Excello Telecommunications Ethics 376 Essay

1247 words - 5 pages

Excello Telecommunications Ethical Obligations
Jonathan Carpenter
ETH/376
November-3, 2014
Susan Paris

Excello Telecommunications Ethical Obligations
Up until just recently, Excello Telecommunications has been a very successful business that has never had to worry about unethical implications until competitors took away from the income that was expected to be reported for the end of the fiscal period. The failure to reach the expected estimates for the year has the company leaders worried about investor confidence, stock prices and the yearly bonuses for management. Being back into a corner, the companies CFO, Terry Reed, has decided to book the 1.2 million in sales regardless of the laws ...view middle of the document...

Because of SOX, there is no longer corporate plausible deniability. Once the reports are made and Reed signs his name to the financial reports, he is liable to face any and all penalties for not complying with regulations.
When looking at the principles outlined by the Generally Accepted Accounting Principles or GAAP, Reed must comply with how the financial reports are documented. If Reed were to report the 1.2 million in sales as planned, he would then violate the accrual basis principle of GAAP which states that revenues can only be reported when they are earned. Reed fails to comply with this principle simply because the plans to report this transaction before the company has received the product and signed off agreeing that they will pay for the product. Going further into GAAP, all documentation must be reliable and consistent with prior financial reports. The reliable and consistency principle is what sparks investor confidence within a certain company. If Reed were to manipulate the financial reports, the information provided would mislead investors and cause them to place their money into a lie which could start a downfall of the company once it is realized that the documents are not consistent with the prior year’s documents.
Finally, Reed is faced with the AICPA Code of professional Conduct. After the scandals of 2002, the AICPA created a set of guidelines that companies must follow in order to make ethical decisions when faced with challenging circumstances such as Excello Telecommunications is facing at this point. The AICPA Code of Professional Conduct provides seven principles that state what a company must do in order to remain ethical. In order to remain compliant of the AICPA Code of Professional Conduct, Excello must follow professional duties, protect public interest and be honest with financial reporting. Following these three simple rules when making the final decision will allow Excello to maintain a good ethical status.
Regardless of the ethical implications as well as the laws and regulations provided by SOX and GAAP, Reed wants to report the sale of 1.2 million in products in the 2010 accounting period no matter the cost. Reed knows that by doing so, management will still receive their bonuses, stock prices will remain high and investor confidence will still be with Excello. By demanding this final outcome on the 2010 accounting period, the accounting department decided on three different scenarios that the company could play out. First solution is to go ahead and report the sale and move the inventory to an offsite storage facility. This way, when the company...

Other Essays Like Excello Telecommunications Ethics 376

The Versatility And Flexibility Of OLED's

1014 words - 5 pages In April 1, 2002, organic light emitting diodes gain rise in the scientific community with their published, more practical form at Ames Laboratory. “Scientists at the U.S. Department of Energy's Ames Laboratory, in collaboration with scientists at the University of Michigan, Ann Arbor, have developed and demonstrated a novel, fluorescence-based chemical sensor that is more compact, versatile and less expensive than existing technology of its

Comparing The Moral Virtues Of Antony And Julian The Apostate

1103 words - 5 pages Roman emperor Julian the Apostate and Christian leader Antony both exhibited many qualities of character during their existence. Both of them led very distinctive lives although shared several ethical values. Book 25 of “The Later Roman Empire” and the book “Early Christian Lives” show concrete evidence of this. In the following essay, I will argue how both leaders’ lives were devoted to their religious beliefs and their mutual cardinal virtues

Living In A Cashless Society

1637 words - 7 pages Money in a traditional sense no longer exists. Money is becoming much of a concept than a physical material, and most ordinary bitter have not see the reality of the switch. People today are using credit and debit cards on a regular basis and in everyday situations such as meal purchased at fast food, highway tolls, clothing, groceries, gas stations, etc. all of these means of systems could be regarded as a cashless society or world. The question

The French And Indian War: The "Real" First World War

1955 words - 8 pages The Seven Years War, or more commonly referred to as “The French and Indian War”, has been called the true First World War. In this book The French and Indian War: Deciding the Fate of North America, the author and historian Walter R. Borneman paints a detailed and elaborate picture that justifies the claim of it being the first true war of global proportions. If ever there truly was a climax to the never ending feud of the European powers

Is The Use Of Animals In Medical Research A Necessary Measure?

