Giants & Jets Case Study

It would seem that the finance or bookkeeping department of any company faces the greatest number of ethical challenges because the opportunity to manipulate the accounting and misrepresent or otherwise take money from the company is ‘ever-present.’ However, there are opportunities for unethical behavior in all areas of a business – and in all businesses in the economy.

The “cooking the books” case study is intended to raise our awareness on an accounting issue that bankrupted firms and caused hundreds of employees to lose jobs. People are often challenged to make decisions on the business environment day-to-day. The contemporary companies often require following an ethical model when making these decisions. Strong decision making and business ethics can also help companies select the best business opportunities. The paper discusses a business ethic scenario and solutions to resolve the dilemma of recording unrecognized revenue under the generally accepted accounting principles (GAAP). The paper would outline steps to assess and address the problem

2016 was supposed to be a promising year for the New York Jets. Finishing 10-6 in 2015, basically bringing back the same roster with the addition of the rookie class and signing free agent Pro Bowl running back, Matt Forte, 2016 was supposed to be a playoff year. Well, as many people know, it was not. Ryan Fitzpatrick, the 2015 starting QB, decided to hold out for more money and would go ahead and miss all of minicamp. He would eventually sign his contract right before training camp and would be deemed the starter for the 2016 season.

Odell an 25 year old wide receiver which plays for the New York Giants. He wears #13 and is a Pro at what he does.He is getting warmed up for his first game back from preseason. Odell does passing routes, stretches, and talking to other players ,coaches, and coaching staff.Odell went for the pass, complete the pass, went down to the ground , and was hurt. Odell got up looked at the people his fans and waved goodbye, for a show of gratitude. He tried to get up, but he was severely hurt and was disappointed in himself because he just got back on a field because of a preseason game with injury. He got escorted off the field in a wagon/cart crying hard because of the pain. He went to the doctor and was still in pain, the doctor said it was

However, the application of SOX has brought on regulations that public companies must put in place and follow to prohibit these unethical occurrences. One major advantage for associated with SOX is that more thorough audits are being conducted by auditing firms. Audits being conducted more thoroughly will provide accuracy and an increased reliability of financial data. This will affect taxes in a positive way and provide firms with an advantage. Causholli, Chambers, and Payne (2014) suggest that prior to the implementation of SOX in 2002, “an auditor’s opportunity to sell additional non-audit services in the subsequent year, coupled with the client’s willingness to buy services, intensified the economic bond between auditor and client, in turn reducing auditor independence and the quality of financial reporting” (p.681). The regulation of auditor provided non-audit tax services has increased the reliability of tax and financial reporting within companies. Seetharaman, Sun, and Wang (2011) explain that “in a post-Sarbanes-Oxley environment, the benefits of auditor-provided non-audit tax services (NATS) seem to manifest themselves in higher quality tax-related financial statement management assertions” (p. 677).

Seidman addresses an IRS summons issued to an accounting firm for documents related to work the firm performed for a corporation under IRS investigation. Among the documents the IRS requested was a log containing the identities of investors in potentially abusive tax shelters. The investors petitioned to intervene and assert that revealing their identities was a violation of the tax advice privilege. The Seventh Circuit affirmed the district court’s denial of the investors’ claim, holding that the investors failed to show that confidential communications would be revealed if their identities were disclosed to the IRS. Because federal regulations require that accounting firms maintain

Based on Client Confidentiality and Fraud the limited nature of review assumptions, together with the American Institute of Certified Public Accountants' (AICPA) customer confidentiality guideline, puts the reviewer in the position of needing to pick between procuring a job or settling on a fitting moral decision. Expert codes for U.s. bookkeeping morals are more prohibitive than those of most expert affiliations, even those for which the customer specialist benefit is decently perceived. Also, the idea of bookkeeper customer benefit has never been underpinned by the government courts including various U.s. Incomparable Court choices, which neglected to discover such a privilege. Changes in expert norms in regards to confidentiality are important

The International Regulatory Services (IRS), is charged with the responsibility of administering and governing the USA federal regulations related to taxation. However, the US tax regulatory board is presently facing several issues that undermine the effectiveness of the relevant tax laws. The main aim of this paper is to discuss the IRS ethical issues and explain how to avoid them from an ethical and government point of view.

It is imperative for tax professionals to understand the ethics environment of the practice. This paper is focused on the ethical responsibilities of tax professionals.

The ethical issue/event that I will be analyzing occurred between Livent, which previously was a theatre company in the 1990’s and Deloitte who is their former auditor. Deloitte failed to detect fraud and have been ordered to pay damages to the company’s creditors. This case of fraud included improper and inaccurate financial statements that were signed by Deloitte. Livent were using these financial statements to solicit funds from creditors and investors; they had ‘cooked the books’ or overstated their earnings/understating their losses to depict their company as if they were financially strong. Creditors invested their money into Livent and had later suffered a great loss because the company ended

An auditor’s ethics might be challenged while preforming an audit in various ways. For one thing, as the case states, the auditor is getting paid by the company to perform an audit. This alone may interfere with an auditor’s ethics in the sense that if he or she does not feel that they are getting paid enough, they might overlook some aspects of the financial statement in regards to the GAAP. Likewise, if an auditor is getting paid a large sum of money to do an audit, he or she may be more inclined to be more in favor of the company’s wants and not be a fair/unbiased auditor. Other factors which may affect and auditor’s ethics are having relations with someone in company management or being in contact or having relations with an investor of the company.

Suzanne Holl wrote a peer reviewed article titled Ethical Dilemmas Facing CPAs: Three Case Studies (2016) which has been featured in not only the CPA Journal but also cited in many other peer reviewed works. This article, as it’s title suggests, is used to demonstrate various ethical dilemmas that a CPA could face, either naturally or after decisions made with questionable ethics. It can be used to prepare future CPA’s for different scenarios, while simultaneously highlighting the importance of making ethical decisions.

Do you believe the firm's response to the situation was appropriate? Explain. Are there other ways that the situation could have been successfully resolved?

This case overall probes into 3 basic financial statements of the company and management’s view as well as auditors comments on it. It teaches about how business ethics and corporate governance works.

The third moral issue in Tyco case that identify with irreconcilable circumstance is bookkeeping misrepresentation. Bookkeeping misrepresentation can be depicted as any demonstration or endeavor to control the monetary explanation for monetary benefit. It can be one of the legitimate issues for this situation on the grounds that it comprises of extortion which is unlawful in composed law. The irreconcilable situation emerges for this situation on the grounds that the reviewers, bookkeepers, and administrators of Tyco International dissolve trust and their own advantage has enormously fluctuated with the enthusiasm of shareholders and the partners in Tyco. They tend to give up the nature of money related reporting data for their own advantage.