Erica works in the accounting department at Spartans Inc. creating budgets. Based on her forecasts, she believes earnings will fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date. Which, if any, ethical standards did Erica violate? O Integrity - failure to abstain from activities that might discredit the profession. O Integrity - failure to mitigate conflicts of interest. Confidentiality - failure to refrain from using information for an unethical advantage. O Competence - failure to provide information that is accurate, clear, and concise. O Credibility - failure to provide all relevant information that could influence a decision. O Confidentiality - disclosure of confidential information without authorization or legal requirement.

Erica works in the accounting department at Spartans Inc. creating budgets. Based on her forecasts, she believes earnings will fall short of analysts' projections. She tells her aunt to sell stock in the company before the earnings release date. Which, if any, ethical standards did Erica violate? O Integrity - failure to abstain from activities that might discredit the profession. O Integrity - failure to mitigate conflicts of interest. Confidentiality - failure to refrain from using information for an unethical advantage. O Competence - failure to provide information that is accurate, clear, and concise. O Credibility - failure to provide all relevant information that could influence a decision. O Confidentiality - disclosure of confidential information without authorization or legal requirement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jones is a purchasing officer for Smith & Co. He buys exclusively from Brown even though other suppliers are better and cheaper. Jones has an undisclosed interest in Brown’s business. This situation would be classified as ______________. A. Embezzlement. B. Larceny. C. Conflict of interest. D. Insider trading.
Mr. Asim is an Accounts Officer in Atlas Industries LLC which is a popular Bicycle manufacturing company in Muscat. As an accounts officer Mr. Asim should follow all the fundamental principles of ethics related to his profession. Which one of the following acts of Mr. Asim may leads to intimidation threat? O a. He has financial or other interests. O b. He is too sympathetic to the interests of others. OC. He promotes the position of his employer. O d. He is unduly influenced by others.
A distressed student is suing his college, claiming that his accounting instructor is a sorceress of evil trickery. The school's legal advisors cannot reasonably estimate the amount the school may have to pay in damages for the student's extreme pain and suffering. The advisors do believe there is a high probability the college will lose the case and need to pay damages to the traumatized student. This represents a: a.necessary part of taking any college-level accounting class. b. known liability that should be ignored. c. contingent liability that should be journalized. d. contingent liability that should be disclosed in the financial statement notes.
5. What does Tina mean in her statement to the Clare County Review "the effects of an embezzlement are far reaching and detrimental for everyone"? Who were all the stakeholders that were all affected in this case? How was each of them harmed? 6. Jenifer was caught embezzling via the payroll system, how else might she have been stealing from the company that was never proven? 7. Why do you think Jenifer embezzled the money? 8. Do you think her sentencing is too lenient, too harsh, or is appropriate? Why? 9. What would you do if your friend and employee was stealing from a company that you owned?
Ibrahim is member of ICAP working as a unit accountant. He is a member of a bonus scheme under which, staff receive a bonus of 10% of their and liability figures. Ali has explained this to Bashir. Bashir responded that Ali should ignore this information as the company need to maintain a certain ratio between the assets and liabilities in the statement of financial position. Required: What are the ethical implications for Ali in this case?
Do you think there are any circumstances when you should go outside the company to report financial wrongdoing? If so, to what person/organization would you go? Why? If not, why would you not take the information outside the company?
Strivant Industries is a struggling company whose profits are dropping. Manager Jill Trainor is looking at the numbers on the annual report she is preparing to send out to investors. She takes a red pencil and strikes through several numbers, replacing them with figures that make Strivant seem more profitable than it really is. This is an example of Multiple Choice editing. auditing. embezzling. fraud.
How does an auditor’s commitment to the firm, the profession, and to colleagues influence whether she will blow the whistle on financial wrongdoing?
This corporate con stated that she stole from the company because she believed it was "okay" to take the money because there wasn't any actual person she was stealing from, and it was right because she was being underpaid. According to the fraud triangle, her reasoning is most closely associated with O Availability Rationalization O Need/Motivation O Opportunity
Huang is an investment adviser for high-net-worth clients. Huang’sresponsibility is to assist new clients complete the extensive documentationneeded in opening an account. These signed documents give access to clientassets and the discretion to trade on behalf of the client. Because Huang is new and not familiar with firm procedures and is afraid of making mistakes with the documents. Therefore, he uses erasable ink in completing thedocumentation so he can easily fix any mistakes without having to go back tothe client for additional signatures. Comment the action of Huang
14. Paul Schmidt, a representative for Westby Investments, is explaining how security analysts use the results of the accounting process. He states, "Analysts do not have access to all the entries that went into creating a company's financial statements. If the analyst carefully reviews the auditor's report for any instances where the financial statements deviate from the appropriate accounting principles, he can then be confident that management is not manipulating earnings." Schmidt is: correct. incorrect, because the entries that went into creating a company's financial statements are publicly available. incorrect, because management can manipulate earnings even within the confines of generally accepted accounting principles.
The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…