For a more detailed syllabus, please review the syllabus posted in Blackboard. This syllabus is intended to be a brief overview of the course and is subject to change. The final syllabus will be posted in Blackboard and a hard copy will be distributed during the first week of the semester.

Before enrolling in ACNT 1335, you must have completed ACNT 2331 Internal Control and Auditing or an equivalent course in Auditing.  Students who have not completed the prerequisite courses or who cannot document completion will be withdrawn from the class.

Basic computer skills utilizing internet, word processing, spreadsheet (Excel), and presentation (Power Point) software are recommended for all accounting courses. Generally, all assignments are to be prepared on the computer and presented in a format that would be acceptable in a business environment.  Access to computers is available at the college. 

Your grade will be determined by an assessment of your success in engaging the subject matter.  The following point scale is used to determine the course grade:

Module 1: Course Orientation

Module 2: Ethical Reasoning: Implications for Accounting

Module 3: Cognitive Processes and Ethical Decision Making in Accounting

Module 4: Organizational Ethics and Corporate Governance

Module 5: Ethics and Professional Judgment in Accounting

Module 6: Fraud in Financial Statements and Auditor Responsibilities

Module 7: Legal, Regulatory, and Professional Obligations of Auditors

Module 8: Earnings Management

Module 9: Ethical Leadership and Decision Making in Accounting

Module 10: Capstone Project - Personal Ethics Tool (PET) or Ethics in Action Video Project

COURSE OBJECTIVES:

• Examine ethical issues that impact the accounting and audit professions in order to explore the approriate role of accounting professionals in business and society.

• Investigate the legitimate use of governmental oversight, regulation, and standard-setting to monitor the behavior of accountants and other business professionals.

• Assess the impact and implications of present and proposed solutions to the moral dilemma associated with economic decision making.

• Investigate the timely issues related to accounting ethics, including earnings management and fraud, internal control and corporate governance, and the development of an ethical framework for use in setting appropriate standards of conduct for stakeholders in the accounting process.

• Familiarize students with various ethical theories and frameworks for ethical decision making while integrating this knowledge into an individualized personal ethics tool for making ethical decisions.

LEARNING OUTCOMES:

CHAPTER 1 -

1. ​Explain how integrity enables a CPA to withstand pressures and avoid subordination of judgment
2. Discuss the relationship between one's values, ethics, and legal obligations.
3. Describe how the pillars of character support ethical decision making.
4. Differentiate between moral philosophies and their effect on ethical reasoning in accounting.
5. Explain the concept of the public interest in accounting.
6. Discuss the Principles section of the AICPA Code of Professional Conduct. 
7. Apply the IMA Statement of Ethical and Professional Practice to a case study.

CHAPTER 2 - 

1. Describe Kohlberg's stages of moral development.
2. Explain the components of Rest's model and how it influences ethical decision making.
3. Describe the link between moral intensity and ethical decision making.
4. Explain how moral reasoning and virtue influence ethical decision making.
5. Apply the steps in the Integrated Ethical Decision Making Model to a case study.
6. Analyze the thought process involved in making decisions and taking ethical action.
7. Describe the "Giving Voice to Values" technique and apply it to a case study.

CHAPTER 3 - 

1. Describe the link between organizational climate and ethical leadership.
2. Explain the link between organizational ethics, individual ethics, and corporate culture.
3. Analyze why and how organizational culture is formed. 
4. Discuss the views of employees about ethics in their organizations.
5. Describe the causes of fraud, detection methods, and perventative controls.
6. Explain the components of corporate governance and their relationship to corporate culture.
7. Analyze the moral basis for whistleblowing and accountants' obligations to whistleblow.

CHAPTER 4 - 

1. Explain how professional judgment and skepticism influences ethical decision making. 
2. Discuss how the public interest may be affected by commercial activities of CPA's.
3. Explain the threats and safeguards approach to independence.
4. Discuss how nonattest services can impair audit independence.
5. Describe the process to resolve ethical conflicts that affect integrity and objectivity.
6. Explain the rules of conduct in the AICPA Code.
7. Discuss ethics in tax practice.

