Case study: Nortel Networks Corporation
Read the Case Study: Nortel Networks Corporation: Ethical Missteps. (Links to an external site.)
https://uwaterloo.ca/centre-for-accounting-ethics/sites/ca.centre-for-accounting-ethics/files/uploads/files/nortel_case.pdf
After reading the case study, describe the ethical breach that was entered into by leadership at Nortel.
Use the three components of the Fraud Triangle to evaluate the actions of the leadership.
Describe how the tone at the top contributed to this fraudulent activity.
How did the Audit Committee and Board fail in their responsibilities?
Describe how various stakeholders (employees, stockholders, and the community) would have been affected by the actions of those in leadership.
Requirements:
Your written paper should be full 5 pages in length not counting the title and reference pages, which you must include.
Use terms, evidence, and concepts from class readings.
You need to cite at least 4-5 sources for this assignment, outside of the textbook.
Your paper must be formatted according to APA format.
Reference: Robinson, L. (2005) Nortel Networks Corporation: Ethical Missteps. Waterloo, Ontario, Canada: University of Waterloo. Retrieved from https://uwaterloo.ca/centre-for-accounting-ethics/sites/ca.centre-for-accounting-ethics/files/uploads/files/nortel_case.pdf
Chapters 7 & 8 in Ethics in Accounting: A Decision-Making Approach
Albrecht, C., Holland, D., Malagueño, R., Dolan, S., & Tzafrir, S. (2015). The role of power in financial statement fraud schemes. Journal of Business Ethics, 131(4), 803-813.
Kassem, R., & Higson, A. W. (2016). External auditors and corporate corruption: Implications for external audit regulators. Current Issues in Auditing, 10(1), P1-P10.
Kulikova, L. I., & Satdarova, D. R. (2016). Internal control and compliance-control as effective methods of management, detection, and prevention of financial statement fraud. Academy of Strategic Management Journal, 15, 92-103.
Bazrafshan, S. (2016). Exploring expectation gap among independent auditors’ points of view and university students about importance of fraud risk components. Iranian Journal of Management Studies, 9(2), 305-331.
Committee of Sponsoring Organizations of the Treadway Commission. (2017). Enterprise risk management – integrated framework. New York, NY: PricewaterhouseCoopers.
Klein, G. (2016). Ethics in accounting: A decision-making approach. Hoboken, NJ: John Wiley & Sons, Inc.