SUMMER 2012
ACCOUNTING 596
ETHICS IN ACCOUNTING
SAN DIEGO STATE UNIVERSITY
INSTRUCTOR:
TEXT:
Charles T. Sellers, CPA
csellers@mail.sdsu.edu
Business & Professional Ethics for Directors, Executives &
Accountants; Brooks & Dunn; 6th E; SW Cengage Learning
PROGRAM LEVEL LEARNING OUTCOMES:
The College of Business and the Charles W Lamden School of Accountancy (SOA) have learning
objectives for each graduate and undergraduate accounting major. A complete list of these can be found
on the SOA’s website. This course intends to address the following of those learning objectives:
Undergraduate
Goal III: Ethical Reasoning - Distinguish and analyze ethical problems that occur in
business and society, and choose and defend ethical solutions.
SLO 3.1: Explain the various ethical dimensions of business decision making.
SLO 3.2: Explain the role of various affected parties in business decision making.
SLO 3.3: Assess the ethics of decision alternatives using different ethical decision rules.
SLO 3.4: Apply ethical decision-making rules to cases drawn from various business sub-disciplines.
SLO 3.5: Apply ethical rules, theories and regulatory guidelines to the
practice of public, private and tax accounting; understand the need for
professional integrity and objectivity.
Graduate
III.
Ethics
SLO #3.1 Students will be able to apply ethical judgment and professional standards in analyzing
situations and formulating accounting and business decisions.
COURSE LEVEL LEARNING OUTCOMES: At the end of this course, you will be able to –
1.) Apply ethical decision making models to accounting situations in various organizations;
2.) Analyze the California Accountancy Act and Board of Accountancy regulations related to current
ethics issues; and
3.) Analyze codes of conduct issued by relevant standard setting organizations (e.g. American Institute
of Certified Public Accountants; Institute of Management Accountants; Institute of Internal
Auditors; International Federation of Accountants; Internal Revenue Service; and the Public
Company Accounting Oversight Board).
COURSE OBJECTIVES: In order to achieve these learning outcomes, the course will help you to
develop a thorough understanding of the following core topics –
1.) The emerging ethics environment for both business and the accounting profession;
2.) Ethics trends and tragedies with the resulting new expectations for governance and ethical behavior
of directors, managers and professionals;
3.) Frameworks for defensible ethical analysis and decision making;
4.) The role and ethical expectations of the accounting professional;
5.) Some of the major ethics pitfalls to be faced by professional accountants; and
6.) How to institute a governance system which:
a.) Develops a corporate culture to guide and manage employee behavior;
b.) Provides ethical assurance for officers, directors and other stakeholders; and
c.) Considers the important aspects of workplace ethics, international operations, social
accountability and audit, as well as crisis management and ethics risk management.
This course introduces competing expectations about the purpose of organizations and hence raises
questions concerning the appropriate responsibility of their managers. It develops the position that the
responsibility of managers for effective action extends not only to the familiar economic and market
environments, but to the wider social and public arenas as well. Students will learn to analyze, question
critically, challenge and change ethical standards, priorities, points of trade-off and compromise to be
applied to both business and professional behavior. Specifically, this course will highlight the ethical
shortcomings of past leaders and organizations which are to be avoided or managed to escape the
significant ethics risks facing future leaders in either business or the accounting profession.
PROFESSIONAL COMPETENCIES: This course also deals directly with the following pervasive
competencies which are at the core of the accounting profession –
1.) Ethical Behavior and Professionalism resulting in:
a.) Maintenance of confidence by the public, employers and clients; and
b.) Commitment to integrity, objectivity, independence and appropriate values,
including professional skepticism.
2.) Personal Attributes necessary for:
a.) Leadership in decision making and organizational performance;
b.) Self-management and the maintenance of professional competence;
c.) Professional judgment and knowing one’s own limitations; and
d.) Taking initiative, adding value, being adaptive and creative.
3.) Professional Skills which encompass the creation, analysis, evaluation and synthesis of information
and ideas; problem solving and decision-making; communication; the provision of services and of
managing and supervising personnel.
TENTATIVE GRADING: Undergraduate
TENTATIVE GRADING: Graduate
25% - Homework & Class Participation
20% - Homework & Class Participation
25% - Chapter Quizzes & Cases
25% - Midterm Examination
25% - Final Examination
20% - Chapter Quizzes & Cases
20% - Midterm Examination
20% - Final Examination
20% - Writing Assignment
CLASS SCHEDULE & ASSIGNMENTS:
5-23
5-30
6-04
6-06
6-11
6-13
6-18
6-20
6-25
6-27
7-02
Chapter 1 – Ethics Expectations
Chapter 2 – Ethics & Governance Scandals
Chapter 3 – Philosophers’ Contributions
Chapter 4 – Practical Ethical Decision Making
Chapter 5 – Corporate Ethical Governance & Accountability
Midterm Examination
Chapter 6 – Professional Accounting in the Public Interest
Chapter 7 – Managing Ethics Risks & Opportunities
Chapter 8 – The Subprime Lending Fiasco: Ethics Issues
Chapter 9 – The Credibility Crisis: Enron, WorldCom & SOX
Final Examination
ACADEMIC HONESTY
The SDSU Standards for Student Conduct (http://www.sa.sdsu.edu/srr/conduct1.html)
state that unacceptable student behavior includes “cheating, plagiarism or other forms of
academic dishonesty that are intended to gain unfair academic advantage.”
Unprofessional conduct adversely impacts your fellow students, the accounting faculty,
the Charles W. Lamden School of Accountancy, SDSU and the accounting profession.
The Charles W. Lamden School of Accountancy takes academic honesty very seriously
and vigorously enforces university policy related to any such infractions. Any student
suspected of academic dishonesty will be reported to the SDSU Center for Student Rights
and Responsibilities. If found responsible, the student will receive a grade of zero on the
assignment involved and a grade of “F” in the course for any subsequent infractions.