This text provides comprehensive coverage of the ethical and professional issues that accounting professionals encounter, and helps students cultivate the ethical commitment needed to ensure that their work meets the highest standards of integrity, independence, and objectivity. Ethical Obligations and Decision Making in Accounting<\/span><\/strong><\/em> is designed to provide instructors with the best flexibility and pedagogical effectiveness of any book on the market. To that end, it includes numerous features designed to make both learning and teaching easier.<\/p>\n

Table of Contents:<\/strong><\/p>\n

Table of Contents and Preface
\nTitle Page
\nCopyright Page
\nPraise for Ethical Obligations and Decision Making in Accounting
\nDedication
\nAbout the Authors
\nForeword
\nPreface
\nEthics Education
\nOverview of Sixth Edition
\nWhat\u2019s New in the Sixth Edition?
\nConnect
\nEnd-of-Chapter Assignments
\nSuggestions for Classroom Discussion
\nEthics IQ Test
\nChapter-by-Chapter Enhancements
\nAcknowledgments
\nConnect
\nInstructors: Student Success Starts with You
\nStudents: Get Learning that Fits You
\nCase Descriptions
\nBrief Contents
\nTable of Contents
\nChapter 1: Ethical Reasoning: Implications for Accounting
\nIntroduction
\nIntegrity: The Basis of Accounting
\nReligious and Philosophical Foundations of Ethics
\nGreek Ethics
\nThe Language of Ethics
\nDifference between Morals and Ethics
\nDifference between Values and Morals
\nEthics and Laws
\nLaws and Ethical Obligations
\nThe Moral Point of View
\nStudent Cheating
\nSocial Networking
\nThe Six Pillars of Character
\nVirtues or Character Traits
\nTrustworthiness
\nRespect
\nResponsibility
\nFairness
\nCaring
\nCitizenship
\nReputation
\nMoral Courage
\nModern Moral Philosophies
\nTeleology
\nDeontology
\nJustice
\nVirtue Ethics
\nMoral Relativism
\nThe Public Interest in Accounting
\nRegulation of the Accounting Profession
\nThe Public Interest in Accounting
\nEthics and Professionalism
\nAICPA Code of Conduct
\nApplication of Ethical Reasoning in Accounting
\n3D Printing Case Study
\nScope and Organization of the Text
\nConcluding Thoughts
\nEthics IQ Test
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 1 Cases
\nCase 1-1Operation Varsity Blues
\nCase 1-2 Giles and Regas
\nCase 1-3 Unintended Consequences
\nCase 1-4 Lone Star School District
\nCase 1-5Lottery Bonanza
\nCase 1-6 Capitalization versus Expensing
\nCase 1-7 Eating Time
\nCase 1-8Section 179 Deduction for Equipment Purchases
\nCase 1-9 Cleveland Custom Cabinets
\nCase 1-10Getting Called-Out on Social Media
\nChapter 2: Cognitive Processes and Ethical Decision Making in Accounting
\nIntroduction
\nBehavioral Ethics
\nSystem 1 Versus System 2 Thinking
\nCognitive Biases
\nAdditional Factors Impacting Our Decisions
\nKohlberg and the Cognitive Development Approach
\nHeinz and the Drug
\nRest\u2019s Four-Component Model of Ethical Decision Making
\nMoral Reasoning and Moral Behavior
\nMoral Sensitivity
\nMoral Judgment
\nMoral Focus
\nMoral Character
\nAligning Ethical Behavior and Ethical Intent
\nWhat Makes for an Ethical Organization?
\nOrganizational Influences on Ethical Decision Making
\nEthical Culture
\nEthical Climate
\nEquity, Diversity, and Inclusion
\nDiversity Versus Inclusion
\nEquality Versus Equity
\nComponents of EDI Initiatives
\nSexual Harassment
\nUber Sexual Harassment Case
\nFactors That Influence Ethical Decision Making
\nIndividual Factors
\nOrganizational Factors
\nEthical Dissonance Model
\nOpportunity
\nBusiness Ethics Intentions, Behavior, and Evaluations
\nEthical Decision-Making Models
\nEthical Decision Making in Accounting and Auditing
\nComponents of the Model
\nIntegrated Ethical Decision-Making Process
\nApplication of the Integrated Ethical Decision-Making Model: Ace Manufacturing
\nGiving Voice to Values
\nReasons and Rationalizations
\nLevers
\nApplication of GVV Methodology: Ace Manufacturing
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 2 Cases
