Answer the following Questions.

Instruction-1:

1. How does the virtue of self-command apply to the professional accountant? Provide a concrete example.
2. What is the nature of the relationship between self-command and the other virtues that were discussed in this course?
3. What kind of pressures and temptations face professional accountants? How can self-command help them to do the right thing?

Instruction-2:

1. Is the accounting for revenue in the Victor transaction a case of operational earnings management or accounting earnings management? Explain. Briefly address auditing challenges of this kind of transaction.
2. Who are the stakeholders in this case and what are their interests? Use ethical reasoning to evaluate the appropriateness of Levin’s request.
3. Assume you are in Madison Gilmore’s position. Answer the following questions as you prepare for the meeting with Levin and Goldberg.

a. What are the main arguments you are trying to counter?

b. What is at stake for the key parties, including those who disagree with you?

c. What levers can you use to influence those who disagree with you?

d. What is your most powerful and persuasive response to the reasons and rationalizations you need to address?

4. At this point would you recommend to Gilmore that she should go to the audit committee with her concerns? Explain your reasoning.

5. Assume Gilmore goes to the audit committee and nothing changes. The revenue was recorded as earned revenue as of March 31. The goods were shipped to the warehouse on that day. The sale was completed on April 5. A refinancing of the $10 million loan was made shortly after April 5.

Answer rating: 100% (QA)

Instruction1 1 According to Adams Smith selfcommand is a virtue that go hand in hand with proper moral behavior Therefore in accounting professional selfcommand acts a moral structure that enables the ... View the full answer