Can you please help me write an accounting ethics case

• Write an accounting ethics case study outlining a scenario and ethical violations committed by a CFO, Comptroller, Auditor, or Tax Preparer/Advisor.
• Write five questions about the case that might be asked of a student studying the case. At least one of the questions should require the student to research either the AICPA Code of Professional Conduct or another accounting code of ethics that the person in the case should be following. At least one of the questions should ask them to propose two or three alternative choices the person at the center of the case might make and then ask them which is the best solution. At least one of the questions should ask them to apply one of the ethical theories we studied to the case.
• Answer each question thoroughly, providing detailed explanations and justifications based on accounting ethics principles, laws, and industry best practices.
• Present your case study and responses in a structured and professional manner, adhering to academic writing standards and citing sources appropriately.

You will be graded on a combination of ethical reasoning and writing quality. Feel free to use AI to help craft your case, but be sure any answers it helps you with are correct and appropriate, and remember you alone are responsible for the assignment.

Here i attached sample paper which should be like this,

Sample Accounting Ethics Case Study: Unraveling Financial Deception (Hint: Give your case a
title)
Scenario:
ABC Corporation is a mid-sized manufacturing company known for its innovative products.
Recently, the company’s financial statements have portrayed consistent growth and profitability,
attracting numerous investors and stakeholders. However, an anonymous tip-off raises suspicions
about potential accounting irregularities. Upon investigation, several discrepancies come to light.
The company’s CFO has been manipulating the financial records by overstating revenues and
understating expenses over the past three fiscal years. This fraudulent activity has artificially
inflated the company’s financial performance, leading to an inaccurate portrayal of its actual
financial health. The CFO’s actions have been motivated by personal incentives, including
substantial bonuses tied to meeting financial targets.
Questions:
1. Describe the unethical accounting practices conducted by the CFO at ABC Corporation. What
impact do these practices have on the company and its stakeholders?
2. Identify the key principles from the AICPA Code of Professional Conduct that the CFO
violated through their actions. Explain how these violations conflict with ethical standards in
accounting.
3. Discuss the role of corporate governance and internal controls in preventing and detecting
such fraudulent activities. What measures could have been implemented at ABC Corporation to
prevent this misconduct?
4. Apply the principle of utilitarianism to analyze the ethical implications of the CFO’s actions at
ABC Corporation. How might a utilitarian perspective assess the consequences of the CFO’s
fraudulent behavior on stakeholders and the broader society?
5. Jose Rosa is an employee in the accounting department who discovers the fraudulent activities
conducted by the CFO. What are the options available to Rosa, and what factors might influence
his decision on whether to report the fraud?
Answers:
1. The CFO engaged in fraudulent practices by overstating revenues and understating
expenses over three fiscal years. This deliberate manipulation of financial records
resulted in an inflated portrayal of the company’s financial performance. By
misrepresenting the figures, the CFO aimed to create a false impression of profitability
and growth. This deceitful conduct has severe implications:
a. Financial Misrepresentation: The misrepresented financial data creates a false
narrative of the company’s financial health, leading investors and stakeholders to
make decisions based on inaccurate information.
b. Investor Deception: Shareholders and potential investors were misled into
believing the company was performing better than it actually was, potentially
leading to investment decisions based on false premises.
c. Erosion of Trust: Such fraudulent practices erode trust in the company’s
management and financial reporting, impacting relationships with stakeholders,
including lenders, suppliers, and customers.
d. Legal and Reputational Damage: The discovery of these unethical practices can
result in legal repercussions, fines, and damage to the company’s reputation,
affecting its ability to attract investors and conduct business.
2. The CFO violated several principles outlined in the AICPA Code of Professional
Conduct:
a. Integrity: By intentionally manipulating financial records, the CFO breached the
integrity principle. Integrity requires accounting professionals to be honest and
candid in all professional dealings.
b. Objectivity: The deliberate misrepresentation of financial data compromised the
CFO’s objectivity, as objectivity demands that professionals maintain impartiality
and avoid conflicts of interest.
c. Professional Competence and Due Care: Falsifying records contradicts the
