3 credits. Lecture.
This course may not be taken by M.B.A. students, who should instead take BLAW 5175.
This course covers the major legal and ethical issues in business and their significance for the accounting profession and related stakeholders. Included among the topics are: executive compensation; revenue recognition and earnings management; accountants’ role/responsibility in detecting fraud (Madoff); accountants’ legal liability for corporate misconduct; the role/responsibility of accounting standard-setting in preventing business failure and misconduct (subprime crisis); going concern and management obligations to creditors; corporate legal obligations to third parties (tort, warranty, product liability, environmental); employee relations, confidentiality and whistle-blowing; corporate social responsibility (international labor standards, social welfare and environmental issues); auditor independence and professional relationship with client.