ACCOUNTING ETHICS SYLLABUS -
SUMMER 2009
(Updated 8/12/09)
ACCT450/650, Section
200: Accounting Ethics
Instructor Contact
Information:
Name:
Dr. L. Murphy Smith, CPA
Office:
460D Wehner
Office
phone: 845-3108
Internet: http://acct.tamu.edu/smith/
Email:
Lmsmith@tamu.edu
Office
hours: After class and other times
by appointment
Class
times MTWRF 2-3:35, Wehner
104
G.A. Contact Information:
Name:
James Cozby
Email: ga.drsmith@gmail.com
Required
Course Materials:
- Textbook: Corporate
Governance and Ethics by Zabihollah Rezaee, Johh Wiley & Sons,
Inc., 2009. ISBN: 978-0-471-73800-8.
- We will also be using
sections of the The Bottom Line is
Betrayal, which will be made available online or in the WCL.
July 6 Introduction
to Course.
July 7
Overview
of Accounting Ethics.
Discuss
Chapter 1: The Free Market System and Business.
Assign Teams.
July 8
Continue
Discussion of Chapter 1.
July 9
Video: Wall Street
Fix.
July 10
Quiz 1.
Case
Discussion/Textbook.
Discuss Chapter 3:
Business Ethics.
Week 2:
July 13
No Lecture: Meet with team and work on team project.
Begin work on role-play outline. Turn in outline at next class.
July 14
Quiz 2.
Case
Discussion/Textbook.
Discuss Preface, Chapter 2:
Corporate Governance.
*Turn in
outline for team project: role-play.*
July 15 Guest
Lecture on Whistle-Blowing, Fraud Detection and Ethics, Jerry Hays, CPA.
July 16
Exam 1:
Chapters 1-3 and lectures.
July 17
Review
Exam 1.
Bring a news story about a recent business financial scandal to class.
Meet with team and work on team project.
Week 3:
July 20
Guest Lecture on Business Ethics, Dr. Elizabeth Umphress, Texas A&M
University.
July
21
Quiz 3.
Case
Discussion/Textbook.
Chapter 4: Board of Directors.
Chapter 5: Board Committees.
July 22
Lecture
on Heroes and Villains.
Read and prepare a one-page summary of the following article (available
in WCL
and online:
A
Fresh Look at Accounting
Ethics (or Dr. Smith Goes to Washington).
July
23
Guest Lecture on CPA Profession, Texas
Society of CPAs, and ACAN program, Craig
Nauta, TSCPA.
July
24 Quiz 4.
Case
Discussion/Textbook.
Chapter 8: Internal
Auditors'
Roles and Responsibilities.
Chapter 9:
External Auditors' Roles and Responsibilities.
**This is the
last day that you can submit an outline and obtain
approval to do the
extra credit project.**
Week 4:
July
27 Exam
2: Chapters
4,5,8 & 9 and Lectures.
July
28 Quiz 5.
Case
Discussion/Textbook.
Discuss Chapter 12: Technology and
Corporate Governance.
July
29
Ethics Codes:
American Institute
of CPAs Code of
Professional
Conduct
Texas State Board of
Public
Accountancy Rules
of Professional Conduct
Article on SEC ethics rules
http://www.ethics.org/resource/corporate-ethics-and-sarbanes-oxley
Examples of Multiple-Choice
Questions
July 30
Quiz 6
Case
Discussion/Textbook
Discuss Chapter 15: Emerging Issues in
Corporate Governance
July 31
Video:
Smartest Guys in the Room.
*Today in class is the last
chance to turn in make-up work.*
Week 5:
Aug 3 Guest Lecture
on the COSO Framework, Jerry Hays, CPA.
Aug 4 No Lecture: Meet with
team
and work on team project.
Aug 5 No Lecture: Meet
with
team and work on team project.
Aug 6
All Team Project
Presentations
are Due Today.
Be sure to stick to the 10-minute time limit (going longer will result
in a penalty).
Be sure to use a video format that will play on our classroom
equipment.
