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ACCTG 530 Accounting Ethics Essay

Instructions:

There are only two (2) short answer/essay questions to follow, but each is likely to have sub-components. Each question is assigned a certain number of points, for a total of 100 points. Answers will be scored on (1) correctly identifying the issue(s), (2) referencing appropriate rules or authority when called for, and (3) most importantly, thorough and complete analysis. When possible, you should make assumptions to keep your analysis going. If there are differences in the rules under the AICPA Code, California rules, or other laws, you should address any similarities or distinguish any differences.

*****FACTS are attached

*****The lecture slides are attached:

Essay questions on:

QUESTIONS:

1) Identify all ethical issues faced by the following individuals, discuss the applicable rule(s) that govern their behavior for each issue, and analyze if they acted ethically or not:

Albert Abba [15 Points]
Bob Bibb [5 Points]
Daisy Dadd [15 Points]
Eve Ee [20 Points]
Hannah Hohh [10 Points]
Tobby Tutt [10 Points]

2) Does ADH, LLP have the independence to audit either Igloo Corporation? Explain why or why not, making suggestions for any precautionary measures ADH, LLP might take if they continue auditing them. [25 Points]

 

ETHICS IN ACCOUNTING (ACCTG 530) Spring 2023 Kevan P. McLaughlin Course Structure 1. Theories and Philosophies ▪ Ethical Modeling and Decision Making 2. Practical Matters ▪ Ethical “Laws” and Other Applicable Rules ▪ Audit ▪ Tax PART 1: Theories & Philosophical Foundations Let’s Try to Answer These Questions: 1. What is “ethics”? 2. Why do we care? 3. Where does “ethics” come from – where do we get it? 4. Why do [we] behave unethically? “Ethics” and “Morality” [Greek] ETHIKO S MORALI S [Latin] ETHICS MORALITY Introduction to the Theoretical 1. What is “ethics”? When we say something, or someone, is “ethical,” what does that mean? o “Ethics has to do with what my feelings tell me is right or wrong.” o “Ethics has to do with my religious beliefs.” o “Being ethical is doing what the law requires.” o “Ethics consists of the standards of behavior our society accepts.” o “I don’t know what the word means.” What is “ethics” 1. Self 2. Good 3. Other Hypothetical: Dead & Dying Friend Upon arriving by car to deliver medicine to a sick friend, you are frustrated that all the nearby metered parking spaces are filled. You notice that the parking lot of a nearby supermarket is only about half filled and do not see any “Customer Parking Only” signs posted. Your friend urgently needs to ingest the medication. Hypothetical: Dead & Dying Friend Is it ethical for you to park in the supermarket’s lot? NO YES Return to Introduction and Theory 2. Why do we care? Why do we want to be “ethical,” or study the topic? Return to Introduction and Theory 3. Where does “ethics” come from? Where do we get it? Inherent behavior, ethics, moral, or legal? Intro to Codes and Regulatory Frameworks 1. State Law [State] o California Business and Profession Code (“B&P”) o California Board of Accountancy Regulations (“CBA”) 2. American Institute of Certified Public Accountants (“AICPA”) [Prof’l Ass’n] 3. Internal Revenue Code (“IRC”) [Federal] Intro to AICPA Code of Conduct The code is divided into two sections: 1. Principles: are aspirational statements that form the foundation for the Code’s enforceable Rules of Professional Conduct. Principles are expectations but are not legally binding. 2. Rules: enforceable applications of the Principles Intro to AICPA Code of Conduct Principles: 1. Responsibilities 2. Public Interest 3. Integrity 4. Objectivity and Independence 5. Due Care 6. Scope and Nature of Services Exercise: Procrastinator A CPA needs to satisfy state continuing education requirements each year to preserve her license to practice. Due to procrastination, she waited until the last minute to fulfill this requirement. She is a busy controller for a growing company and knows that the course administrators take attendance only at the start of the morning session and the start of the afternoon session. She goes to each sign-in period and then immediately leaves to go back to the office, skipping the program. What principles of the Code of Professional Conduct did she violate? Return to Introduction and Theory 4. Why do we break from our “ethics”? And when, if ever, is it okay? Exercise: Charge it, Baby! Is it ethical to use a company credit card to make an online Internet purchase if you will reimburse your employer? NO YES Exercise: A good flush beats a full house When a successful plumber came to your home to perform a repair, he told you that his fee was $90 if you pay with a credit card or $85 if you pay with cash. Exercise: A good flush beats a full house Does this situation raise any ethical issues? NO YES Exercise: A good flush beats a full house Would it raise any ethical issues if the cash price had instead been $65? NO YES Exercise: General Ethics Issues A well-regarded accounting firm has a policy of giving a $1,000 commitment fee to brilliant freshman accounting majors if they agree to not interview with named competitor firms while they are still enrolled in school. Exercise: General Ethics Issues Is the firm’s policy ethical? NO YES Ethical Principles and Reasoning How can we view ethical decisions? 