Raudulent Financial Reporting and Ethics: Miniscribe: A Case of Business Ethics

Read Miniscribe: A Case of Business Ethics and answer questions for each part.

Part 1:
1. What is the authoritative literature that Reggie Lewis should have reviewed in judging whether MiniScribes revenue recognition practices were consistent with GAAP? Based on your review of the literature, do you agree with Reggie or his superior?

2. Assume you are in Reggies position. What would you do in the above situation? Explain in detail the rationale that supports your decision. As a part of your explanation, include a discussion of the major stakeholders of the company who would be affected by your decision.

Part 2:
1. What were the possible courses of action for Reggie Lewis? Assume you are in Reggies position, which course of action would you take?

2. As an employee-accountant, was Reggie legally or professionally obligated to blow the whistle about what was happening at MiniScribe? Did Reggie have an ethical obligation to blow the whistle?

Part 3:
Considering the catastrophic consequences of the financial fraud committed by MiniScribe executives, do you wish to change any of your decisions made in Part 1 and /or Part 2?

2. Discuss the relationship between professional ethics and professional advancement, and more generally discuss the relationship between business ethics and business success.

Added on 24.02.2015 03:23
This is the case No 96-07 from AICPA Case Development Program.