Michael Flores, CPA, CGMA Regier, Carr and Monroe Faculty Fellow Wichita State University ETHICS IN ACCOUNTING EDUCATION

OVERVIEW The educator as a sensor for ethics Service Opportunities Wall Street Journal Unintended Consequences Conclusions

ME, AS A SENSOR FOR MY STUDENTS My greatest fear is becoming the “moldy old professor” that taught me “back in the day.” Rather than teaching me relevant topics and concepts, I was often regaled with war stories about people/places/technologies that were no longer relevant.

VIA CHRISTI HOSPITALS - WICHITA Finance Committee Audit and Intermediate Sanctions Committee

FEDERAL SENTENCING GUIDELINES In 1991, the United States Sentencing Commission promulgated guidelines to govern the imposition of sentences by Federal Judges on organizational defendants. Referred to as the Federal Sentencing Guidelines for Organizations (FSGO), the guidelines impose harsh penalties upon organizations whose employees or other agents have committed federal crimes. Penalties include restitution, remedial orders, community service, and substantial fines, based upon a point system for determining severity of offense.

FEDERAL SENTENCING GUIDELINES These guidelines encourage organizations to develop “effective programs to prevent and detect violations of law” and prescribe eight “steps” that should be included in an effective program. Where organizations demonstrate an effort to implement the eight steps, lower sanctions are levied by Federal Judges Courtesy: The Ethics Resource Center ( 6

FEDERAL SENTENCING GUIDELINES 1)Organizational implementation of compliance standards and procedures that are reasonably capable of reducing the prospect of criminal conduct 2)The assignment of high-level personnel to oversee compliance with such standards and procedures 3)Due care in avoiding delegation to individuals whom the organization knew, or show have known, had a propensity to engage in illegal activities 7

FEDERAL SENTENCING GUIDELINES 4)Communication of standards and procedures, by requiring participation in training programs or by disseminating publications that explain in a practical manner what is required 5)Establishing monitoring, auditing, and reporting systems by creating and publicizing a reporting system whereby employees and other agents can report criminal conduct without fear of retribution 8

FEDERAL SENTENCING GUIDELINES 6)Enforcing standards through appropriate mechanisms, including, as appropriate, discipline of individuals responsible for the failure to detect an offense 7)Developing appropriate responses to offenses by taking all reasonable steps to respond appropriately and prevent further similar offenses, including any necessary modification of programs 8)Encourages an organization to adopt a structure that assigns compliance and ethics officers direct reporting obligations to the governing authority of the organization (new for 2010) 9

TAVR Transcatheter Aortic Valve Replacement TAVR Video

KSBOA ISSUES A CPA’s failure to file his/her own individual income tax returns “Optimizing” claimed CPE hours A possible change in the public disclosure of disciplinary cases? Currently public must search KSBOA database, then contact the Board to determine nature of the discipline. Texas Board ReportReport

Guidestar.com THE UNDISCOVERED COUNTRY: NON-PROFIT ENTITIES

ASSORTED NFP’S Army Emergency Relief Fund CVS Charity and brochure Rainbows United Central Asia Institute Paso del Norte Foundation

UNINTENDED CONSEQUENCES

A STUDENT’S STORY Dropbox NY Post Article

CONCLUSIONS