1. Ethical Absolutism 2. Ethical Relativism • Situation Ethics, • Subjectivism, • Conventionalism. Do these provide a foundation to break from ethics in different ways, or times? Exercise: Los Pollos Hermanos To treat chickens more humanely, Californians voted by popular referendum to enact a law requiring minimum cage sizes for egg-laying chickens. Other large egg-producing states, such as Iowa, Nebraska, and Alabama, have not enacted such laws. a. Is the minimum size of an egg-laying hen’s cage an ethical issue? NO YES Exercise: Los Pollos Hermanos c. Is the difference in laws between California and egg-producing states evidence of ethical relativism? NO YES Exercise: Los Pollos Hermanos d. California also enacted a law that provides that all eggs sold in California must be laid by hens living in cages that meet or exceed California’s standards. Does California have the right to try to impose its ethical views on other states’ citizens? NO YES Was California’s motive for enacting this law solely attributable to ethical concerns? NO YES Exercise: Los Pollos Hermanos e. Because eggs are an inexpensive source of protein, an increase in the price of eggs would primarily affect low income consumers. Does the fact that an increase in the price of eggs might harm low-income members of society affect your viewpoint? NO YES Exercise: Legality Versus Ethicality Determine whether the following are legal, ethical, both, or neither: a. After graduating from college, you now have the opportunity to work as an unpaid assistant to a famous Hollywood director during the production of his new film. You are excited to accept this opportunity because you will gain invaluable experience and connections in the movie industry. A friend, however, recently questioned whether your unpaid endeavor will violate minimum wage or other labor laws. Exercise: Legality Versus Ethicality b. A bank headquartered in Dallas, Texas recently hired three new employees from across the country to join its Real Estate Credit Analysis Department. At the time that the bank hired these employees, it knew that it would retain only one of these employees after “trying them out” for one month. The bank also knew that, under Texas law, employment contracts are terminable at will by an employer. The employees moved to Dallas and signed one-year apartment leases in the expectation that their jobs would be ongoing. c. When new consumer electronic devices are introduced for sale, an investment fund buys one at the earliest possible moment and then has engineers break it open. These engineers then advise the investment fund about the names of the suppliers who provide the component parts. The investment bank uses this information to increase its investments in these supplier companies in anticipation of them reporting greater sales. Exercise: Legality Versus Ethicality A CPA firm wants to gain a competitive recruiting advantage over its peers. Its lead recruiter has started giving $2,000 signing bonuses to brilliant 18-year-old high school graduates who plan to major in accounting during their upcoming college years. In return for these bonuses, students must agree that, if they decide to join the accounting profession upon graduation, they must accept employment with this CPA firm. This CPA is highly reputable and social media sites confirm that it pays its employees “top dollar.” If bonus recipients attend information sessions for other CPA firms or interviews with other firms while in college, their offer of guaranteed employment with this firm terminates. Is this CPA firm’s policy legal? Or ethical? Exercise: Wolverines Attack The University of Michigan Consumer Sentiment survey is a widely watched index that serves as a barometer of economic activity. Within seconds after this index’s monthly public release, stock markets routinely move significantly. Unknown to the general public, the University of Michigan was collecting a minimum of a million dollars annually for releasing the headline results to select investment firms before the general public announcement occurred. 1. Was this legal? 2. Was this or ethical? Ethical Principles and Reasoning Are there other ways to categorize “ethics”? 1. Consequentialism – separates right and wrong actions by focusing on the consequences of those actions. a) Utilitarianism o Act-Utilitarian • Examines the specific action itself versus rule • Sets aside the rule only if increase in net utility to all stakeholders o Rule-Utilitarian • Basis behavior on rules designed to promote the greatest utility • Maximizes intrinsic value Ethical Principles and Reasoning 2. Deontology a) Universality Principle (Formula of Universal Law) ▪ Duty no Physical Harm ▪ Duty Respect Other’s Privacy ▪ Duty to Respect Others’ Right of Free Ass’n ▪ Duty to Honor Others’ Property Rights ▪ Duty to Treat Equals Equally, with Justice for All ▪ Duty to Tell the Truth b) Reversibility Principle (Formula of Humanity) Hypothetical: Oh Captain, my Captain Teacher 1 – teaches her class well because she knows that her salary, tenure, and lifestyle depend on her teaching a successful class. Teacher 2 – teaches her class well because she thinks that it’s her duty to teach successful classes. What might John Stuart Mills (consequetialism) have to say? What might Immanuel Kant (deontology) have to say? Exercise: Core Principles “If you really want to do the moral thing, sell most of your worldly possessions, and give the proceeds to those starving in impoverished countries.” Would utilitarians agree or disagree with this statement? DISAGREE AGREE Would deontologists agree or disagree with this statement? DISAGREE AGREE Exercise: Greater Good? X is an ill-tempered man who did not commit a crime and does not want to go to prison. Y, a mild-mannered taxi cab driver, did commit the crime, but he also does not want to go to prison. Ten people believe that X, the innocent man, committed a crime