Foothill CollegeApproved Course Outlines

Business and Social Sciences Division
5 hours lecture.5 Units

Total Quarter Learning Hours: 60 (Total of All Lecture, Lecture/Lab, and Lab hours X 12)
 Lecture Hours: 5 Lab Hours: Lecture/Lab:
 Note: If Lab hours are specified, see item 10. Lab Content below.

Repeatability -
Statement: Not Repeatable.

Status -
 Course Status: ActiveGrading: Letter Grade with P/NP option
 Degree Status: ApplicableCredit Status: Credit
 Degree or Certificate Requirement: AA Degree,   Certificate of Achievement
 GE Status: Non-GE

Articulation Office Information -
 Transferability: CSUValidation: 07/01/2013

1. Description -
Study of professional ethics for accounting from a business perspective in context of financial statement frauds such as Enron. Topics include nature of accounting, ethical behavior in accounting, ethical theory, rules of the code of conduct, ethics of tax accounting and ethics of the auditing function.
Prerequisite: ACTG 1A.
Co-requisite: None
Advisory: Eligibility for MATH 220 and ESLL 26.

2. Course Objectives -
The student will be able to:
  1. Discuss the history and function of ethics.
  2. Differentiate between the six guiding principles in the AICPA Code of Professional Conduct.
  3. Apply the AICPA standards and the IRS rules to common ethical dilemmas faced by CPAs in practice.
  4. Explain the ideals of Integrity, Independence and Objectivity in relation to the distinctive work of an accountant.
  5. Compare and contrast the three layers of failure to exercise due care.
  6. Describe the difference between being independent in appearance and independent in fact.
  7. Define the revenue recognition and matching principles and explain why they are important to users of financial statements.
  8. Explain the full disclosure principle under GAAP and illustrate why it's important to users of financial statements.
3. Special Facilities and/or Equipment -
  1. Access to a computer lab and Excel software.
  2. When taught online as a distance learning section, students and faculty need ongoing and continuous Internet and email access.

4. Course Content (Body of knowledge) -
  1. Principal types of ethical theory
    1. Function of ethics
    2. Ethics and morals
    3. AICPA Code of Professional Conduct Ethical Theories
  2. Accounting as a profession
    1. Professional codes of conduct
      1. Protecting consumers
      2. Protecting the profession
  3. Principal virtues of an accountant
    1. Guiding principles in the AICPA Code of Professional Conduct
    2. Differences between the principles, rules and interpretations
    3. Rules regarding specific actions common to the CPA community
  4. Integrity and Objectivity
    1. Lapses in integrity and objectivity in internal accounting and outside auditing
      1. Enron, Worldcom, Sunbeam, Madoff
  5. Independence
    1. Significance to the audit profession.
  6. Professionalism and professional due care
    1. Ordinary negligence
    2. Gross negligence
    3. Fraud
  7. Revenue recognition and matching principles
    1. Violations of the revenue recognition principle
    2. Violations of the matching principle
  8. Other accounting improprieties
    1. Common violations and complaints against CPAs
    2. Corporate responsibility laws
  9. Internal Revenue Service Circular 230.
    1. AICPA guidance on tax practice.
  10. AICPA guidance for Management Accountants.
    1. Promulgations by the Institute of Management Accountants (IMA).

5. Repeatability - Moved to header area.
6. Methods of Evaluation -
The student will demonstrate proficiency by examinations, quizzes, homework assignments, written reports, group activities and discussions.
7. Representative Text(s) -
Duska, Ronald, Brenda Shay Duska and Julie Ann Ragatz. Accounting Ethics. 2nd Edition. Wiley, 2011.
Brooks, Leonard J. and Paul Dunn. Business and Professional Ethics for Directors, Executives and Accountants. Sixth Edition. Cengage Publishing, 2012

8. Disciplines -
9. Method of Instruction -
  1. Lecture in class or electronic discussions,
  2. Group work
  3. Case studies
10. Lab Content -
Not applicable.
11. Honors Description - No longer used. Integrated into main description section.
12. Types and/or Examples of Required Reading, Writing and Outside of Class Assignments -
  1. Reading of AICPA Code of Conduct
  2. Written case studies on ethics in accounting
  3. Reading of articles on Internet related to ethical dilemmas in accounting
  4. Reading of fair value issues in accounting
  5. Reading of IRS Circular 230
13. Need/Justification -
This course is a restricted support course for the A.A. degree in Accounting.

Course status: Active
Last updated: 2014-06-06 12:18:14

Foothill CollegeApproved Course Outlines