Your assignment this week requires the development of thoughtful responses to three ethical issues. You will...

  

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Your assignment this week requires the development of thoughtful responses to three ethical issues. You will create a recorded PowerPoint presentation or KalturaCapture video to present each of the following scenarios to a group on incoming junior accountants. For each scenario, use the four bullet points below to teach the junior accountants about the economic, legal, and ethical concerns. Conclude your presentation with a set of key takeaways for the group. Use the following cues: . . . Define the ethical issue. Determine if there are any alternatives. Identify the stakeholders involved and any possible consequences that may exist for each. Consequences may be (a) legal, (b) economic, or (c) ethical. Determine what would you do, and how would you justify your decision if you were the decision-maker. 1. Issue 1. Some years ago, the managers of the Gold Savings Bank engaged an accounting firm to complete the bank's audit. Over time, the bank became one of the accounting firm's largest clients. Banking rules and regulations require the Gold Savings Bank to account for any expected losses on notes receivable that the bank cannot collect in full. During the course of the most recent audit, the accounting team found three large notes receivable that appeared to be questionable. The auditors discussed loans with the Gold Savings Bank's controller. The controller assured the auditors that the loans were in good standing and that they would be repaid when the economy improved. In keeping with professional standards, the auditors told the managers of the Gold Savings Bank that a percentage of the notes needed to be recorded to reflect the likelihood that the bank might not collect the full amount. Upon hearing this, the controller threatening to have the auditors dismissed if the records were changed. The accounting firm would like to keep the bank as a client because they're depending on the revenue from this audit to expand the firm. 2. Issue 2. Mary Carl is the executive VP of Union Bank. Mary is very active in her community and serves on the board of directors for the local Salvation Army. The Salvation Army is experiencing rapid growth, and its managers are looking to relocate the organization. At the last meeting, the managers of the Salvation Army decided to buy 250 acres of land, just outside the town where Union Bank is located. The owner of the land is going through a very bitter divorce, but he is also a large depositor at Union Bank. Mary is aware of the landowner situation and believes that he will accept a lower offer on the land, even though realtors appraised the land had more than $3.6 million. 3. Issue 3. Union Bank granted a loan to Swiss Chocolates. Currently, Swiss Chocolates is 6 months behind on payments to the bank; the bank VP is helping Swiss Chocolates restructure its debt. The bank's VP learns that the chocolate company is expecting to get a contract with a local food company; the food company is also a customer of Union Bank. Additionally, the VP knows that the food company is on the verge of filing bankruptcy, but no one knows these facts, except her. The VP has been a great help to Swiss Chocolates, and the managers of the chocolate company are depending on the VP's expertise to work through the loan difficulties and advise the company through the process. The VP wants to help Union Bank collect on this large loan, so she's considering alerting the Swiss Chocolates about the difficulties over at the food company. Length: 8-10 slides, 5-10 minute recorded presentation. Introductory and reference slides do not contribute to the required length. References: Include at least three scholarly resources. Your presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards for the references slide. Be sure to adhere to Northcentral University's Academic Integrity Policy. Your assignment this week requires the development of thoughtful responses to three ethical issues. You will create a recorded PowerPoint presentation or KalturaCapture video to present each of the following scenarios to a group on incoming junior accountants. For each scenario, use the four bullet points below to teach the junior accountants about the economic, legal, and ethical concerns. Conclude your presentation with a set of key takeaways for the group. Use the following cues: . . . Define the ethical issue. Determine if there are any alternatives. Identify the stakeholders involved and any possible consequences that may exist for each. Consequences may be (a) legal, (b) economic, or (c) ethical. Determine what would you do, and how would you justify your decision if you were the decision-maker. 1. Issue 1. Some years ago, the managers of the Gold Savings Bank engaged an accounting firm to complete the bank's audit. Over time, the bank became one of the accounting firm's largest clients. Banking rules and regulations require the Gold Savings Bank to account for any expected losses on notes receivable that the bank cannot collect in full. During the course of the most recent audit, the accounting team found three large notes receivable that appeared to be questionable. The auditors discussed loans with the Gold Savings Bank's controller. The controller assured the auditors that the loans were in good standing and that they would be repaid when the economy improved. In keeping with professional standards, the auditors told the managers of the Gold Savings Bank that a percentage of the notes needed to be recorded to reflect the likelihood that the bank might not collect the full amount. Upon hearing this, the controller threatening to have the auditors dismissed if the records were changed. The accounting firm would like to keep the bank as a client because they're depending on the revenue from this audit to expand the firm. 2. Issue 2. Mary Carl is the executive VP of Union Bank. Mary is very active in her community and serves on the board of directors for the local Salvation Army. The Salvation Army is experiencing rapid growth, and its managers are looking to relocate the organization. At the last meeting, the managers of the Salvation Army decided to buy 250 acres of land, just outside the town where Union Bank is located. The owner of the land is going through a very bitter divorce, but he is also a large depositor at Union Bank. Mary is aware of the landowner situation and believes that he will accept a lower offer on the land, even though realtors appraised the land had more than $3.6 million. 3. Issue 3. Union Bank granted a loan to Swiss Chocolates. Currently, Swiss Chocolates is 6 months behind on payments to the bank; the bank VP is helping Swiss Chocolates restructure its debt. The bank's VP learns that the chocolate company is expecting to get a contract with a local food company; the food company is also a customer of Union Bank. Additionally, the VP knows that the food company is on the verge of filing bankruptcy, but no one knows these facts, except her. The VP has been a great help to Swiss Chocolates, and the managers of the chocolate company are depending on the VP's expertise to work through the loan difficulties and advise the company through the process. The VP wants to help Union Bank collect on this large loan, so she's considering alerting the Swiss Chocolates about the difficulties over at the food company. Length: 8-10 slides, 5-10 minute recorded presentation. Introductory and reference slides do not contribute to the required length. References: Include at least three scholarly resources. Your presentation should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards for the references slide. Be sure to adhere to Northcentral University's Academic Integrity Policy.

Answer rating: 100% (QA)

1 Definition In this scenario the ethical issue is whether the accounting firm should adhere to professional standards and record a percentage of notes receivable that may not be collected despite the ... View the full answer