and are very afraid of him. These same ten people are not fearful of Y, even though he actually is the guilty man. The government has decided that it will imprison innocent man X, not Y. Exercise: Greater Good? a. From the perspective of utilitarianism, was the government’s act ethical? NO YES b. From the perspective of deontology, was the government’s act ethical? NO YES Exercise: Call me Ishmael In the late 1800s, three individuals were shipwrecked and stranded in the ocean. To survive, they decided to kill the weakest member of the ship’s crew, eating his flesh and drinking his blood. If they had not done so, all four passengers on the ship, including the one who was killed, would have died from lack of food and fluids. Exercise: Call me Ishmael Was the decision of the three individuals who survived ethical? NO YES Exercise: Business Applications To qualify for a working capital loan, a bank requires loan applicants to satisfy a specified debt-to-equity ratio. After reviewing your employer’s trial balance, you realize that the company had insufficient owners’ equity to meet bank requirements. You consider the bank’s ratio rules to be unnecessarily strict, so you intentionally increased company owners’ equity by capitalizing maintenance costs that should have been expensed. Exercise: Business Applications If the company fails to obtain the loan, you fear that a wonderful colleague will be laid off and become unable to afford his child support payments. Furthermore, if the company obtains the loan, you are “100% certain” that it will be able to make all required interest and principal payments. From the viewpoint of consequentialism, were your actions ethical? NO YES Exercise: The “Trolley” Problems While standing on a pedestrian bridge above trolley tracks, you notice that a runaway trolley will kill five people if the trolley continues unimpeded on its present course. A “large” man next to you is leaning slightly over the side railing of the pedestrian bridge. If you push the “large” man onto the tracks below, he will die, but his body will stop the trolley from striking others. Exercise: The “Trolley” Problems Should you push the “large” man? NO YES Return to Principles and Philosophy What other theories exist to help define “ethical” behavior? 1. Distributive Justice a) Aristotle b) John Rawls o Liberty Principle o Difference Principle 2. Egoism (Teleology) • Enlightened Egoists Return to Principles and Philosophy 3. Virtue Ethics Virtues Virtues are attitudes, dispositions, habits, or character traits that enable us to be and to act in ways that develop into “good” members of humanity. 6 Pillars of Character 1. Trustworthiness 2. Respect 3. Responsibility 4. Fairness 5. Caring 6. Citizenship 1. Trustworthiness Trustworthiness: being honest, acting with integrity, being reliable, and exercising loyalty in dealing with others. – Honesty: is the most basic ethical value and means that we should express the truth as we know it and without deception. – Integrity: strength and courage of ones convictions. – Reliability: following through with ones promises/commitments. – Loyalty: not violating confidence placed in us. 2. Respect, 3. Responsibility, and 4. Fairness o Respect: treating every individual with dignity. The golden rule encompasses respect for others through notions such as civility, courtesy, decency, dignity, autonomy, tolerance and acceptance. o Responsibility: the ability to reflect on alternative courses of action, persevere and carry out moral action diligently. o Fairness: treating others equally, impartially, and openly. “Fairness implies adherence to a balanced standard of justice without relevance to one’s own feelings or inclinations.” 5. Caring and 6. Citizenship o Caring: The essence of caring is empathy. Empathy is the ability to understand, be sensitive to, and care about the feelings of others. Caring and empathy support each other and enable a person to put herself in the position of another. This is essential to ethical decision making. o Citizenship: “citizenship includes civic virtues and duties that prescribe how we ought to behave as part of a community.” An important part of good citizenship is to obey the laws, be informed of the issues, volunteer in your community, and vote in elections. Virtue Ethics Other Important Virtues o Fortitude o Generosity o Self-respect o Good temper o Sincerity Bad Character Traits (i.e., Vices) o Cowardice o Insensitivity o Injustice o Vanity Criticisms of Virtue Ethics 1. How do you get it? 2. Whose to say which “virtues” are right? 3. Does it give exact guidance? 4. Self-centered Ethics at the Entity Level 1. Economic System (Macro Level) 2. Organizational (Meso Level) 3. Intra-Organizational (Micro Level) Ethics at the Entity Level 1. Shareholder Theory 2. Stakeholder Theory 3. Corporate Social Responsibility (“CSR”) Exercise: Chilly Chile In the aftermath of an earthquake in Chile, a large wireless phone company did not charge people for two weeks to make phone calls. This allowed customers in affected regions to let their loved ones know that they are safe. Exercise: Chilly Chile a. Was this an act of corporate social responsibility? NO YES b. A few days later, the other major phone company in Chile decided to match this same policy. Was this an act of corporate social responsibility? NO YES Establishing an Ethical Culture 1. Establish clear policies on ethical conduct including a code of ethics. 2. Develop an ethics training program. 3. Assign top-level officers to oversee compliance with ethics policies. 4. Use internal auditors to investigate if ethics policies have been followed. 