Previous Case Summaries

Question 1

Briefly describe the Goldman Sachs case

Answer 1

It was a banking case where they issued reports on their securities that were different from their actual securities

Question 2

What does the SEC’s complaint against Goldman Sachs allege?

Answer 2

That John Paulson choose mortgage pools that were dogs, which would benefit both Paulson and Goldman

Question 3

How did Ice-T describe the Cop Killer song?

Answer 3

Depicting despair and anger that is in American inner cities

Question 4

Briefly describe the Ice-T and the Body Count album case

Answer 4

It was a freedom of speech case where they debated releasing the Cop Killer song due to controversial lyrics

Question 5

What did university officials and administration do wrong in the Penn State case?

Answer 5

They acted inappropriately when knowledge of child abuse came to light

Question 6

What is the ethical dilemma in the Penn State Case?

Answer 6

Should university officials report Sandusky’s actions to the state’s Department of Public Welfare

Question 7

What is the ethical dilemma in the Guns case?

Answer 7

Should the government pass more gun regulations

Question 8

Briefly describe the Fannie Mae case

Answer 8

It is a housing case where they fudged their numbers in order to get a commission earnings bonus

Question 9

What is the ethical dilemma in the Rogues - Bad Apples or Bad Barrels case?

Answer 9

Should steps be taken to fix the internal control problem instead of just blaming it on rogue traders

Question 10

Briefly describe the WorldCom case

Answer 10

It’s a earnings management case where they capitalized their ordinary expenses in order to boost earnings

Question 11

Briefly describe the Enron case

Answer 11

It’s an earnings management case where they engaged in mark-to-market accounting

Question 12

Briefly describe the Arthur Andersen case

Answer 12

It’s an obstruction of justice case where they started to shred documents related to Enron when they found out about the investigation

Question 13

Briefly describe the HealthSouth case

Answer 13

It’s an earnings management case where they committed accounting fraud by fixing their numbers

Question 14

Briefly describe the Tyco case

Answer 14

It’s an earnings management case where they misused goodwill, spring loading, the KELP Program, and payed for Kozlowski’s personal expenses