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ACC 418 Unit 5 Rationalization Discussion Question

Question Description

** There are two questions, write a 250 word response for each.

Discussion Question 1: Rationalization (which is part of the Fraud Triangle and the FraudDiamond) means making excuses for your sinful choices instead of admitting that you are evil InGenesis 3, two people blamed someone else for their sin—Adam blamed Eve, and Eve blamed theserpent. Name a factor you think might be used as an excuse by a corporate manager to commit afinancial statement fraud and explain why.

Discussion Question 2: According to the article “Accountants’ Responsibilities and Morality” byArthur Wyatt, the corporate culture of the Arthur Anderson CPA firm slowly changed from the1960s into the 1990s. He listed several things that contributed to the ethical failure that caused thefirm to collapse (including greed, a loss of professionalism, an over-emphasis on consultingrevenues, etc.). Which of the factors do you think was the most significant?

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