The casebook includes more than 150 ethical dilemmas appropriate for use in Financial Accounting, Intermediate Accounting, Auditing, Fraud Detection, and Internal Auditing courses at both the undergraduate and graduate level. The cases are organized into six chapters with two or three subsections per chapter. The shorter cases are useful for brief class discussions. The longer cases are appropriate for team projects, longer assignments, and more extended classroom discussions.

Chapter 1 - Accounting Ethics in the Contemporary Business Climate

  Today' s Headlines

  The Business Crisis and Accounting Education

  Ethical Reform in Accounting Education

  Financial Reporting: Relevance and Reliability

  A Model for Ethical Decision Making

  Conclusion

Chapter 2 - The Income Statement

  REVENUE RECOGNITION

  Case 2.1 Qwest Communications International, Inc.

  Case 2.2 Bristol-Myers Squibb

  Case 2.3 Computer Associates International, Inc.

  Case 2.4 AOL Time Warner

  Case 2.5 Xerox Corporation

  Case 2.6 Global Crossing, Ltd.

  Case 2.7 Merck-Medco

  Case 2.8 Mirant Corporation

  Case 2.9 Revenue Recognition for Unearned Revenue

  Case 2.10 Allowance for Sales Returns

  Case 2.11 Accelerating Sales Revenue

  Case 2.12 Sale Revenue

  Case 2.13 Collecting Contributions

  Case 2.14 Revenue Recognition for Installment Sales

  Case 2.15 Obsolete Inventory

  Case 2.16 Matching Expenses to Revenue

  Case 2.17 Net Profit Versus Gross Profit

  EXPENSE RECOGNITION

  Case 2.18 WorldCom, Inc.

  Case 2.19 Contingent Liability for Toxic Waste Cleanup

  Case 2.20 Expense Recognition

  Case 2.21 Recording Expense Entries

  Case 2.22 Bad Debt Expense

  Case 2.23 Bad Debt Expense

  Case 2.24 Accounts Receivable Write-Offs

  Case 2.25 Year-End Shipments

  Case 2.26 Warranty Expense

  Case 2.27 Expense Estimates

  EARNINGS MISSTATEMENTS

  Case 2.28 Sunbeam Corporation

  Case 2.29 Contingent Rental Fees

  Case 2.30 Year-End Adjusting Entries

  Case 2.31 Performance-Based Bonuses

  Case 2.32 Operating Loans

  Case 2.33 Shipping Terms

  Case 2.34 Estimating a Future Expense

Chapter 3 - The Balance Sheet

  ASSETS

  Case 3.1 Surprise Cash Counts

  Case 3.2 Cash from Operations on the Statement of Cash Flows

  Case 3.3 Classifying Notes Receivable

  Case 3.4 Inventory Purchases

  Case 3.5 Inventory Purchase

  Case 3.6 LIFO Inventory Liquidation

  Case 3.7 Allocating Costs for a Basket Purchase of Assets

  Case 3.8 Recording Modifications to Office Equipment

  Case 3.9 Obtaining Cash

  Case 3.10 Investment Securities

  Case 3.11 Selling Investment Securities

  Case 3.12 Sale of Investment Securities

  Case 3.13 Subsidiary Ledger Reconciliation

  Case 3.14 Cash Discounts

  Case 3.15 Recording Unauthorized Cash Discounts

  Case 3.16 Cash Shortages

  Case 3.17 Changing Asset Lives

  Case 3.18 Cash Salary Payments

  LIABILITIES AND OWNERS EQUITY

  Case 3.19 Classifying Liabilities as Short-Term or Long-Term

  Case 3.20 Bond Sinking Funds

  Case 3.21 Classifying Liabilities

  Case 3.22 Purchase of Treasury Stock

  Case 3.23 Deferred Tax Liability

  Case 3.24 Discounts on Accounts Payable

  Case 3.25 Debt Covenants

  Case 3.26 Classifying Notes Payable

Chapter 4 - Corporate Governance

  COMPANY EXPENDITURES

  Case 4.1 Tyco International Ltd

  Case 4.2 General Electric Company

  Case 4.3 Adelphia Communications Corporation

  Case 4.4 Travel and Entertainment Expense for a Not-For-Profit Company

  Case 4.5 Business Expenditures for a Not- For-Profit Company

  INDEPENDENCE ISSUES AND CORPORATE DECISIONS

  Case 4.6 Collecting Donations

  Case 4.7 The Vanguard Group, Inc.