We have a DVD player and Windows Media Player
on the PC. Turn in printed report and CD or DVD with project.
**Extra credit paper is due by class time today.**
Aug 7 Exam
3: Chapters
12 & 15, Ethics Codes, and Lectures. Results.
Week
6:
Aug
10 No
Class: Study for Final.
Aug 11 Comprehensive Final
Exam:3:30-5:30 pm (NOTE: NEW TIME). Results.
Note: The
schedule may change due to
speaker conflicts. Check the syllabus for updates.
PowerPoint Files:
Chapter 1
Chapter 2
Chapter 3
Chapters 4 and
5
Chapters 8 and
9
Chapter 12
Chapter 15
Course Policies
Course Description and
Learning
Objectives:
The
overall goal
of this course is to integrate ethical reasoning, integrity,
objectivity,
independence and other core values into your development as a
professional
accountant. Course learning objectives are as follows:
1. To be able to explain the historical relationship
between the accounting profession, business, and government.
2. To be able to describe the role of the public
accountant :
a. Public expectations
b. Sources of ethical guidance (AICPA, State Boards,
SEC, Sarbanes-Oxley, and PCAOB)
3. To be able to recount the ethical lapses which
have occurred in business and the accounting profession.
4. To be able to use models for ethical analysis and
decision making.
5. To integrate ethical behavior into your
professional and personal life.
6. To engage visiting speakers who offer their
perspectives on issues affecting the ethical development of
professional accountants.
This
course has
been approved by the Texas State Board of Public Accountancy to satisfy
the
requirement of a TSBPA approved three credit hour accounting ethics
course to
be eligible to sit for the CPA exam in Texas.
Grading:
The
success of
the course relies upon discussion and exchange of ideas where students
learn
from the different ideas expressed during class presentations. To foster this exchange, the class will be
divided into teams of about 4 students each..
Grades
will be
determined as follows:
Exams (includes final exam) 4 @ 100 points
each 400
Quizzes 6 @ 10 points
each
60
Participation, homework, in-class
projects
30
Team
Project - Role-Play
Presentation
60
Total points
550
Grading
Scale: 90-100% = A; 80-89% = B; 70-79% = C; 60-69% = D. Below 60% = F.
Please note, an extra credit project is available. If you think you
will need those extra points, then do the
project.
Extra Credit:
By preparing a term paper, you may earn up to 5 points of
extra credit (bonus points). You must get approval from Dr. Smith in
advance before starting this assignment (no later than midway through
the course).
Requirements: (1) Thoroughly research an ethics-related topic -- the
topic must be approved by your instructor. (2) Possible topic areas
include analyses of specific corporate financial scandals e.g. Enron,
reviews of corporate ethics codes, and how business ethics are
developed. (3) The report should include an introduction, major points,
analysis, and conclusion. (4) The report must include 8 to 10 pages of
double-spaced text, 2 to 3 tables/exhibits, a references page of at
least 12 references (journal articles, books, and Web sites referred to
in the paper). (5) The paper must be prepared in good form (The Accounting Review style). You
can follow the format for journal articles, online articles, and books
shown in the example
paper.
Participation
and Make-up Policy:
Attendance
is required. For
classes that you miss, points will be deducted from your participation
grade. However, you can make up points for classes missed by doing the following for each
class you miss: (1) Serve
as
a volunteer for at least 2 hours with an organization providing
opportunities for
volunteering (a list of acceptable organizations is on the Professional
Program
homepage). Please provide a form from
the organization that verifies your volunteer work or (2)
Prepare one-half page summaries of three ethics-related research
articles
(Website: Make-up
Points Assignment).
The
members of
the class will be divided into teams of about 4 students per team. Each team will be assigned various
tasks. A schedule for submission of team
activities will be provided.
Each team will be assigned to perform
the three following tasks for one of the guest speakers:
1. Ask at least one question per team during the
presentation
(assuming there is time for questions).
2. Prepare a team outline of the presentation –
submit via email to my G.A. and the Subject should be "Outline for
_________’s presentation" and is due by the next class period following
the presentation. Please put your team number and team member names at
the top of our outline.
