Whistleblowers
Established in 2010, what act enhanced protections for whistleblowers?
Dodd-Frank Act
What was the corporate culture at Franklin Industries referred to as?
"Don't rock the boat."
Which CPA firm was found by the SEC to routinely violate an independence rule for firms they were auditing?
PricewaterhouseCoopers
This type of accounting is common with energy contracts and it was the reason for Helen's dilemma.
What is mark-to market.
This is know as the basis for trust in the workplace.
What is Integrity
In the article Enhanced Protections by Taylor and Thomas, they frequently referred to auditors as ________?
Gatekeepers
Name two key parties that would be at stake in the Franklin Industries' case.
Natalie, Roger, CEO/Managers, Board of Directors, Company's reputation, Denny King, and Victoria King
What is the primary purpose of accounting firms?
To provide financial services to its client as well as the public
These two transactions caused the gap from net income and operating cash flows to narrow.
What are wash sales & the $300 million payment from DMT.
According to Buchard this is the optimal fit option.
What is High organization and High individual.
Created in 2002, what act protects investors from the possibility of fraud through the establishment of auditing committees?
What is the Sarbanes-Oxley Act of 2002
This famous court case was before Dodd-Frank and before whistle-blowers could make claims against their companies.
What is Mendez v. Halliburton Inc.
What is the difference between purpose and motive for businesses?
Purpose- Goal, Provide goods for society
Motive- Why, the incentive, profit
Dynegy was in competition and tried to be like this competitor... in more than one way.
What is Enron.
This author published her findings of the 7 signs of ethical collapse, including Loyalty to the boss and Innovation like no other.
Who is Marianne Jennings
In the event a company retaliates following a written submission, the SEC establishes significant remedies to the whistleblower. Name two of these.
Reinstates seniority, backpay with interest, payment of legal fees, covers any other related expenses
This means to act according to reasons and motives as ones own, a key factor in moral philosophy.
What is Autonomous will.
What ethical theory supports Milton Friedman's and Adam Smith's views?
Capitalism
"Greatest good for the greatest number"
The inability to do this caused Dynegy to commit fraud.
What is consolidate ABG.
Chapter 3 gives this company as an example of a strong company culture of values.
What is Johnson and Johnson.
Under the Dodd-Frank act, a whistleblower is entitled to a monetary award. What amount does the whistleblower receive? Be specific.
(Hint: There are three key points you must state in your answer.)
The Dodd-Frank Act requires the SEC to pay whistleblowers 10%–30% of the monetary sanctions collected as a result of a successful SEC enforcement action in excess of $1 million.
In the example of Franklin Industries, how many days would Natalie have had to wait to file a whistleblower claim through the SEC?
120 days
According to Duska, what is the biggest challenge to the accounting profession?
To remain professional, put the client and public's interest above your own self interest
The investment amount had to be unhedged by this amount to allow ABG to be seen as a separate entity.
What is 3%
This is classified as "The disclosure by organizations members of illegal, immoral, or illegitimate practices under the control of their employers"
What is Whistle-blowing