1. Identify the ethical issue within the scenario. You will identify the ethical issue presented in the scenario. Explain in detail why the ethical issue exists and rules that govern the handling of the situation. You must use at least two credible outside source that supports your assertion regarding the ethical dilemma. 2. Answer each of the following questions: Who will potentially be harmed? Who will potentially benefit? What (if any) rights or claims will be violated? In this section of your answer, you need to address the stakeholders involved in the situation. Then, you need to provide an explanation of how those stakeholders will be affected. When you discuss who might be harmed by the situation, fully explain how they will be harmed. When you discuss who will potentially benefit, also share in detail how they will benefit. When you discuss the violation of rights and/or claims, give details about those rights and/or claims and why the ethical issue will impact those rights and/or claims. 3. Discuss your responsibility and obligations as an accounting professional. In the concluding paragraph, discuss how the matter should be handled based on your responsibilities and obligations, as well as your ethical convictions. Describe in detail why you would choose to deal with the ethical issue in this manner, from the standpoint of responsibility as an accounting professional and from an ethical standpoint. For each scenario, you will create a document that answers each of the three requirements presented. You should format your document using Times New Roman 12 point font with 1 margins on all sides. Please double space your document. You must use correct APA formatting for all citations and include a separate Works Cited page for each of the ethical scenarios. Any form of plagiarism with result in a 0 for the entire Capstone Project and you will receive an F as your final grade in the course. I would suggest separating each of the three requirements into 3 different paragraphs. The key to doing well on this section is providing detail. While you are only required to provide one page of written material by the assignment instructions, please note that you will be graded on content and fully answering (in detail) the three numbered requirements. Scenario #1: You are employed as an auditor at a CPA firm. One of your clients is Camp Enterprises, a company who has become quite successful over the past 4 years. Increases in earnings have averaged around 15% each year. The corporation is planning on a public offering of stock in January 2016, which in turn would cause a sizeable increase in fees for your employer. Furthermore, the additional financing would fund an expansion that would bring new jobs for the community, which would help to stimulate the local economy, and allow the company to diversify their products. On October 31, 2015, as you are working on the audit for the fiscal year ending June 30, 2015, an issue comes to your attention that could potentially have an effect on the significant increase in earnings for the fiscal year. A very large order was slated to be shipped FOB Shipping Point to Coral Creations on July 14, 2015. The order was completed and stored in the warehouse but was not segregated. Management included the selling price and related expenses in the net income for the fiscal year ending June 30, 2015. If the issue is handled in a way that decreases net income, Camp Enterprises net income will be lower than the amount reported last year. Scenario #2: It is July 3, 2015, and you have just been hired on as a staff accountant at Pace Corporation. You have been tasked on creating the financial statements for the 2nd quarter of the fiscal year, and as you create the balance sheet, you notice an account called Miscellaneous Equipment in the amount of $395,000. This is a relatively large account balance compared to the other fixed asset accounts, and you are a bit unsure how to classify the account for reporting purposes, since you havent even found a depreciation schedule for the account. In order to get more information, you go to the Controller, Scott Smith, and ask about the account. He replies, That account needs to be included under Property, Plant & Equipment. Because our business is cyclical, and we always show higher profits in the third and fourth quarters of the year, we put all of our equipment repair expenses in that account and then expense them off when we have more revenue to offset it in the last two quarters of the year. This keeps us from having to show losses in the first and second quarters of the year, and makes all of our quarterly reports look good. It really doesnt matter because our yearly totals are all the same regardless of how we report repair expenses in each of the quarters. Weve done it this way for years, and that is how I want you to report it.