Ethics

Read Major Case Study 6: Waste Management

answer the following questions:

1. Characterize the ethical leadership at Waste Management and how it influenced organizational ethics.

2. The SEC charged Andersen with failing to quantify and estimate all known and likely misstatements due to non-GAAP practices.

3. Describe the failings of the firm with respect to professional judgment and ethical expectations under AICPA Code.
Classify each of the accounting techniques described in the case that contributed to the fraud into one of Schilits accounting shenanigans. Include a discussion of how each technique violated GAAP.

4. Do you believe auditors should be expected to discover fraud when a client goes to great lengths, as did Waste management, to withhold evidence from the auditors and mask the true financial effects of transactions? Explain.

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