5. Establish strong internal controls to prevent and detect unethical behaviors. 6. Establish whistle blowing policies. 7. Establish an ethics hotline 8. Have employees sign a statement that they have complied with ethics policies. 9. Reward ethical behavior. Theoretical Modeling & Ethical Decision Making Process Return to Introduction and Theory 4. Why do we break from our “ethics”? When, if ever, is cheating okay? Why did they do it? Can we predict cheating behavior, in essence be able to stop it? Becker’s Model Cheating will occur if: Probability of Detection Expected Value of Benefits Expected Magnitude of Punishment Expected Problem Set: The Moose “Moose” McMonster, a large but slow defensive football linebacker, was guarding a fast wide receiver. When “Moose” saw that the receiver was highly likely to run past him and catch a touchdown pass, “Moose” deliberately impeded the receiver’s path by grabbing his arm. The referee imposed a standard 15-yard Interference penalty on the defensive team, but the quick reaction by “Moose” prevented the opposing team from scoring. Problem Set: The Moose a. Was “Moose” McMonster’s move consistent with the Becker Rational Model? NO YES b. Was “Moose” a cheater? NO YES Exercise: Hey, Big Spender! Before exiting a restaurant, it is customary to leave a tip equal to about 15% of the price of your meal. Although patrons are not legally required to leave a tip, virtually all customers do so. A traveler was driving through a town and never intended to visit a particular restaurant again. Nonetheless, she left an 18% tip for her food server. Exercise: Hey, Big Spender! Was her decision to tip consistent with the Becker Rational Model? NO YES Exercise: Change for the Reward? After finding a lost purse, you kept a small portion of the money in the purse, but not all of it, before returning the purse to its rightful owner. No one noticed you finding the purse, so no one would have ever discovered that you had possession of this lost purse. Was your behavior consistent with the Becker Rational Model? NO YES Exercise: Change for the Reward 2! When you found a lost purse, several of your work colleagues noticed that you found it. You took the purse to your office, closed the door, and took a small portion of the money in the purse, but not all of it. Then, you returned the purse to its rightful owner. Is this behavior consistent with the Becker Rational Model? NO YES Kohlberg Model Level 1 – Pre-conventional Stage 1 – Obedience to Rules; Avoidance of Punishment Stage 2 – Satisfying One’s Own Needs Level 2 – Conventional Stage 3 – Fairness to Others Stage 4 – Law and Order Level 3 – Post-conventional Stage 5 – Social Contract Stage 6 – Universal Ethical Principles Rest’s Four-Component Model 1. Moral Sensitivity 2. Moral Judgment 3. Moral Motivation 4. Moral Character Jones Issue-Contingent Model 1. Magnitude of Consequences 2. Temporal Immediacy 3. Social Consensus 4. Proximity 5. Probability of Effect 6. Concentration of Effect Kidder’s Ethical Checkpoints 1. Recognize that there is a moral issue. 2. Determine the actor. 3. Gather the relevant facts. 4. Test for right-versus-wrong issues. 5. Test for right-versus-wrong paradigms. 6. Apply the ethical standards and perspectives. 7. Look for a third way. 8. Make the decision. 9. Revisit and reflect on the decision. Bribery & Corruption Bribery & Corruption “To consider what accountants ought to do about fraud, deception and dishonesty, to ask about the kind of persons accountants out to be and the types of decisions they out to make: these are the issues of morality and ethics.” 1. Official Bribery 2. Commercial Bribery 3. Facilitation Payment “Fakelaki” Bribery What are “bribes,” if we had to define it? Problem Set: Friends of Angelo Prior to its demise, Countrywide Mortgage was one of the largest mortgage originators and loan servicers in the United States. Its top executive, Angelo Mozilo, offered mortgage loans to key government officials and Congressmen at rates that were lower than the rates charged on identical loans to the general public. These loans were called “Friends of Angelo” loans. Problem Set: Friends of Angelo Was this ethical? NO YES Was this a crime? NO YES Foreign Corrupt Practices Act (“FCPA”) Leading attempt to combat bribery Passed in 1977 Contains 2 Provisions: 1. Anti-Bribery Provisions 2. Accounting Provisions FCPA Anti-Bribery Provisions General Rule: Prohibits individuals and businesses from bribing (offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value) foreign governmental officials in order to obtain or retain business. Applies to 3 categories: 1. “Issuers” 2. “Domestic Concerns” 3. Other, Jurisdictional Actors “Issuer” General Rule: A company who has a class of stock registered on a U.S. exchange, OR a company who has to register/report to the SEC. FCPA applies to the “issuer’s” officers, directors, employees, agents, and shareholders. Ethics in Accounting ACCTG – 530 FINAL Spring 2023 INSTRUCTIONS: There are only two (2) short answer/essay questions to follow, but each is likely to have sub-components. Each question is assigned a certain number of points, for a total of 100 points. Answers will be scored on (1) correctly identifying the issue(s), (2) referencing appropriate rules or authority when called for, and (3) most importantly, thorough and complete analysis. When possible, you should make assumptions to keep your analysis going. If there are differences in the rules under the AICPA Code, California rules, or other laws, you should address any similarities or distinguish any differences. The exam is open note, open book, etc. Avoid the temptation to copy-and-paste