\nCase 2-1 A Team Player? (a GVV case)
\nCase 2-2 FDA Liability Concerns (a GVV case)
\nCase 2-3 Taxes and the Cannabis Business (a GVV case)
\nCase 2-4 A Faulty Budget (a GVV Case)
\nCase 2-5 Not so Diverse, Equitable or Inclusive (a GVV Case)
\nCase 2-6 The Normalization of Unethical Behavior: The Harvey Weinstein Case
\nCase 2-7 Milton Manufacturing Company
\nCase 2-8 Chefs Delight: That Slope Looks Slippery (a GVV case)
\nCase 2-9 Racially Charged Language Inhibits Inclusive Cultures
\nCase 2-10 WorldCom
\nChapter 3: Organizational Ethics and Corporate Governance
\nIntroduction
\nFraud in Organizations
\nOccupational Fraud
\nFinancial Statement Fraud
\nSeven Signs of Ethical Collapse
\nPressure to Maintain the Numbers
\nFear of Reprisals
\nLoyalty to the Boss
\nConflicts of Interest and the Board of Directors
\nInnovations
\nGoodness in Some Areas Atones for Evil in Others
\nEthics in the Workplace
\nCompliance Function
\nIntegrity: The Basis for Trust in the Workplace
\nEmployees Perceptions of Ethics in the Workplace
\nUsing Social Media to Criticize the Employer18
\nFoundation of Corporate Governance Systems
\nEthical and Legal Responsibilities of Officers and Directors
\nComponents of Corporate Governance Systems
\nExecutive Compensation
\nCorporate Governance Oversight and Regulation
\nCorporate Governance Responsibilities
\nCorporate Social Responsibilities
\nSustainability
\nTriple Bottom Line (TBL)
\nViews ofMillennials
\nConscious Capitalism
\nModels of CSR
\nExamples of CSR
\nImpact of Governmental Regulations
\nCorporate Governance Structures and Relationships
\nRelationships between Audit Committee, Internal Auditors, and External Auditors
\nInternal Controls as a Monitoring Device
\nEquifax Data Breach
\nWhistleblowing
\nMorality of Whistleblowing
\nRights and Duties
\nAnthony Menendez v. Halliburton, Inc.73
\nDodd-Frank Provisions
\nWhistleblowing Payouts
\nImplications of Supreme Court Decision in Digital Realty Trust, Inc. v. Somers
\nWhistleblowers Can Use Confidential Company Documents to Expose Fraud
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 3 Cases
\nCase 3-1 The Parable of the Sadhu
\nCase 3-2 Rite Aid Inventory Surplus Fraud
\nCase 3-3 United Thermostatic Controls (a GVV case)
\nCase 3-4 Franklin Industries\u2019 Whistleblowing (a GVV Case)
\nCase 3-5 Theranos: A Cautionary Tale for Silicon Valley
\nCase 3-6 Blow the Whistle or Don’t Blow the Whistle
\nCase 3-7 Wells Fargo\u2014A Toxic Sales Culture
\nCase 3-8 Accountant Takes on Halliburton and Wins!
\nCase 3-9 Expense or Capitalize Research and Development Costs(a GVV Case)
\nCase 3-10 Cheating on Internal Training Exams at KPMG
\nChapter 4: AICPA Code of Professional Conduct
\nIntroduction
\nWhat is Professional Judgment in Accounting?
\nKPMG Professional Judgment Framework
\nLink between Professional Judgment and Cognitive Processes
\nLink between Professional Judgment and AICPA Code of Professional Conduct
\nAICPA Code: Independence Considerations for Members in Public Practice
\nIntroduction to Revised Code
\nConceptual Framework for AICPA Independence Standards
\nSafeguards to Counteract Threats
\nSarbanes-Oxley Act(SOX): Nonaudit Services
\nRelationships That May Impair Independence
\nSEC Actions on Auditor Independence
\nSEC Actions against Big Four Audit Firms
\nEmerging Issues
\nAICPA Code: Ethical Conflicts
\nAICPA Code: Conceptual Framework for Members in Business
\nThreats and Safeguards
\nLink between Conceptual Framework and Giving Voice to Values
\nRules for the Performance of Professional Services
\nGeneral Standards Rule
\nActs Discreditable
\nContingent Fees
\nCommissions and Referral Fees
\nAdvertising and Other Forms of Solicitation
\nConfidential Information
\nForm of Organization and Name
\nThe Spirit of the Rules
\nEthics and Tax Services
\nStatements on Standards for Tax Services (SSTS)
\nTreasury Circular 230
\nTax Shelters
\nPCAOB Rules
\nRule 3520\u2014Auditor Independence