  Case 4.8 Walt Disney Company

  COMPANY PENSION PLANS

  Case 4.9 Lucent Technologies

  Case 4.10 Enron Corporation

Chapter 5 - Financial Statement Reporting and Disclosure

  FINANCIAL STATEMENT DISCLOSURE

  Case 5.1 Enron Corporation

  Case 5.2 Raytheon, SEC Investigation of Disclosure Regulation

  Case 5.3 Interpublic Groups, Earnings Restatements

  Case 5.4 General Electric, Annual Report

  Case 5.5 Boston Chicken

  Case 5.6 Adelphia, Disclosure of Debt in Financial Statements

  Case 5.7 Adelphia, Earnings Reports

  Case 5.8 Reporting Extraordinary Items

  Case 5.9 Loan Application

  Case 5.10 Certifying Reports to the SEC

  Case 5.11 Reporting Sales Returns

  Case 5.12 Valuing Goodwill

  PRO FORMA REPORTS AND PRESS RELEASES

  Case 5.13 3Corn Corporation, Pro Forma Reporting

  Case 5.14 Pro Forma Earnings

  Case 5.15 Pro Forma Earnings Reports for eToys

  Case 5.16 Issuing Stock Dividends

  Case 5.17 Company Press Releases

  FOOTNOTE AND SUPPLEMENTAL DISCLOSURES

  Case 5.18 Contingent Liabilities for Environmental Pollution

  Case 5.19 Contingent Liabilities

  Case 5.20 Recording Trading Securities

  Case 5.21 Annual Report Disclosures

  Case 5.22 Annual Report Disclosures

  Case 5.23 Reviewing the Management Discussion and Analysis Section of the Annual Report

  Case 5.24 Recording Contingent Liabilities

Chapter 6 - Management Fraud and Accounting Choice

  EARNINGS RESTATMENTS

  Case 6.1 Hanover Compressor, Earnings Restatement

  Case 6.2 Rent-Way, Expense Understatement

  Case 6.3 Rite Aid, Earnings Restatement

  MANAGEMENT FRAUD

  Case 6.4 Sonali, Requests for Financing

  Case 6.5 Recording Revenue Transactions

  Case 6.6 Recording Contingent Rental Fees

  Case 6.7 Cash Distributions for a Privately Held Company

  Case 6.8 Recognizing Revenue

  Case 6.9 Internal Controls for Cash Disbursements

  Case 6.10 Internal Controls in the Catholic Church

  ACCOUNTING CHOICE

  Case 6.11 Implementation of New FASB Standards

  Case 6.12 Cash Salary Payments

  Case 6.13 Implementing Standards for Toxic Waste Disposal

  Case 6.14 Recording a Change in Accounting Principle

  Case 6.15 Implementing FASB No. 141

  Case 6.16 Recording Accounting Changes

  Case 6.17 Recording a Permanent Impairment in Asset Value

  Case 6.18 Recording Research and Development Costs

  Case 6.19 Expensing Capital Expenditures

  Case 6.20 Recording Frequent Flyer Promotions

  Case 6.21 Preparing the Statement of Cash Flows

  Case 6.22 Calculating Operating Cash for the Statement of Cash Flows

  Case 6.23 Delaying Payments on Accounts Payable

  Case 6.24 Evaluating Performance-Based Compensation Plans

  Case 6.25 Recording Lease Transactions

  Case 6.26 Classifying Tax Loss Carryforwards

  Case 6.27 Estimating a Liability

  Case 6.28 Calculating Accounting Estimates

Chapter 7 - Professional Conduct in Accounting

  AUDIT FAILURES

  Case 7.1 The Baptist Foundation of Arizona

  Case 7.2 Audit Methodology

  AICPA CODE OF PROFESSIONAL CONDUCT

  Case 7.3 Ernst & Young Violations of Independence Rules

  Case 7.4 Ernst & Young Violations of Independence Rules

  Case 7.5 PricewaterhouseCoopers's Independence Rules Violations

  Case 7.6 Independence Rules, AICPA Code of Professional Conduct

  Case 7.7 Independence and the Installation of Accounting Information Systems

  Case 7.8 Loans from Audit Clients

  Case 7.9 Mortgages from Audit Clients

  Case 7.10 Client Litigation and Audit Contracts

  Case 7.11 Internal Audit Services Performed by CPA

  Case 7.12 Definitions of Family and Relatives

  Case 7.13 CPA Participation in Investment Clubs

  Case 7.14 Client Gifts

  Case 7.15 Lack of Industry Knowledge

  Case 7.16 Contingent Fee Arrangements

  Case 7.17 The Use of Outside Service Bureaus to Process Tax Returns

  Case 7.18 Disclosure of Client Names

  Case 7.19 Failure of CPA to File State Tax Return

  Case 7.20 Discrimination Lawsuit Filed Against CPA Firm

  Case 7.21 Giving a Clean Opinion on Statements that Are Not Materially Correct

  Case 7.22 Disclosure of Information Related to the CPA Exam

  Case 7.23 Withholding Client Statements for Nonpayment of Fees

  Case 7.24 Providing the Client with Copies of the Audit Workpapers

  Case 7.25 Providing the Client with Copies of the Tax Timing Difference Worksheet

  Case 7.26 Lowballing a Client Bid

  Case 7.27 CPA Influence on IRS

  Case 7.28 Providing Referrals to Audit Clients

  Case 7.29 AICPA Code of Professional Conduct and Corporate Accountants

  Case 7.30 Disclosing Client Information

  TAX AND AUDIT CLIENTS

  Case 7.31 Tax Return Preparation by Big Four Accounting Firms

  Case 7.32 Clients Dropped by Big Four Firms