1. Analyze each revenue recognition technique identified in the audit committee investigation and explain whether each technique violates revenue recognition rules in accounting. Evaluate the practices followed by CA from an ethical perspective.
2. CA executives were not accused of reporting nonexistent deals or hiding major flaws in the business. The contracts that were backdated by a few days were real. Was this really a crime or should it fall under the heading of noharm, nofoul? Be sure to use ethical reasoning in responding to the question.
3. In her “Seven Signs of Ethical Collapse” that were discussed in Chapter 3, Marianne Jennings listed “pressure to maintain the numbers” as the number one sign. How can a company like CA resist such pressure?