1513 words - 7 pages Throughout history, animals have been used in experiments to test product safety and obtain medical knowledge that benefits both humans and animals alike. Every year there are numerous medical breakthroughs, such as medications and surgical instruments, which are tested on animals to insure their safety before they are deemed acceptable for human use. Even though the results of the experiments saved millions of human lives, they are also

Education And The Evolving Job Market

2363 words - 10 pages The lives of students today are changing. They are preparing for lives and jobs that have never before existed. If teachers hope to have a significant and worthwhile impact on these quickly changing lives, they must change the way they think, prepare, and instruct our future generations. Children cannot afford to have teachers who remain stagnant in their methods and ideals. Students crave instructors that are willing to allow them to tap

Young And Relentless

1737 words - 7 pages There are numerous influences that can be responsible of teenager’s behaviors and attitude as they develop. One factor that is important to these behaviors is parental figures being over involved or uninvolved in their children’s lives. Many of these effects include illegal substance abuse, rising sexual activity, underage alcohol consumption, and tobacco use. Studies show parental participation plays a key role in the characteristics developed

The Natural Law Theory

1231 words - 5 pages be proven as a valid theory when the existence of god is proven, the explanation of nature being a guiding factor to morality is explained, and proving the theory with examples of how the ethics are applied. God, our almighty creator’s, existence is proven by Saint Thomas Aquinas in his Summa Theologica, where he explains his proofs. Aquinas’ simply uses life experience to prove the existence of God. Two of which are the most undeniable

Resolved: Presidential Signing Statements Threaten To Undermine The Rule Of Law And The Separation Of Powers

1811 words - 8 pages The subject of signing statements has created much debate among the houses of Congress, government officials, and the public alike. These signing statements fall under the categories of constitutional and legislative history signing statements. Constitutional signing statements are those in which the president deems certain provisions of the legislation as unconstitutional, therefore they should not be enforced (Bradley & Posner, 2006

Oppressive Systems Of Government In Egypt And Animal Farm

1529 words - 7 pages As in Egypt, Orwell demonstrates through his allegorical novel “Animal Farm” that leaders are able to establish and maintain power over a people, and in turn create an oppressive and corrupt government system. Orwell shows the significant difference in the education and levels of knowledge in the animals, and how the government takes advantage of this difference. The split between the levels of intelligence is portrayed in the first chapter when

The Pathway To Psychosis

1415 words - 6 pages “How all occasions do inform against me” is a line from act IIII, scene IIII of William Shakespeare’s Hamlet. This line, spoken by Hamlet, expresses his emotional state as he is currently overwhelmed by the death of his father, the king of Denmark, and the situation surrounding it. After Hamlet learns of his father’s death he finds out that his mother has married Claudius, Hamlet’s uncle. On top of all of that, Hamlet soon after

Related Papers

Excello Commuminations Essay

1457 words - 6 pages Excello Communications Camille O'Roarke ETH/376 September 15, 2014 Ding Hardin Excello Communications In the Excello Communications scenario, the CFO Terry Reed is faced with a dilemma. Sales have been dropping due to competition from overseas manufacturers. Mr. Reed’s concern with these reduced sales is the impact it will have on bonuses, stock options, and share prices. With a large order of $1.2 million placed on December 20

Laudon Ch5 Essay

3522 words - 15 pages Information Systems 38 Information Systems, Organizations, and Strategy 80 Ethical and Social Issues in Information Systems 124 Analyzing Business Processes for an Enterprise System 165 Part Two Chapter 5 Chapter 6 Chapter 7 Chapter 8 Part Two Project Information Technology Infrastructure 167 IT Infrastructure and Emerging Technologies 168 Foundations of Business Intelligence: Databases and Information Management 222 Telecommunications, the

Ethical Hacking Essay

5637 words - 23 pages most upto-date information. The 22 domains tested for the CEH exam are as follows: ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Ethics and legal issues Footprinting Scanning Enumeration System hacking Trojans and backdoors Sniffers Denial of service Social engineering Session hijacking Hacking Web servers Web application vulnerabilities Web-based password-cracking techniques Structured Query Language (SQL) injection Hacking wireless networks

The Separation Of Capital Ownership And Control

1577 words - 7 pages The argument of whether the separation of capital ownership and control is an efficient form of organization has constantly been a controversial issue. The criticism whether the controllers’ act is in the best interest of the owners’ wills never end as long as hired managers operate management. As the number of public companies has been increasing over the course of this century, meanwhile the American style of contact based corporation has