XACC 280 Week 8 Checkpoint 1 - Impacts of Unethical Behavior

Checkpoint: Impacts of Unethical Behavior
• Research a company that has been in the news for unethical practices, such as Enron, Tyco, Global Crossing or Worldcom.
• Post a 250-300 word response that summarizes your ideas about the following:
o What was the nature of the controversy regarding this company’s practices?
o How were accounting practices involved?
o If you had been an accountant for this company, how would you have acted? Explain why
o What might have been done to prevent the controversy?
What was the affect of unethical behavior on the profitability of the company?

Have you ever considered how the unethical behavior of a few can affect millions for the rest of their lives? This is exactly the case with Enron. Accountants are tasked with providing accounting information of the financial standings of companies or organizations’. This information is vital for investors because it provides them with a resources needed to make a decision to invest or not invest money into a company or organization. The problem today is that it is not uncommon to find poor decision makers in positions of power making unethical choices that will eventually affect hundreds, thousands, or millions of investors which was exactly the case with Enron.
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