\nRule 3521\u2014Contingent Fees
\nRule 3522\u2014Tax Transactions
\nRule 3523\u2014Tax Services for Persons in Financial Reporting Oversight Roles
\nRule 3524\u2014Audit Committee Preapproval of Certain Tax Services
\nRule 3525\u2014Audit Committee Preapproval of Nonauditing Services Related to Internal Control over Financial Reporting
\nRule 3526\u2014Communication with Audit Committees Concerning Independence
\nPCAOB Inspections
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 4 Cases
\nCase 4-1 KBC Solutions
\nCase 4-2 Beauda Medical Center
\nCase 4-3 Family Games, Inc. (a GVV case)
\nCase 4-4 Threats to Audit Independence
\nCase 4-5 Han, Kang & Lee, LLC (a GVV case)
\nCase 4-6 Tax Shelters
\nCase 4-7 Sexual Harassment at EY
\nCase 4-8 Marcum LLP
\nCase 4-9 PwC Mischaracterizes Nonaudit Services
\nCase 4-10 Johnson Pharmaceuticals (a GVV case)
\nChapter 5: Fraud in Financial Statements and Auditor Responsibilities
\nIntroduction
\nFraud in Financial Statements
\nIntroduction
\nNature and Causes of Misstatements
\nErrors, Fraud, and Illegal Acts
\nThe Fraud Triangle and AU-C 240
\nIncentives\/Pressures to Commit Fraud
\nOpportunity to Commit Fraud
\nRationalization for the Fraud
\nFrisch\u2019s Restaurant: Trust but Verify
\nFraud Considerations and Risk Assessment
\nFraud Risk Assessment
\nAssessing Management: Red Flags
\nIs There a Dark Triad Personality Risk?
\nTyco Fraud
\nInternal Controls Over Financial Reporting
\nAudit Committee Responsibilities for Fraud Risk Assessment
\nAuditor\u2019s Communication with Those Charged with Governance
\nManagement Representations and Financial Statement Certifications
\nQwest Communications International Inc.
\nAudit Report and Auditing Standards
\nBackground
\nAudit Report
\nPCAOB AS 1301: Communications with Audit Committees27
\nPCAOB AS 3101: The Auditor\u2019s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion28
\nAudit Opinions
\nLimitations of the Audit Report and the Future of the Auditing Profession
\nLimitations of the Audit Report
\nGenerally Accepted Auditing Standards (GAAS)
\nThe Future of the Auditing Profession
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 5 Cases
\nCase 5-1 Loyalty and Fraud Reporting (a GVV case)
\nCase 5-2 ZZZZ Best1
\nCase 5-3 Reauditing Financial Statements
\nCase 5-4 GE Multibillion Insurance Charge
\nCase 5-5 Audit Planning Gone Awry
\nCase 5-6 EY Target of German Regulators Over Suspected Audit Deficiencies at Wirecard
\nCase 5-7 Diamond Foods: Accounting for Nuts1
\nCase 5-8 Critical Audit Matters or Potentially Damaging Disclosure?
\nCase 5-9 Weatherford International
\nCase 5-10 Potential Fraud at EP Sports
\nChapter 6: Motivation for Fraudulent Financial Reporting
\nIntroduction
\nCharacteristics of Earnings Management
\nMotivation for Earnings Management
\nIncome Smoothing
\nEthical Choices
\nAcceptability of Earnings Management
\nHow Managers and Accountants Perceive Earnings Management
\nEthics of Earnings Management
\nEarnings Guidance
\nAudit Committee Responsibilities
\nPull-In Sales
\nUsing Social Media to Report Earnings Guidance and Financial Results
\nRed Flags
\nEarnings Quality
\nFinancial Statement Analysis
\nGreen Mountain Coffee Roasters
\nRevenue Recognition
\nFinancial Shenanigans
\nFinancial Statement Effects
\nExamples of Shenanigans
\nNon-GAAP Financial Metrics
\nNon-GAAP Financial Metrics
\nRevisiting Financial Shenanigans
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 6 Cases
\nCase 6-1 Winners & Losers, Inc.
\nCase 6-2 Solutions Network, Inc. (a GVV case)
\nCase 6-3 Allergan: Mind the GAAP
\nCase 6-4 The Potential Darkside of Using Non-GAAP Metrics (a GVV case)
\nCase 6-5 Harrison Industries
\nCase 6-6 TierOne Bank
\nCase 6-7 Non-GAAP Metric Disclosure by General Electric: Value Added, Red Herring, or Red Flag?
\nCase 6-8BMW\u2019s Sales ReportingPractices
\nCase 6-9 The North Face, Inc.
\nCase 6-10 Beazer Homes
\nChapter 7: Consequences of Earnings Management: The Need for Ethical Leadership in Accounting
