ROGER’S DILEMMA: A Situational Examination of Ethical Behavior in the Presence of
Internal Control Deficiencies
Due Monday of Week 12
ALL STUDENTS
Obtain the case through the UML library: Mellon, M.J. and R. Marley XXXXXXXXXXRoger’s Dilemma:
A Situational Examination of Ethical Behavior in the Presence of Internal Control Deficiencies.
Issues in Accounting Education 28(2): 15-22.
Answer requirements 1 through 6 on page 340 of the case. Prepare your answers in a Word
document and save using the following naming format: Wk12FirstName_LastName_Roger.
Additional information and/or the point values for each of the requirements follows:
1. You don’t have to identify every stakeholder for full credit, but I have a list of 15 (worth
6 points)
2. You don’t have to identify every conflict for full credit, but I have a list of 9 (worth 4
points)
3. Ensure your discussion provides specific support for your answer (worth 4 points)
4. Worth 3 points
5. Ensure your discussion provides specific support for your answer (worth 3 points)
6. Ensure your discussion provides specific support for your answer (worth 2 points)
Writing and grammar are worth 3 points.
WRITING REQUIREMENTS/RESTRICTIONS
Prepare a Word document with the answers to the questions above, making sure to meet the
following requirements/restrictions.
? 12-point font
? One inch margins
? Double-spaced
Document Preview: ISSUES IN ACCOUNTING EDUCATION American Accounting Association
Vol. 28, No. 2 DOI: XXXXXXXXXX/iace-50365
2013
pp. 337–351
Roger’s Dilemma: A Situational Examination
of Ethical Behavior in the Presence of Internal
Control De?ciencies
Mark J. Mellon and Robert Marley
ABSTRACT: This case exposes students to decision making in an ethically and legally
ambiguous situation. It also asks them to practice using their ethical sensitivity by
identifying situations where ethical conflicts are present. Students will learn the
Securities and Exchange Commission’s definition of insider trading and gain an
understanding of the Supreme Court’s recent interpretations regarding the specifics of
what constitutes insider trading. Students will also learn about the legal protection
afforded to whistleblowers under the Sarbanes-Oxley Act and learn about the code of
ethics requirement applicable to public company’s senior financial officers and the chief
executive officer. Finally, students will be exposed to the definition of an internal control
deficiency and learn how to identify two types of internal control deficiencies.
Keywords: insider-trading law; corporate code of ethics; whistleblowing; internal
control; Sarbanes-Oxley Act; internal control de?ciency.
INTRODUCTION
oger McDaniels sat in front of his computer pondering his immediate future. He had just
?nished an impromptu meeting with Beth Sullivan from the internal audit department and
R
his con?dence was shaken. Both Roger and Beth left the meeting wondering if their recent
decisions were for the best.
Roger’s accounting career began approximately ten years ago when he became a CPA. Over
the last decade, Roger had been successfully employed in a variety of accounting positions. It
therefore came as no surprise to Roger when three months ago, he was contacted by an executive
recruiter and offered the CFO position at Solodor Pharmaceuticals (SP). SP’s mission was to
conduct tests on Celenza, a new drug that had been developed to...