Acct 2010

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ACCT 2010: Fall 2012
Sections L08, L09, and L15

GROUP PROJECT
Please form groups of four to five students. Each group should analyze three cases provided below and write a short report. The objectives of the project are to help you develop the ability to 1) evaluate situations that have ethical implications, 2) identify the stakeholders and their interests, 3) describe ethical dilemmas and propose solutions, and 4) explain the importance of social responsibility. Each group should submit a written report that should include: 1. A cover page: title, section, and the names of team members (plus student IDs). 2. Case analysis: one page per case (three pages in total), 12 pt font, single-spaced, one-inch margins all around. The report is due at the beginning of class on November 9, 2012. Late submissions will not be accepted. Note: Every group member should contribute fairly to the project, which means that everyone should take part. I reserve the right to adjust your project score if I learn that you did not make adequate contribution to the project.

Case 1 Sunrise Bank, Inc. recently appointed the accounting firm Smith, Godfrey, and Hannaford LLP as the bank’s auditor. Sunrise quickly became one of Smith, Godfrey, and Hannaford’s largest clients. Subject to banking regulations, Sunrise must provide for any expected losses on notes receivable that Sunrise may not collect in full. During the course of the audit, Smith, Godfrey, and Hannaford determined that three large notes receivable of Sunrise seem questionable. Smith, Godfrey, and Hannaford discussed these loans with Susan Carter, controller of Sunrise. Carter assured the auditors that these notes were good and that issuers of these notes will be able to pay their notes after the economy improves. Smith, Godfrey and Hannaford stated that Sunrise must record a loss for a portion of these notes receivable to account for the likelihood that Sunrise may never collect their full amount. Carter objected and...
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