic -- Class Participation
 Team Presentation members pick only two
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“Opinion Paper” grading: Opinion Papers will be graded using satisfactory (S), and
unsatisfactory (U). Guidelines and associated points are:
Category
Points for
Opinion
Paper
18-20
Description
Satisfactory
Issue defined, complete in presentation
& depth
Unsatisfactory Incomplete
Not submitted Not submitted or no effort shown
0-17
0
The Opinion Paper must be submitted at the beginning of class on the due date shown on
the schedule that will be discussed and distributed March 6. 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
EXAMINATIONS:
All examinations will be administered in class on the dates indicated below:
Final Examination
Date/Time
April 24 -- 10:00-11:45
Coverage
Point Value
100
5 to 10 short essays
Missing 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 makeup 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 Participants
Components that will determine the course grade are:
Individual Homework Assignments (best 5 of 6)
Team Presentation -- Up to 50 each participant
Final Examination
Total Point Base net of Bonus Pts. & Reductions
100
50
100
250
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
20
50
130
Lack of Class Participation – discretionary – reduction up to
Unexcused missed-class
Total Possible Reductions
Points
Points
Points
Points
(50) Point Reductions
(20)
(70)
GRADING: Team Participants (24 Students – Six Four Member Teams)
Components that will determine the course grade are:
Individual Homework Assignments -- Two Required
40
Team Presentation -- Up to 110 each participant
110
Final Examination
100
Total Point Base net of Bonus Pts. & Reductions
250
Points
Points
Points
Points
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Potential Bonus Points and Point Reductions
Perfect attendance
Opinion Papers #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
20
50
130
(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
Unlimited
Minimum 230 points
B
Minimum 200
C
Minimum 190
D
Minimum 175
F
Under
150
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 in this course 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. You can 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.
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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.
Course Framework -- (Subject to Change at the discretion of the instructor)
Monday March 4 Perspective

Gradual shifts in Morals and Ethics

Culturalization of Behaviors

Professional Skepticism

Accountability Test --- “Court of Public Opinion”

Current Events
Weds March 6 In the absence of Rules

Impact of a Cynical Business Environment

“Framing” OSU Code of Conduct Assignment for next class
Opinion Paper 1 due 3/18/13

Assignment of Opinion Paper due next March 18

Types of Controls --- Rules to the Contrary

Cultural Diversity and the Global Ramifications
 Changing Expectations for Accountants & Business Professionals
Spring Break --- Week of 3/11
Monday March 18 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
Weds March 20 What is Fraud --- Commonalities

Team 1 Presentation

Customer expectations & considerations

Are we a Cheating Culture? What drives unethical behavior?

Gaming Ethics
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



AICPA’s PEEC
Opportunity Triangle of Fraud SAS 99
Pressure
Rationalization
Monday March 25 Professional Standards --- “Walking the Talk” Integrity and
Objectivity

Being Situationally Aware --- non-accounting auditing essentials

Competence & Sufficient Data

Independence, Integrity and Objectivity

Due Care

Professionalism & Acts Discreditable

Exceptions to Confidentiality

Opinion Paper 2 Discussion
Weds March 27 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
Monday April 1 Accountancy Board, NASBA and 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
Weds April 3 Professional Associations & Resources

Team 3 Presentation

AICPA, State Societies, CGMA, Other Associations

What makes a Profession --- What keeps it vibrant and valuable

Technical Resources/Review
Monday April 8 Bottom-line… It must be Earnings Management

Materiality

Earnings Management

Judgment

Managing in Today’s Cynical Business Climate

Gaming the Financials --- Shareholders vs. “the” Public
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


If no one is really hurt……we must meet changing market conditions
Revenue and Expense Games
Opinion Paper 4 Discussion
Weds April 10 Leadership --- Enhancing your Ethical & Advisory Role

Team 4 Presentation

Key Leadership Traits --- Leadership and Ethics

Expand your Sense of Responsibility to the Public

Stay involved outside of accounting

Initiate communication --- Be Visible

Maintaining a Lifelong Ethical Perspective
Monday April 15 Attest Function

Team 5 Presentation

Defined

Value Discussion

Value Going Forward

Opinion Paper 5 Discussion
Weds April 17 The Accounting Profession Year 2020

Team 6 Presentation

Value

Public Perception/Reality

Trust

Key Drivers

CPA candidates of the future -- KSAs
Monday April 22 Maximize Your Contribution – Your Ethical Framework

Opinion Paper 6 Discussion

Defining Personal Success

Tips on being a MORE Effective Person

Understanding Team Ineffectiveness

Ten Qualities of an Outstanding Associate

Selling your Ethical Behavior
Date and Time of Final – Wednesday April 24, 10:00-11:45
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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