Degree Applicable Glendale Community College October 2013 COURSE OUTLINE Accounting 250 Accounting Ethics I. Catalog Statement Accounting 250 is an advanced course that addresses the concepts of ethical reasoning and the decision process. Topics include the professional judgment, corporate governance, American Institute of Certified Public Accountants (AICPA) code of conduct, accounting fraud, legal and regulatory obligations, earnings management, quality of financial reporting and International Financial Reporting Standards (IFRS) ethics. Total Lecture Units: 3.0 Total Course Units: 3.0 Total Lecture Hours: 48 Total Faculty Contact Hours: 48 Prerequisite: Accounting 101 II. Course Entry Expectations Skills Level Ranges: Reading 5; Writing 4; Listening/Speaking 4; Math 4 Prior to enrolling in the course, the student should be able to: 1. analyze, evaluate, and explain business problems using basic concepts and terminology of accounting and finance; 2. explain the use of accounting information, both by those outside and within the firm; 3. recognize and analyze ethical issues in accounting and business practice; 4. explain principles and issues concerning the accounting cycle, revenue and expense recognition and measurement, the valuation of economic resources, internal control, external reporting requirements, the financial performance, strength of a firm and external financing and the impact of Generally accepted accounting principles (GAAP) and IFRS; 5. use the computer in preparing either a general ledger package, preparing a spreadsheet program, or conducting internet-based research; 6. perform in a collaborative group setting, by completing one or more assigned projects requiring work in small groups. III. Course Exit Standards ACCTG 250 Page 2 of 3 Upon successful completion of the required coursework, the student will be able to: 1. discuss the ethical models and philosophies associated with accounting; 2. evaluate case studies about accounting fraud; 3. discuss the ethical treatment of financial accounting reporting; 4. compare and contrast the legal and regulatory obligations in an ethical framework. IV. Course Content Total Faculty Contact Hours=48 A. Ethical Reasoning and Decision Process 6 hours 1. Ethics models and modern morals philosophies 2. Current and historical models and philosophies B. Ethical Management and Governance 16 hours 1. Building blocks of governance Systems 2. Ethical governing bodies a. Public Company Accounting Oversight Board (PCAOB) b. Sarbanes-Oaxley Act of 2002 (SOX) 3. Generally Accepted Auditing Standards 4. Nature and contents of the Audit Report 5. Fraud Triangle, Errors and Illegal Acts C. AICPA Code of Professional Conduct 3 hours 1. Link between Ethical Judgment and Professional Responsibilities D. Accounting Fraud and legal obligations 9 hours 1. Current accounting frauds 2. Compare and contrast the laws affecting the accountant 3. Auditors Recklessness and Intent to defraud E. Earnings Management and Quality Financial Reporting 9 hours 1. Define and discuss the ethical methods of earnings reporting 2. Financial Statement Restatements 3. Earnings Management Techniques 4. Financial Shenanigans F. International Financial Reporting 5 hours 1. International Audit Standards and IFRS 2. Global Adoption of IFRS and Code of Ethics 3. OECD Principles of Corporate Governance V. Methods of Instruction The following methods of instruction may be used in the course: 1. classroom lecture and discussion; 2. group discussion and presentations. ACCTG 250 Page 3 of 3 VI. Out of Class Assignments The following out of class assignments may be used in the course: 1. reading assignments(e.g. Association of Certified Fraud Examiners Web site: 2012 report to the nation); 2. case studies evaluations (e.g. Worldcom, Enron). VII. Methods of Evaluation The following methods of evaluation may be used in the course: 1. cases and reading assignment to introduce each covered subject; 2. homework assignment to reinforce the covered subject; 3. numerous quizzes and tests; 4. written final examination. VIII. Textbooks Mintz, Steven M. and Roselyn E.Morris. Ethical Obligations and Decision Making in Accounting. Second Edition. New York: McGraw-Hill, 2011. Print. 10th grade Textbook Reading Level. ISBN: 978-0-07-802528-0 IX. Student Learning Outcomes Upon successful completion of the required coursework, the student will be able to: 1. identify and analyze the ethical implications in case studies; 2. build a governance system for a potential company using the ethical models. .