3. Each team member will write a thank you note to
the speaker – one person on each team should collect the team's thank
you notes. That person must give the notes to me at the end of the
next class. Each note should be on acceptable
stationery, put your
return address on the envelope, and the Accounting Department
will
provide postage.
Mays Food & Beverage Policy:
We have beautiful
and state-of-the-art classrooms in
the Wehner Building. We want to maintain the high quality
of these
classrooms for the students in future years. Thus, it is necessary for
you to
adhere to the established policy of no beverages, food, tobacco
products, or
animals (unless approved) within the Wehner Building classrooms.
Your assistance is greatly appreciated.
Dress and Behavior:
Dress for seminar
meetings is
business casual when there is a speaker.
In addition, students should be most attentive during the
presentations. It is not appropriate to
read other materials or work on other projects during these seminars.
Ethics and Scholastic Dishonesty:
The accounting profession has a long-established reputation for
its high level of ethical conduct. The reputation reaches into
the
academic arena where the profession’s future leaders are being
prepared.
Consequently, accounting students are expected to conduct themselves in
a manner that is above reproach in their own course-related
actions.
Scholastic dishonesty is discussed in Honor Council Rules and
Procedures.
Dishonest acts include, but are not limited to: copying, sharing, or
obtaining
information from any unauthorized source during examinations, quizzes,
or other assignments; attempting to take credit for the intellectual
creation
of another person; falsifying information; giving information about a
test,
quiz or assignment to students in the same or other sections of the
course.
I believe in the Aggie honor code:
An Aggie does not lie, cheat or steal
or tolerate those who do.
Unless otherwise specified, all work is to be done
individually.
Scholastic dishonesty will not be tolerated. The full
consequences
of scholastic dishonesty will be pursued, consistent with university
policy
as it appears in the Honor Council Rules and Procedures (http://www.tamu.edu/aggiehonor).
For all assignments, I expect each student to be able to sign the
following statement:
"On my honor, as an Aggie, I have neither given nor received
unauthorized
aid on this academic work."
______________________________
Signature of student
Other Policies:
ADA statement: The Americans with Disabilities Act (ADA) is a
federal
anti-discrimination statute that provides comprehensive civil rights
protection
for persons with disabilities. Among other things, this legislation
requires
that all students with disabilities be guaranteed a learning
environment
that provides for reasonable accommodation of their disabilities. If
you
believe you have a disability requiring an accommodation, please
contact
Disability Services, visit http//disability.tamu.edu (http://disability.tamu.edu/)
, call 845-1637 or go to Cain Hall, Room B118. Please let me know if I
can be of assistance with any special needs; I will do everything that
I can to help all my students with their educational process.
Final exams: When a student is scheduled for three final
examinations
in one day, the student may request rescheduling of one of the three
examinations.
The dean, department head, and faculty member will make every
effort
to accommodate the student when a request is made.
TEAM PRESENTATION
PROJECT: ROLE-PLAY VIDEO PRESENTATION ASSIGNMENT:
Role-Playing Video Presentation: Teams of 6 to 10 students will be
assigned to develop an 8 to 10 minute role-playing presentation based
on characters, concepts, or situations related to corporate governance
and business ethics (you may base the presentation on a scene from the
book e.g. The Bottom Line is Betrayal).
Each team is required to submit a typed report and video of the
presentation. If obtaining a video camera for filming is a
problem, please see your instructor for special arrangements.
Your typed report should include the following: 1. aworking title of
the presentation (e.g. "My Trouble with the Foreign Corrupt Practices
Act"), 2. the group number and names of group members, 3. a "screen
play" of the presentation (including props to be used), 4. the goals of
the presentation (e.g. to show why ethics codes are important to
corporate governance), and 5. how these goals were achieved by the
presentation.
The key to effectively completing this assignment is proper planning.