material – answers will be scored primarily on your thorough and complete analysis. Please submit your answers through Canvas. Exams must be turned in before Midnight on Monday, May 8, 2023. Good luck! FACTS: Albert Abba, Daisy Dadd, and Hannah Hohh are all California Certified Public Accountants (“CPA”)’s operating in an accounting partnership named “ADH, LLP.” Albert, Daisy, and Hannah each own 1/3 of the partnership interests in ADH, LLP. In addition to Albert, Daisy, and Hannah, ADH, LLP has the following employees (all of whom are CPA’s themselves): • • • • Bob Bibb (Manager) Eve Ee (Manager) Louie Lull (Manager) Tobby Tutt (Staff Accountant) ADH, LLP has one office located in San Diego, California; however, they allow all partners, managers, and staff to work remotely whenever, and from wherever, they want. ADH, LLP provides tax and audit services to a wide variety of clients in diverse industries throughout the United States. The following events took place in 2022. In January, Tobby struck up a relationship with Angela Abba (Albert’s wife) after the two met at a holiday party a few months before. The relationship quickly escalated, and the two began to have an affair, regularly meeting up behind Albert’s back to spend long romantic weekends in Los Angeles. On one such romantic getaway, Angela began bragging to Tobby about how the company she worked for had a secret plan to forever revolutionize the way ice machines worked for the hospitality industry. She projected that once her company launched the new secret invention it would become the most profitable, largest, and dominant force in ice manufacturing in the world. Once she can sell her stock options for a hefty profit, Angela promised to leave Albert and run away with Tobby. In February, Daisy was tasked with finding a new employee for the firm. Two licenses CPA’s, Katherine Kim and Caleb Crawford, were offered interviews with Daisy for the job with ADH, LLP. During the Katherine’s interview, she and Daisy had the following exchange: Daisy: “What would make you a valuable member of my team?” Katherine: “Well…I’m very hard working, I have 5 years of audit experience, and I bring a level of diversity that I think your firm is missing.” Daisy: “What!?!?!? What could my amazing firm be missing?” Katherine: “I’m gay, and it appears that nobody else on your staff is. That could be an advantage to ADH, LLP.” Annoyed – not at Katherine being gay but at her statement that ADH, LLP was missing anything at all – Daisy decided not to hire her. The very next day she interviewed Caleb during which the following exchange occurred: Daisy: “What would make you a valuable member of my team?” Caleb: “I’m very hard working, I have 6 years of audit experience, and I love your jewelry.” Daisy: “Well that’s so kind of you! We at ADH pride ourselves at being a tight family. Is there anything about you that I should know before we decide?” Caleb: “It shames me to admit it, but I’m a convicted felon. When I was 19 years old, I was in a bar fight and knocked the bouncer out. I’m not proud of my action. I feel that I’ve done my time and that is all behind me now.” Daisy was appalled at Caleb’s felony conviction. Because of that she decided not to hire him, but what Daisy did not know at the time was California had recently passed a law making it illegal to discriminate against a former felon in the workplace. In March, Eve was approached by one of ADH, LLP’s long-time audit and tax clients, Otto Ot. Otto’s company sells medical supplies in the United States and around the world, and his only office is located in Orange County, California. In 2022 he thinks he’s hit it big because his company received the exclusive rights to sell a ground-breaking drug that will forever cure Dengue Fever, an unpleasant virus spread through mosquito bites. Otto tells Eve, “Hey, look. You and ADH have been so good to me over the years I’d like you to join me on a little trip to Costa Rica. I’ve gotta meet some clients, do a little business, but mostly we can sit on the beach and enjoy some cool drinks and warm water. What do you say? My treat…” Eve hesitates, but eventually agrees to go with Otto to Costa Rica. Most of the trip was relaxing, but on the third day of the five-day trip, Otto asks Eve to accompany him to a business meeting with Gloria Garcia, the head of procurement for “Caja Costarricense de Seguro Social,” Costa Rica’s government run healthcare program. During the meeting with Eve, Otto, and Gloria, the following exchange occurs: Otto: “Thanks for meeting us, Gloria. I’m really excited to offer Costa Rica access to this new groundbreaking drug. How much would you like to buy?” Gloria: “I don’t know Otto. There are other competitors to your product on the market that are more cost efficient… I don’t know if Costa Rica is ready to make such a large investment.” Otto: “Come on. This drug is perfect for you! Just ask my accountant.” Eve: “It’s true. Otto is a very upstanding businessman. I’ve known him for years and have been on his audit team for the last four. If he says the product is great, I fully endorse his statements.” Gloria hesitates. That’s when Otto pulls out of his jacket pocket a large wad of $100 bills. Eve couldn’t tell how much was there, but it must have been thousands of dollars. Otto passes the cash to Eve with a wink and a nod of the head towards Gloria. Eve takes the money, hands it to Gloria, who quickly puts it in her purse. Gloria stands up and responds: “Otto, you’ve got yourself a deal!” Elated by the sale Otto and Eve enjoy a night on the town. A few days after their return to the United States Otto is so grateful