Select one of the two accoiunting-related situations

Reference no: EM13599667

Ethical control frameworks: In December 2002, Time magazine named Cynthia Cooper, Coleen Rowley, and Sherron Watkins as its Persons of the Year. Cynthia Cooper was vice president of internal audit for WorldCom and informed the firm's audit committee that the firm had improperly treated billions of dollars as capital expenditures rather than properly treating them as period expenses. Coleen Rowley was an FBI attorney who wrote a 13- page memo describing deficiencies in the FBI. Sherron Watkins was vice president at Enron and inmformed chair man Kenneth Lay of her serious concerns about Enron's financial reporting.

Select one of the two accoiunting-related situations (WorldCom or Enron) to answer the following questions on the basis of the Time magazine Person of the Year articles or other articles.

A) How did Cooper and Watkins become aware of financial reporting problems within their companies?
B) Which of the nine alternatives listed on page 348 (or other variation) did Cooper or Watkins take? How did the public become aware of their concerns?
C) What pressures did Cooper or Watkins face to suspend their ethical judgments or drop their concerns? Who would have benefited if Cooper or Watkins had dropped their concerns?
D) What information is reported in the article about WorldCom's or Enron's code of ethics, communication of the code, and system of reporting violations of the code?
E) What role did personal norms play in Cooper's and Watkin's decisions to report the problems they had discovered?
F) What consequences did Cooper and Watkins face for reporting the problems?
G) If your had been in Watkin's or Cooper's place, what would you have done?

Reference no: EM13599667

Questions Cloud

Coverall carpets inc is planning to borrow 12000 from the : coverall carpets inc. is planning to borrow 12000 from the bank. the bank offers the choice of a 12 percent discount

One way of getting the needed funds would be to forgo the : the company purchases supplies from a single supplier on terms of 110 net 20 days and it currently takes the discount.

If the selling prices at the split-off point before further : joint products inc. produces two joint products x and v using a common input. these are produced in batches. the common

Inland oil arranged a 10000000 revolving credit agreement : inland oil arranged a 10000000 revolving credit agreement with a group of small banks. the firm paid an annual

Select one of the two accoiunting-related situations : ethical control frameworks in december 2002 time magazine named cynthia cooper coleen rowley and sherron watkins as its

Determine whether bills return-on-sales ration has met the : determine whether bills return-on-sales ration has met the companywide target. has bill done a good or a poor job?

Lyla apothecary worked as a trainee pharmacist on the : lyla apothecary worked as a trainee pharmacist on the weekend and during university holidays for the past 3 years. the

Design a performance report for the chicago omni hotel : the chicago omni hotel is a 750-room luxury hotel offering guests the finest facilities in downtown chicago. the hotel

Prepare a report that shows the effect on the companys : rosiek corporation uses part a55 in one of its products. the companys accounting department reports the following costs

User Account

All Pages