\nIntroduction
\nCharacteristics of Financial Statement Restatements
\nSummary Reporting of Accounting Restatements
\nRestatements Due to Errors in Accounting and Reporting
\nRestatements Due to Operational Issues
\nMagnaChip Semiconductor, Ltd
\nSEC Clawback for Accounting Violations
\nCorporate Governance and Earnings Management
\nWhat is Ethical Leadership?
\nTypes of Leaders
\nSocial Learning Theory
\nEthical Skills of Leaders in Accounting Firms
\nLeadership Failures in the Accounting Profession
\nEthical Leadership in the Accounting Profession
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEnd Notes
\nChapter 7 Cases
\nCase 7-1 Should the Financial Statements be Reissued or Revised?
\nCase 7-2 PPP Loans: Free Money at a Cost (a GVV case)
\nCase 7-3 Managing Earnings and Putting Ethical Leadership to the Test
\nCase 7-4 Monsanto Company Roundup
\nCase 7-5 Kraft Heinz
\nCase 7-6 New Leadership at General Electric
\nCase 7-7 Krispy Kreme Doughnuts Inc.
\nCase 7-8 Sunbeam Corporation
\nCase 7-9 KPMG Tax Shelter Scandal
\nCase 7-10 Theranos: Accounting for Bad Blood
\nChapter 8: Auditors’ Legal Liabilities and Defenses
\nIntroduction
\nLegal Liabilities of Auditors: An Overview
\nCommon-Law Liability
\nLiability to Clients\u2014Privity Relationship
\nProfessional Negligence
\nDefending Audit-Malpractice Cases
\nRecklessness
\nNegligent Misrepresentation
\nLiability to Third Parties
\nActually Foreseen Third Parties
\nReasonably Foreseeable Third Parties
\nCommon-Law Liability For Fraud
\nStatutory Law Liability for Fraud
\nLiability for Fraudulent Misrepresentation
\nIncome Tax Fraud versus Tax Negligence
\nAuditor Defenses to Negligence and Fraud
\nAuditor Defenses to Negligence
\nAuditor Defenses to Negligent Misrepresentation
\nAuditor Defenses to Fraud
\nConsideration of Fraud in a Financial Statement Audit
\nStatutory Liability
\nSecurities Act of 1933
\nSection 11 Liability Under Securities Act of 1933
\nSection 11 Liability Standard for Auditors
\nSection 11 Auditors\u2019 \u201cOpinion\u201d Statements
\nSecurities Exchange Act of 1934
\nPrivate Securities Litigation Reform Act (PSLRA)
\nProportionate Liability
\nEstablishing Scienter
\nSOX and Auditor Legal Liabilities
\nSection 404. Internal Control over Financial Reporting
\nSection 302. Corporate Responsibility for Financial Reports
\nForeign Corrupt Practices Act (FCPA)
\nConcluding Thoughts
\nDiscussion Questions
\nComprehensive Questions
\nEndnotes
\nChapter 8 Cases
\nCase 8-1 Your Tax Client
\nCase 8-2 Joker & Wild LLC
\nCase 8-3 QSGI, Inc.
\nCase 8-4 Anjoorian et al.: Third-Party Liability
\nCase 8-5 Vertical Pharmaceuticals Inc. et al. v. Deloitte & Touche LLP1
\nCase 8-6 Kay & Lee, LLP
\nCase 8-7 Alexion
\nCase 8-8 Disclosing Material Weaknesses in ICFR or Protecting the Firm from Litigation? (A GVV case)
\nCase 8-9 Miller Energy Resources, Inc.
\nCase 8-10 Biotechnologies
\nCases
\nIntroduction
\nMajor Case 1: Colonial Bank
\nColonial Bank
\nMajor Case 2: Logitech International
\nLogitech International
\nMajor Case 3: Kiley Nolan\u2019s Ethical Dilemma (a GVV Case)
\nKiley Nolan\u2019s Ethical Dilemma (a GVV Case)
\nMajor Case 4: Cendant Corporation
\nCendant Corporation1
\nMajor Case 5: Vivendi Universal
\nVivendi Universal
\nMajor Case 6: Luckin Coffee
\nLuckin Coffee
\nName Index
\nName Index
\nSubject Index
\nSubject Index
\nAdditional Student Resources
\nAdditional Student Resources
\nAccessibility Content: Text Alternatives for Images
\nRoad to Making Ethical Decisions Text Alternative (Chapter 2)
\nExhibit 2.1 Text Alternative (Chapter 2)
\nExhibit 3.1 Text Alternative (Chapter 3)
\nExhibit 3.10 Text Alternative (Chapter 3)
\nExhibit 3.16 Text Alternative (Chapter 3)
\nExhibit 1 Text Alternative (Chapter 3)
\nExhibit 4.3 Text Alternative (Chapter 4)
\nExhibit 6.6 Text Alternative (Chapter 6)
\nExhibit 7.1 Text Alternative (Chapter 7)
\nExhibit 8.7 Text Alternative (Chapter 8)<\/p>\n