for Eve’s assistance, he sends her a $50 bottle of wine to ADH, LLP’s office with a note that says, “Thanks! You’re the best!” In April, Hannah was working on the audit of Zygen Corporation when several events occurred. First, Zygen Corporation was working on a joint venture with another company, Alpha Corporation, not represented by ADH, LLP. One day the CFO of Alpha Corporation called Hannah and said that he wanted a copy of Zygen Corporation’s secret patent material used to manufacture a type of building siding material. Alpha Corporation’s CFO said the information was critical to the joint venture they were contemplating, and Zygen Corporation’s CEO said Hannah was the best source of that data. Hannah was told it was urgent, and the Zygen Corporation’s CEO was currently out of town or would have sent it himself. Hannah knew how important the joint venture was to her client, Zygen Corporation, and tried to call the CEO to confirm it was okay provide the patent material to Alpha Corporation’s CFO. Zygen Corporation’s CEO did not answer, and all Hannah got was a voicemail recording that said, “I’m currently out of the office, but if you need anything, my outstanding accountants at ADH, LLP can handle any requests.” Thereafter Hannah emails all the patent material to Alpha Corporation’s CFO. Second, ADH, LLP received an official looking request from the Internal Revenue Service (“IRS”) informing them that Zygen Corporation was being audited. The letter requested copies of all Zygen Corporation’s tax accrual workpapers, the building siding material patent, and all internal communications within ADH, LLP about Zygen Corporation. Working quickly, Hannah compiled all the items in the letter and mailed it to the IRS within three days. In May, Tobby was asked to help Daisy with a tax issue for one of ADH, LLP’s clients, Igloo Corporation. Igloo Corporation is a small, publicly traded, ice distributor located in Denver, Colorado. Tobby spent five hours working on a depreciation issue for Igloo Corporation but nothing more. In June, Albert decides to diversify his offerings and gets a California Real Estate license. He soon approaches several clients asking if he, in addition to being their accountant, can help them sell their home. After all, this was a very hot real estate market. One client in particular, Franz Fisher, takes Albert up on the offer. The two meet for coffee and Albert verbally tells Franz he would reduce his commission on the sale to 1%, down from the industry standard of 2.5%. The two shake hands and nothing more, and within a week Albert sells Franz’s home and escrow closes. With the funds from the sale of his house, Franz gifted $100,000 to his son, Mark Fisher. Mark is not a savvy investor, so he approached his old college roommate, Tobby Tutt, for advice. Tobby tells Mark about a secret new invention some ice manufacturing company is developing. If Mark were to invest now, it would be worth a whole lot more after the launch. Grateful for the advice, Mark buys Tobby a beer. Mark looked around and discovered through his own efforts Igloo Corporation was a leader in ice manufacturing, and subsequently invested the $100,000 from Franz by buying 12,000 shares of Igloo Corporation. In July, Louise Lull alone begins working on the audit of Igloo Corporation. Igloo Corporation’s Controller, Angela Abba, has always enjoyed working with Louise and was her main point of contact throughout the engagement. Louise performs all work on the Igloo Corporation engagement from her home office in rural Idaho after moving there two years ago. In fact, since COVID, Louise has never returned to ADH, LLP’s physical office in San Diego, California. In August, Zygen Corporation’s CEO learned that Hannah provided the patent material to Alpha Corporation’s CFO and the IRS without his knowledge. Angry about what he believed was a betrayal, Zygen Corporation fires Hannah and ADH, LLP. Zygen Corporation also requests ADH, LLP and Hannah immediately provide them any and all records in their possession about Zygen Corporation. In November, Bob meets with Albert, Daisy, and Hannah to discuss the firm’s fee structures. Bob believes ADH, LLP isn’t charging their tax clients enough. ADH, LLP is on the cutting edge of reporting complex cryptocurrency transactions, something many of their clients have. Bob proposes ADH, LLP begin charging clients with these complex cryptocurrency transactions 2,000% more than ADH, LLP’s current fee structure, which would put them well above anyone else in the industry. Part of Bob’s justification for the fee increase is the amount of time ADH, LLP had already invested in understanding these types of cases, which was very significant in 2021. Bob also proposes that for any new clients the firm will prepare amended tax returns, if needed for these complex cryptocurrency transactions, without any upfront fees. Instead, clients who have ADH, LLP prepare those amended returns will pay half any refund to ADH, LLP for their services. Albert, Daisy, and Hannah love the plan and adopt the fee structure for the next year. QUESTIONS: 1) Identify all ethical issues faced by the following individuals, discuss the applicable rule(s) that govern their behavior for each issue, and analyze if they acted ethically or not: • • • • • • 2) Albert Abba [15 Points] Bob Bibb [5 Points] Daisy Dadd [15 Points] Eve Ee [20 Points] Hannah Hohh [10 Points] Tobby Tutt [10 Points] Does ADH, LLP have the independence to audit either Igloo Corporation? Explain why or why not, making suggestions for any precautionary measures ADH, LLP might take if they continue auditing them. [25 Points]