CHAPTER 5 - 

1. Distinguish between audit requirements for errors, fraud, and illegal acts. 
2. Explain the components of the Fraud Triangle.
3. Describe fraud risk assessment procedures.
4. Explain the standards for audit reports.
5. Discuss the characteristics of professional skepticism.
6. Explain PCAOB auditing standards.
7. Describe the PCAOB inspection process.

CHAPTER 6 - 

1. Distinguish between common-law rulings and auditors' legal liability.
2. Explain the basis for auditors' statutory legal liability.
3. Discuss auditors' legal liabilities under SOX.
4. Explain the major provisions of the FCPA.
5. Describe the cultural and professional constraints on adopting IFRS.
6. Distinguish between legal compliance and management by values.
7. Discuss the factors that promote global ethics, and prevent global fraud and bribery.

CHAPTER 7 - 

1. Describe the motivation for earnings management.
2. Explain what earnings management seeks to accomplish.
3. Discuss how earnings management judgments are made.
4. Desribee the various devices used to manage earnings.
5. Explain the workings of financial shenanigans.
6. Explain the causes and effects of financial restatements.

CHAPTER 8 - 

1. Explain the characteristics of ethical leaders.
2. Distinguish between types of leaders.
3. Discuss how moral intensity and organizational culture influences leadership in accounting.
4. Explain the implications of ethical leadership failure on whistleblowing.
5. Describe the role of GVV on ethical leadership.
6. Describe the characteristics of competent leaders.

The Austin Community College District concealed handgun policy ensures compliance with Section 411.2031 of the Texas Government Code (also known as the Campus Carry Law), while maintaining ACC’s commitment to provide a safe environment for its students, faculty, staff, and visitors.

Beginning August 1, 2017, individuals who are licensed to carry (LTC) may do so on campus premises except in locations and at activities prohibited by state or federal law, or the college’s concealed handgun policy.

It is the responsibility of license holders to conceal their handguns at all times. Persons who see a handgun on campus are asked to contact the ACC Police Department by dialing 222 from a campus phone or 512-223-7999.

If you would like additional information regarding the ACC concealed handgun policy, please see the complete policy online at Campus Carry.

Austin Community College has received the designation of Qualifying Educational Credit for the Uniform CPA Examination by the Texas State Board of Public Accountancy (Board).  This course meets the requirement for an Accounting Ethics course as required by the Board.  Please review the information on our website. It is the student’s responsibility to understand and comply with the requirements of the Board.

To become a CPA in Texas, you must have a minimum of a bachelor’s degree that includes 150 hours of college credit, including 36 hours of accounting, an approved 3 credit hour accounting ethics course and 24 credit hours of business courses.  Passage of the Uniform CPA Exam and appropriate supervision by a CPA are also required.

H.B. 1508 Disclosure:  To become a CPA in Texas, the Board has a statutory obligation (The Public Accountancy Act, Chapter 901 of the Occupations Code, Section 901.253) to determine that any person awarded a Texas CPA certificate is of good moral character.  Good moral character is demonstrated by the lack of a history of dishonest or felonious acts. The Board considers several areas in evaluating an applicant's moral character. These include

·         Responses to questions on the application relating to arrests, charges, convictions, probations and/or deferred adjudications of a felony or misdemeanor other than misdemeanor driving offenses such as moving violations (NOTE: DWIs are not considered misdemeanor driving offenses).

·         The Board will access the Federal Bureau of Investigation (FBI) database and the Texas Department of Public Safety – Crime Records Division files using an established fingerprint process for each person who submits an Application of Intent. The fingerprint process allows the Board to receive information on all arrests, charges, convictions, probations and deferred adjudications of misdemeanor and felony offenses that occur in any U.S. state or territory. Records of these activities are reported to the Board for further investigation. If an applicant was 17 years of age or older at the time of the arrest, it should be reported to the Board. You are not required to report criminal records that have been expunged or sealed by an order of the court. You are required to report criminal records subject to a non-disclosure order.  Any subsequent arrest will automatically be reported to the Board for further investigation.

For students in this course who may have a criminal background, please be advised that the criminal background could keep you from being licensed by the State of Texas.  If you have a question about your background and licensure, please speak with your faculty member or the department chair. You also have the right to request a criminal history evaluation letter from the applicable licensing agency.