William F. Miller,<\/strong><\/em> EdD, CPA, CGMA, is a professor of accounting in the Accounting and Finance Department at the College of Business, University of Wisconsin, Eau Claire. Dr. Miller received his EdD from the University of Saint Thomas, Saint Paul, Minnesota. He also has over 23 years of professional accounting experience and maintains an active consulting practice. He has authored or co-authored over 20 publications, including a book on Giving Voice to Values in Accounting, and has won the Institute of Management Accountants Carl Menconi Ethics Case writing competition three times (2011, 2012, and 2015), and won the American Accounting Association\u2019s Public Interest Section best contribution to teaching award in 2015.<\/p>\n

Steven M. Mintz,<\/strong> <\/em>DBA, CPA, is a professor of accounting in the Orfalea College of Business at the California Polytechnic State University\u2013San Luis Obsipo. Dr. Mintz received his DBA from George Washington University. His first book, titled Cases in Accounting Ethics and Professionalism, was also published by McGraw-Hill. Dr. Mintz has recently been acknowledged by accounting researchers as one of the top publishers in accounting ethics and in accounting education. He was selected for the 2014 Max Block Distinguished Article Award in the “Technical Analysis” category by The CPA Journal. Dr. Mintz received the 2015 Accounting Exemplar Award of the Public Interest Section of the American Accounting Association. He also has received the Faculty Excellence Award of the California Society of CPAs. Dr. Mintz writes two popular ethics blogs under the names \u201cEthics Sage\u201d and \u201cWorkplace Ethics Advice.\u201d<\/p>\n

What makes us different?<\/strong><\/p>\n

\u2022 Instant Download<\/p>\n

\u2022 Always Competitive Pricing<\/p>\n

\u2022 100% Privacy<\/p>\n

\u2022 FREE Sample Available<\/p>\n

\u2022 24-7 LIVE Customer Support<\/p>\n","protected":false},"excerpt":{"rendered":"

Trustpilot Ethical Obligations and Decision Making in Accounting: Text and Cases 6th Edition, ISBN-13: 978-1264135943 [PDF eBook eTextbook] \u2013 Available Instantly Publisher: \u200e McGraw Hill; 6th edition (February 11, 2022) Language: \u200e English ISBN-10: \u200e 1264135947 ISBN-13: \u200e 978-1264135943 This text provides comprehensive coverage of the ethical and professional issues that accounting professionals encounter, and helps students cultivate the ethical commitment needed to ensure that their work meets the highest standards of integrity, independence, and objectivity. Ethical…<\/p>\n","protected":false},"featured_media":40878,"template":"","meta":{"_links_to":"","_links_to_target":""},"product_cat":[14],"product_tag":[22401,22399,22400,22402],"class_list":{"0":"post-40877","1":"product","2":"type-product","3":"status-publish","4":"has-post-thumbnail","6":"product_cat-business","7":"product_tag-ethical-obligations-and-decision-making-in-accounting-text-and-cases-6th-edition","8":"product_tag-isbn-10-1264135947","9":"product_tag-isbn-13-978-1264135943","10":"product_tag-william-f-miller","12":"first","13":"instock","14":"sale","15":"downloadable","16":"shipping-taxable","17":"purchasable","18":"product-type-simple"},"yoast_head":"\n