Objectivity - Orange Milestone

These are scenarios for the orange Objectivity milestone - related to the practice of accounting.

You can ask your teammates for help in answering these questions and you can also use the resource guide or links to find the answers. The key to success is discussing the scenarios with your teammates and sharing your knowledge with each other.

Abbreviations used include:
• OBA - Oregon Board of Accountancy
• OAR - Oregon Administrative Rules
• ORS - Oregon Revised Statutes
• CPC - AICPA Code of Professional Conduct 

You will have 25 minutes to complete as many of these questions as possible. Work as a team to read the questions, discuss the ethical dilemmas and use the resource guide to find answers to questions you don't know how to answer.

Once you and your teammates agree on the answer type your answer into the box provided and submit it.

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* 1. Big Boss calls you into his office to tell you he has reviewed your final report and has found a major error.

You ignored this error when compiling the final report.  If you can convince your team there was a legitimate reason for ignoring the error earn 5 PEPs. If not, you lose 10 PEPs.

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* 2. What has been the most memorable ethical dilemma so far and how does it apply to your real-life work experience?

Enter the names of your teammates seated at the table currently.

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* 3. New revenue recognition rules change revenue recording to "collection is probable" instead of just "reasonably assured."  

Big Boss says this year's revenue is too high so it is not probable you will collect payment from the latest big project just completed.

Is this manipulating results or a legitimate management assessment?  Convince your teammates to earn 5 PEPs, otherwise lose 7.

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* 4. Your company just acquired another entity. You inform your auditors about this acquisition and request that they audit the new entity.

They reply that they are unable to audit the newly acquired entity because one of the partners has a material financial interest.  Does this affect their ability to audit your company?  Why or why not?

Earn 3 PEPs for your response.
CPC 1.700.030 Revised Exposure Draft - Disclosing Information to Clients. 

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* 5. You are controller of your company. Auditors are in your office asking questions your boss, the CFO, has specifically told you not to answer.  

If you do not answer the auditor's questions, this could be subordination of judgment.  What would your character do?  The team can award or deduct 3 PEPs.  

CPC 1.130.020/2.130.020 Preparing and Reporting Information, 1.400.070/2.400.070 Confidential Information Obtained from Employment

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* 6. What is the definition of "conflict of interest"? 

If everyone on the team agrees earn 3 PEPs otherwise lose 6 PEPs.

CPC 1.110 / 2.110 Conflict of interest

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* 7. Big Boss calls you to say how happy she is with the team's performance. She instructs you to take everyone out for a nice dinner.  You decide to take everyone to Chez Henri, the most expensive restaurant in town.

Is this an abuse of power or positive reward?  To receive 3 PEPs explain your character's viewpoint. Include your company's code of conduct and policies in the discussion.

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* 8. You walk into your teammate's office to find her copying software onto a disk.  When you question her she tells you she's copying the software to her personal computer so she can work at home this weekend.

Is this stealing or legitimate action? Explain how your character would view this and earn 4 PEPs if you can do so clearly.

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* 9. Big Boss calls you into his office and tells you company results have not been very good so far.  He cuts your budget in half.

If your team has more than 100 PEPs you know how to overcome this problem.

If your team has less than 100 PEPs you must cut your individual PEPs in half for failure to manage company results.

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* 10. Your supervisor hands you his expense report to approve.  He has charged several personal items and asks you to bill the client for them.

How can you remain objective when the boss is responsible for your salary increase?

Earn 5 PEPs for your response.