ACCt418 Unit 6 Expectation Gap and Ethical Philosophy Discussion Questions

** There area total of two discussion questions below. Please write a 250 word response for each and you must use 1 to 2 references.

Discussion Question 1: What is the “expectations gap” between investors and auditors? Which of the following three strategies do you think would be the best way to narrow the gap — (1) educating investors; (2) regulating audits; or (3) expanding audits with more work?

Discussion Question 2: Sherron Watkins, Enron’s VP of Corporate Development, wrote in a memo to Enron’s CEO Kenneth Lay before the fraud was publicly known: “My 8 years of Enron work history will be worth nothing on my resume, the business world will consider the past successes as nothing but an elaborate accounting hoax.” (http://www.justice.gov/archive/enron/exhibit/03-15/BBC-0001/Images/9811.001.PDF) What ethical philosophy do you think she was using?

 

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