JBH Project Plan

I’m working on a Health & Medical exercise and need support.

Competencies

  • Identify the role projects play in meeting the goals of an organization.
  • Explain the activities that occur when initiating a project.
  • Classify the components of project planning.
  • Evaluate project implementation techniques.
  • Evaluate project performance.
  • Distinguish project management methodologies and tools.

Scenario

You are a Senior Project Manager for JBH Software Solutions and are about begin on a new project and training a new associate at the same time. The scope of the project is a total system upgrade for the customer service area. The project has a budget of $15 Million and has a duration of 24 months for completion. Since you are the Senior Project Manager, upper management is looking to you for guidance and best practices for the project management lifecycle at JBH.

Instructions

Create a project plan for JBH Software Solutions that includes required documentation such as business case, risk mitigation plan, communication plan, scope statement, scorecard, and project timelines. Include details about methodologies and tools used to manage the project. Review the deliverables from prior modules as a guide to complete this assignment.

Classification of reactions lab

Need help with my Chemistry question – I’m studying for my class.

This is due midnight the 25th my time:) I wanted to give you a couple days heads up. As always, if you could add any pictures that show work as well that would be great! Any images can be looked up online and if pictures are needed that can’t be found let me know.

Learning objective: Observe the three types of chemical reactions discussed; precipitation, redox, and acid-base neutralization reactions.