principle of professional competence and due care, as it requires accounting
professionals to perform their duties diligently and accurately.
d. These violations conflict with ethical standards by undermining the fundamental
principles that govern the conduct of accounting professionals, leading to
misleading financial information and eroding trust in the profession.
3. Corporate governance and robust internal controls play a crucial role in preventing and
detecting fraudulent activities:
a. Segregation of Duties: Implementing clear separation of duties within the
accounting and financial departments helps prevent one individual from having
unchecked control over financial transactions.
b. Internal Audits and Reviews: Regular internal audits and reviews can detect
inconsistencies and anomalies in financial records, providing an additional layer
of oversight.
c. Whistleblower Mechanisms: Establishing effective whistleblower mechanisms
encourages employees to report unethical behavior without fear of retaliation.
d. Ethical Training: Providing comprehensive training on ethical standards and the
consequences of fraudulent behavior can instill a culture of integrity within the
organization.
e. At ABC Corporation, these measures could have identified the misconduct earlier
and prevented its continuation, safeguarding the accuracy and reliability of
financial information.
4. Utilitarianism is an ethical theory that evaluates actions based on their consequences,
aiming to maximize overall happiness or utility for the greatest number of people.
Applying utilitarianism to the CFO’s actions yields several considerations:
a. Benefit to the CFO: From a utilitarian standpoint, the CFO’s actions might have
brought personal gain in the form of bonuses or increased prestige within the
company. However, these gains are outweighed by the negative consequences.
b. Impact on Stakeholders: The inflated financial performance might have
temporarily pleased shareholders and investors, leading to short-term gains.
However, when considering the broader impact, stakeholders such as employees,
suppliers, and customers are adversely affected. Misleading financial information
can lead to layoffs, reduced confidence in the company, and financial losses.
c. Societal Implications: Beyond the immediate stakeholders, the misrepresentation
of financial data can have broader societal implications. If such practices become
widespread, they could undermine trust in the financial system, impacting
investment decisions across various companies and markets. This erosion of trust
may lead to economic instability and harm to society at large.
d. Utilitarianism would likely condemn the CFO’s actions as unethical due to the
disproportionate harm caused to stakeholders and society compared to the limited
benefits gained. The net negative impact on the well-being of a larger group
outweighs any temporary gains for a few individuals, aligning with utilitarian
principles that prioritize the greatest good for the greatest number of people.
5. Jose Rosa faces a significant ethical dilemma upon discovering the CFO’s fraudulent
activities. Several options exist for Rosa:
• Reporting Within the Company: Rosa could choose to report the fraud to higher
management or the company’s audit committee internally. This action aligns with the
responsibility to maintain the integrity of financial reporting within the organization.
However, concerns about potential retaliation or fear of not being taken seriously might
deter this step.
• Seeking Legal or Ethical Advice: Another option for Rosa is to seek guidance from legal
counsel or professional ethics advisors. This approach allows for a better understanding
of whistleblower protections, ethical responsibilities, and potential consequences before
taking action.
• Whistleblower Reporting to External Authorities: If internal reporting channels seem
compromised or if there’s evidence of a cover-up, Rosa may choose to blow the whistle
to external regulatory bodies or law enforcement agencies. This step involves significant
risks but may be necessary to ensure the fraudulent activities are properly addressed.
The decision to report or remain silent can be influenced by various factors:
•
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Fear of Retaliation: Concerns about personal safety or professional repercussions might
deter the employee from reporting the fraud, especially if the company lacks robust
whistleblower protection policies.
Ethical Integrity: Rosa’s personal values and commitment to upholding ethical standards
in accounting may motivate him to report the fraud, despite potential risks. However, if
•
Rosa is a CPA, he may be bound by confidentiality rules that would suggest he needs to
keep reporting internal, such as notifying the audit committee, a whistleblower hotline, or
the external auditor.
Consideration for Stakeholders: Rosa might weigh the potential impact on stakeholders,
such as shareholders, employees, and customers, when deciding whether to report the
fraud.
In summary, the discovery of fraud presents Rosa with a complex ethical decision, considering
personal risks, ethical principles, legal implications, and potential impacts on stakeholders.