Chapter 1, Problem 3.3EC

Which of the following nature of corporate governance damages the financial stability of the business? O a. It is structured ambiguously. Ob. It is compliant with the formal laws. Oc.it is adhering to the ethical standards. O d. It is adhering the best business practices.

Discuss the importance of ethical behavior in accounting and the consequences of unethical behavior.

Analyze and discuss when earnings management may be an ethical practice and when it is an unethical practice.

1. Cite specific examples of risk avoidance, Reduction, Transfer and Retention? 2. What is the significance of internal control in an organization? Cite an example of a company that failed due to IC deficiency?

what happens when director is being irresponsible in the company?

Which of the following is not part of the definition of internal control? a. Separation of duties b. Safeguard assets c. Encourage employees to follow company policies d. Promote operational efficiency

Most managers have no difficulty avoiding blatantly dishonest actions. But sometimes there are gray areas, where it is debatable whether an action is unethical and unacceptable. Suggest an important ethical dilemma that companies may face. What principles should guide their decision?

Why should businesses shift to an electronic accounting system? How can controls deter fraudulent practices in a business?

Some argue against corporate involvement in socially responsible behavior because the costs incurred by such behavior place the organization at a disadvantage in a competitive market. Discuss the merits and flaws of this argument.