Before the group begins filming, the script should be prepared and
rehearsed. Any necessary props should be obtained and
on-hand. Each member of the group should conscientiously fulfill
his or her part of the assignment. When filming, be sure to
include the title of the presentation and names of the groupmembers at
the beginning of the film (you can write this information on paper and
film it for 8 or10 seconds). Filming tips: Keep your light source above
or behind your subject. For better sound, avoid zooming in; instead,
bring your camera close to subjects. This will also highlight action
and facial expressions.
Prior to submission of the report and tape, an outline of the
presentation must be submitted. Thedate the outline is due is
shown on your syllabus. The outline should follow the same format
as the report, except the screen play does not have to be in a
word-for-word format but only in anoutline format. The report and video
will be graded by Dr. Smith. Also, the class will view and
evaluate the tape. Both report and video will be evaluated for
originality, creativity, drama/humor, technical accuracy(can you hear
it? can you see it?), and educational merit. The presentation should
stimulate interest in the subject matter through a more captivating
format than a simple lecture.
A final note: The film should receive a "G" or "PG" rating. Humor
(inoffensive) and actionare highly encouraged. Do not clip scenes
from TV programs or movies. Do not use names of real people (that
includes Dr. Smith); use only fictional characters.
STUDENT INFORMATION FORM
(Optional),
Word
File:
1. Name:
2. What's your background? (e.g. Where are you from?
or Why did you pick Texas A&M?)
3. Work Experience:
a. Auditing
Internship?
Yes No
b. Accounting work experience: (Briefly describe)
c. Other work experience: (Briefly describe)
4. Overall GPR: __________
5. Member of Beta Alpha Psi: Yes No
6. Career Interests:
7. Who's someone you admire? Why?
8. What's a movie or book you like? Why?
9. How do you define success?
10. Anything else you would like to tell me:
WHAT IS SUCCESS?
A popular story recounts a meeting that took place at the
Edgewater
Beach Hotel in Chicago in 1923. Attending this meeting were nine of the
richest men in the world at that time: (1) Charles Schwab, President of
the world's largest independent steel company; (2) Samuel Insull,
President
of the world's largest utility company; (3) Howard Hopson, President of
the largest gas firm; (4) Arthur Cutten, the greatest wheat speculator;
(5) Richard Whitney, President of the New York Stock Exchange; (6)
Albert
Fall, member of the President's Cabinet; (7) Leon Frazier, President of
the Bank of International Settlements; (8) Jessie Livermore, the
greatest
speculator in the Stock Market; and (9) Ivar Kreuger, head of the
company
with the most widely distributed securities in the world.
Twenty-five years later, (1) Charles Schwab had died in
bankruptcy,
having lived on borrowed money for five years before his death. (2)
Samuel
Insull had died virtually penniless after spending some time as a
fugitive
from justice. (3) Howard Hopson was insane. (4) Arthur Cutten died
overseas,
broke. (5) Richard Whitney had spent time in Sing-Sing. (6) Albert Fall
was released from prison so he could die at home. (7) Leon Fraizer, (8)
Jessie Livermore, and (9) Ivar Kreuger each died by suicide. Measured
by
wealth and power these men achieved success, at least temporarily.
Making
a lot of money may be an acceptable goal, but money most assuredly does
not guarantee a truly successful life.
Many people think of fame and fortune when they measure success.
However, at some point in life, most people come to realize that inner
peace and soul-deep satisfaction come not from fame and fortune, but
having
lived a life based on integrity and noble character. President Lincoln
put it this way: “Honor is better than honors.” At a Congressional
Hearing
on ethics in July 2002, Truett Cathy, founder of Chik-Fil-A, quoted
Proverbs
22:1: "A good name is more desirable than great riches; to be esteemed
is better than silver or gold." In the final analysis, living an
honorable
life really is more satisfying than fame and fortune. How do you
measure
success?
©June 21, 2003 (To use this short essay
or refer to this Web page, please cite the original article from which
this essay was a part, "Business
and Accounting Ethics" by Dr. Katherine T. Smith and Dr. L. Murphy
Smith. On August 1, 2007, this article was the first website listed,
out
of several million, after a Google search for "accounting ethics." ).