Unit 4 Case Studies

Students: Read the ethics cases listed below and answer the questions associated with each. Please use the case studies I attached for each chapter for you. DO NOT type in paper form. Actually, answer the questions. You do not have to retype the questions; however, answer questions according to corresponding number.

Ethics case 1: “Carillion Bankruptcy: A Nightmare That Challenged the Foundations of the U.K. Accounting Profession”

Read the ethics case “Carillion Bankruptcy” at the end of Chapter 6 of your text and answer the following questions:

  • 1. What are the responsibilities of auditors to management, to the board, and to the public up to the following dates?
    • end of the fiscal year of the audited period
    • from year-end to the date the audit report is signed
    • after the audit report is signed but before it is made public
  • 2. What is an accounting firm responsible for if its audit opinion fails to raise any concerns and the client goes bankrupt? Consider losses to creditors, lenders, employees, construction clients, and suppliers, as well as infrastructure disruption.
  • 3. At the time, the new NOCLAR rules had just been approved but had not formally been adopted in the U.K. Had NOCLAR rules been followed, what do you think would have been the outcome?
  • 4. What is a NOCLAR activity? What should be considered when determining whether the activity is sufficiently consequential to require further consideration and/or action?


Ethics case 2: “Salary Equity at Gravity Payments”

Read the ethics case “Salary Equity at Gravity Payments” at the end of Chapter 5 of your text and answer the following questions:

  • 1. Do you think that Dan Price’s decision to raise the minimum salary to $70,000 represented ethical leadership?
  • 2. Had Mr. Price identified his stakeholders and analyzed their expectations of the company, would he have acted differently? Reference at least three stakeholders in your response.
  • 3. Identify and discuss three or four characteristics of ethical leaders as identified by the Business Roundtable, a group of the CEOs of America’s leading companies working to promote a thriving U.S. economy through sound public policy.


Brooks, L. J., & Dunn, P. (2021). Business & professional ethics for directors, executives, & accountants (9th ed.). Cengage

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