Read the material in the text and watch the lectures.

Safety

  • This lab has been designed so that there are no safety concerns.

Materials

  • Epsom salts (Dollar store or your bathroom cabinet, grocery stores carry it but they have large bags)
  • Penny, minted after 1983
  • Sidewalk made of concrete or file
  • Vinegar
  • Red cabbage
  • Baking soda

Procedure

  1. Precipitation reaction
    • Dissolve soap in water. Use bar soap and not a detergent. The dissolved soap may be a little cloudy but you should be able to see through a cm of it. Make a saturated solution with epson salts. Epson salts can be found at those dollar stores. Add a spoonful to about 50 mL of water. If all of it dissolves, add a little more until some remains undissolved. The liquid with out the undissolved epson salt is a saturated solution.
    • Add a little bit of the saturated epsom salt solution to the soapy water and observe what happens.
  2. Redox Reaction
    • Find a penny minted after 1983. File away a portion of the edge until it is obviously silver (you can also scrape the coin on concrete or a rock). It can be a very small portion. Place the penny in small container with vinegar.
    • Closely observe the edge of the penny that was scraped to reveal the silver metal inside.
  3. Acid-Base neutralization reaction
    • Take a 3″ x 3″ leaf of red cabbage and blend it with a liter of water. Strain the purple liquid from the solids. This is an pH indicator. If you do not have a blender, you can boil a leaf and get the same colored solution. You may have to use a larger leaf.
    • Make about 50 mL of a saturated baking soda solution.
    • Use small portions for the following:
      • separate a portion of the solution into four containers. One container is the control (nothing will be added, so this is the color of the indicator with water)
        • Container 1 – control container, color of neutral solution.
        • Container 2 – add vinegar until the color doe snot change.
        • Container 3 – add the baking soda solution until the color does not change.
        • Container 4 – using about 10 mL of vinegar add some of the cabbage juice, enough cabbage juice so that the color is easy to observe. Add small portions of the the baking soda solution to the container. Make observations. Continue adding the baking soda solution until the liquid in the container matches the color of container 1 (the color in container 4 may or may not be darker than the color in container 1, but they should be the same color). If the color becomes like container 3, you can add small portions of vinegar.
        • Now have some fun. Make more containers of the cabbage juice and add different household substances to them (sugar, cleaning solutions, etc).

Assignment:

  1. What was observed when the saturated epsom salt reacted with the soapy water?
  2. What is the chemical formula of the substance in epsom salts? What is it reacting with?
  3. Write out the balanced chemical reaction for the reaction of the substance in epsom salts with the soapy water.
  4. What was observed when looking closely at the edge of the penny that was filed?
  5. The reaction with the penny was the zinc inside the penny with acetic acid (CH3COOH or CH3CO2H). The products are zinc acetate and hydrogen gas. Write out the balanced chemical reaction of zinc with acetic acid.
  6. The zinc/acetic acid reaction if a redox reaction. Assign oxidation number to the zinc (before and after it reacts), and the acidic hydrogen of acetic acid, and to hydrogen gas.
  7. Using all of these terms, oxidized, reduced, OIL, RIG, loses electrons, gains electron, reducing agent, and oxidizing agent. apply each the zinc reactant or to the acidic hydrogen of acetic acid.
  8. Describe the following:
    • Water and indicator
    • Water, indicator, vinegar
    • Water, indicator, baking soda solution
    • Vinegar, indicator, and changes as baking soda solution was added.
    • Your own investigations.
  9. You should have observed bubbling along with a color change when adding baking soda solution to the vinegar. Write the chemical reaction for the substance in baking soda that reacts with acetic acid in vinegar.

5306 – Discussion #3

Can you help me understand this Social Science question?

In discussion posts, I expect you to put the concepts into your own works, not simply quote from your textbook or quote from another source. I do however, encourage you to look for and bring in other sources! Respond to the following questions with a 200+ word reply per question, in your own words. Please number your answers to correspond with each question.

  1. In regard to the identified community problem “Homelessness”, What is the impact of this issue on the community? How is the community currently dealing with the issue? Are there currently supports in place regarding the issue (laws, organizations, etc.)?
  2. In regard to the Community Assessment Windshield Survey video, discuss and identify at least two major key findings within the community of Marinette, Wisconsin. A few things to consider when having your discussion could be gender, age, jobs, housing, stores, libraries. Look at the statistics listed. Ask yourself what are some of the problems or potential problems.

Highlighted and underlined are the questions for discussion.