Your consulting services have been requested by the CEO of a large international corporation. The CEO is concerned about ethical issues surrounding corporate governance from a global perspective. A common example may be where a corporate board of directors breached one or more duties, such as the duty of loyalty, to its shareholders—although there are many other areas where business ethics are at the center of a case that originated at the governance level of an organization. You are asked to conduct research and analyze a case involving ethical issues surrounding corporate governance from a global position.

Briefly describe the facts of the case, the legal issue, and the decision of the court. In addition, discuss the effect of the case from a global business perspective, on society in general, and how the corporation could prevent such issues in the future. Incorporate the legal terminology from your textbook where appropriate, in both your original post and in your responses to your classmates. Use academic or legitimate news sources such as The New York Times, the Los Angeles Times, the Washington Post, CNN, MSNBC, and/or Fox News, for example. Please include the link or links used for your research in your post for your fellow classmates to review and to comment on

1. Explain the difference between an incorporated and non-incorporated company in the US and give examples of the latter

Should US substantially limit its global involvement? As the leader of the world, do you think US needs substantially revise its foreign policy in this century. Please consider the following issues:

Does the world need a leader and why?

Why the US has played the role in the past decades?

Does the US benefit from its position as the world leader?

If the US really limits its global involvement, what would be the consequences?

Greek Tavern Co was established on July 1, 2020 by a cash investment of $100,000. The following is the Trial Balance prepared on September 30, 2020.

During the three month period, the following activities occurred: 1. The physical checkup revealed that $4,000 worth of supplies is still on hand on September 30. 2. The annual depreciation of office equipment is $15,000. The equipment were purchased on August 1, 2020. 3. The unearned revenue was created on September 1, 2020 by an advance payment from a major customer for services extending over the period August 1 till December 31, 2020. 4. The loan was borrowed on July 1, 2020 for 5 years from BOND Bank. The bank charges 9% interest. 5. The firm pays its 5 employees a weekly salary of $6250. The policy is that it pays every Monday of the week for the previous 5 days' work, Monday through Friday. September 30, 2020 is a Tuesday. Last time the firm paid salary was on Monday September 29, 2020 for the week from 22 till 25. 6. Rogelio paid $50,000 cash on July 1, 2020 for 2 years' office rent.

Rogelio Legal Advisory firm follows the fiscal year extending from July 1 till September 30 and adjust Quarterly.

A. Journalize all the necessary adjusting entries on September 30, 2020 showing all the calculations.

B. Compute the Net Income.

Shamrock Company reports pretax financial income of $76,100 for 2020. The following items cause taxable income to be different than pretax financial income.

Shamrock’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

(a)

Compute taxable income and income taxes payable for 2020.

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

Prepare a pension worksheet for the pension plan for 2020 and 2021.

Halo University is a private faith-based university with less than 10,000 undergraduate and graduate students. The largest sources of revenue are tuition and donations. In the past ten years, the football team has been wildly successful in a Division I conference. Led by Coach Joe Smith, the team played in bowl games all ten years and finished seven seasons in the top 25 in the AP Poll. University fans are wild with enthusiasm. Game are sold out and university colors are seen everywhere. Most importantly, enrollment and donations have increased by 5% each year for the past 10 years. Although Coach Smith receives a $4.5 million a year salary, university administrators agree he is worth every penny. They are not worried about the current $15 million buyout agreement; they want him to stay as long as possible! Joe Smith grew up in the city where Halo is located. He played high school football before becoming a student and player at Halo. After college, Joe played professional football for three years. An injury sidelined him from the game, so Joe decided to coach. Joe served as an assistant coach for another university for four years until his alma mater offered him the Head Coach position. He has been loved by the university community. Everyone knew that he would do an excellent job.

On July 5, the president of the university received a phone call from the state police department. Coach Smith’s home was robbed in the middle of the night. Coach Smith was fine but sent to the hospital for observation. The president immediately went to talk to Coach. Coach Smith assured the president that he was fine and was thankful that no one else was at home at the time of the home invasion. Coach’s wife and three children were on vacation that week. The next day, the president and the coach held a press conference to assure everyone that the Coach suffered only minor scrapes and bruises and that no one else was home at the time of the robbery.

On July 10, television reporters announced that Coach Smith was in fact not home alone at the time of the invasion. A woman named Kaitlyn Anderson was there with him. She hid in the closet during the robbery. She left the home prior to Coach Smith calling the police in an attempt to stay out of the press. Although she did not incur any physical injuries, she was experiencing severe emotional distress from the robbery. The reporters also revealed that the coach and Kaitlyn were having an affair for over two years. A former graduate assistant in the Halo athletic office, Kaitlyn recently completed her Master of Accountancy degree, passed the CPA , and is interviewing for a jobs at public accounting firms. The university formed an Ad Hoc Disciplinary Committee to address the issue. Members of the committee included the university president, the vice president of accounting and finance (who is a CPA), the human resource director, marketing and communications director, athletic director, and legal counsel.

1. What are the relevant facts of the case? Be sure to identify the problem.

          Halo is a small university (with 10,000 undergraduate and graduate student)

2. Governmental entities and not-for-profit organizations have their own Codes of Professional Conduct and/or Codes of Ethical Conduct, many of which can be viewed online. Select an actual faith-based private university and examine its Code of Conduct. Assume that Halo University has a code of conduct similar to the one you selected.

a. What parts of the code should the Ad Hoc Committee consider when making its decision about the ethical issue? (Identify the university your chose for your code of conduct in your answer and provide a link to the code.)

b. Does the Vice President of Accounting and Finance have additional professional obligations due to his CPA designation and position at the university? If so, what are the additional obligations? (Do CPAs have their own code of conduct?) c. What personal obligations, if any, should the committee members consider?

3. Who are the affected parties (stakeholders)? Be sure your answer includes any relevant stakeholders who are not specifically mentioned in the case.

4. What are the potential options and courses of action the ad hoc committee might pursue? List the potential ethical and/or practical ramifications for each option. In your answer, consider the points of view of the stakeholders you identified.

5. What do you think should be done in this situation?

Accounting Questions

1. What set of generally accepted accounting principles does Halo University likely follow? What are the potential financial effects of this situation and of the possible courses of action?

2. Budgeting and control are essential to not-for-profit organizations.

a. What are the key purposes of operating budgets?

b. How do operating budgets of non-governmental not-for-profit entities differ from budgets of for-profit entities? from governmental entities?

c. In this case, how might the present situation and different courses of action affect the present and future operating budgets?

Professional Development Questions

1. Kaitlyn has passed the CPA and will apply to be a CPA when she completes one year of work. What effects, if any, do you think the enormous media coverage of this situation will have on

a. Kaitlyn’s job prospects?

b. Kaitlyn’s likelihood of becoming a CPA? (Could she be denied a license because of her actions related to this case?)

2. Is media, including social media, a concern for all individuals who are interviewing? Explain. What actions should students take concerning their social media prior to a professional job search?

Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research.

Note: Enter debits before credits.

b.The university received a $500,000 endowment.

Note: Enter debits before credits.

c. Record the receipt of tuition and fees revenue.

Note: Enter debits before credits.