SUMMER 2013
ACCOUNTING 596
ETHICS IN ACCOUNTING
SAN DIEGO STATE UNIVERSITY
INSTRUCTOR
COURSE TEXT
Charles T. Sellers, CPA
Office Hours: MW1700
Student Services E2427
csellers@mail.sdsu.edu
Business & Professional Ethics for Directors,
Executives & Accountants
Leonard J. Brooks & Paul Dunn, 6th Edition
South-Western Cengage Learning, Publisher
PROGRAM LEVEL LEARNING OUTCOMES - The SDSU College of Business Administration and
the Charles W. Lamden School of Accountancy (SOA) have learning objectives for each graduate and
undergraduate accounting major. A complete list of which can be found on the SOA’s website. This
course intends to address the following of these learning objectives:
Undergraduate Level:
Goal III : Ethical Reasoning - Distinguish and analyze various ethical problems that occur in business
and society; choose and defend ethical solutions to such problems.
SLO 3.1: Explain the varied 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-making 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 Level:
Goal III : Ethics - Rules of conduct with respect to a particular group, culture or class of human actions.
SLO 3.1: Students will be able to apply ethical judgment and professional standards in analyzing
various 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 the 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, executives, 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 both 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 and being adaptive and creative.
3.) Professional Skills which encompass:
a.) The creation, analysis, evaluation and synthesis of both information and ideas;
b.) The provision of services and the management and supervision of personnel;
c.) Problem solving and ethical decision-making; and
d.) Interpersonal communications.
TENTATIVE GRADING – Undergraduate:
TENTATIVE GRADING – Graduate:
30% - Midterm Examination
30% - Final Examination
15% - Chapter Quizzes
15% - Homework
5% - Exercises
5% - Participation
20% - Midterm Examination
20% - Final Examination
20% - Writing Assignment
15% - Chapter Quizzes
15% - Homework
5% - Exercises
5% - Participation
CLASS SCHEDULE & ASSIGNMENTS
05-22
05-27
05-29
06-03
06-05
06-10
06-12
06-17
06-19
06-24
06-26
07-01
07-03
Introduction
Memorial Day
Chapters 1/2 – Texaco case (43) and WorldCom case (112)
Chapter 3 – Philosophers’ Contributions (Insurance/158)
AICPA Code and CA Board of Accountancy exercises due
Chapter 4 – Practical Ethical Decision Making (Kardell/220)
Chapter 5 – Corporate Ethical Governance and Accountability (Options/296)
IRS Circular 230 video and Midterm Examination Case Paper Due
Chapter 6 – Professional Accounting in the Public Interest (Liczyk/428)
Chapter 7 – Managing Ethics Risks and Opportunities (Carbon/529)
Chapter 8 – (Subprime/631) Graduate Writing Assignment Due (Madoff/119)
Chapter 9 – The Credibility Crisis: Enron, WorldCom and SOX (Waste/676)
Ten Question Assessment and Final Examination Case Paper Due
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 an 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. Any subsequent violations will result in a grade of “F” for
the entire course.