Auditing Ethics Research Case Assignment
Deliverables and due dates:
The assignment: This semester you will research an audit ethics situation, write a report and present your findings to the class. The following is what is required for the paper and the presentation:
Paper:
1. Select an audit case from the list provided or select on that you prefer. Email me your selection and they will be assigned on a first come first served basis. If you want to select a case that is not on the list, you need to send me your request and I will review it to be sure it can fulfill the requirements. If it will work, I will let you choose a case that is not on the list.
2. Research the situation using internet resources like the SEC or PCAOB enforcement actions web pages. The listed cases will also have newspaper and journal articles available.
3. Describe the AUDITOR ethical situation you find. Keep in mind that many/most of these cases also have an ethical component related to the client's managers. The paper is to focus on the auditor ethics. Of course, you may need a brief explanation of what management did that created an ethical dilemma for an auditor. For example, management created a cookie jar reserve. The purposely non-GAAP financial statement in itself is an ethical problem on the part of the client. Certainly management's improper action is to be discussed briefly. The paper's main focus should be on what the auditors did about that cookie jar.
4. Research the Audit Standards that pertain to the situation. There may be several that apply.
Write up which standards apply and explain why they are appropriate to the situation.
5. Describe how the auditor did or did not follow the applicable standards.
6. Discuss any consequences the auditor experienced as a result of any ethics lapse.
7. Explain what an auditor should have done and how this might apply to you in the future as an audit professional.
8. Your paper should be 3 - 5 double spaced pages. Use normal font and margins.
9. Also upload the paper to Blackboard
Presentation:
1. Prepare a PowerPoint presentation based on your research.
2. There should be about 5 slides.
3. Use the presentation as an opportunity to help your classmates benefit from the mistakes of others. Briefly explain the situation, then applicable standards and how you and your classmates will appropriately apply ethics standards.