Ashford ACC 618 ACC/618 ACC618 Week 6 Final Paper Major Case Study 3 MicroStrategy, Inc.


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Major Case Study 3: MicroStrategy, Inc. [CLOs: 1, 2, 3, 4]. Due by Day 7. Read Major Case Study 3: MicroStrategy, Inc. on page 556 of your text.

In six to eight pages, supported by evidence from your text and from other research (at least two resources are required), answer the following questions:

  1. Evaluate the accounting decisions made by MicroStrategy from an earnings management perspective. What was the company trying to accomplish through the use of these accounting techniques? How did its decisions lead the company down the proverbial “ethical slippery slope?”
  2. What motivated MicroStrategy and its management to engage in this fraud? Use the pressure and incentive side of the fraud triangle to help in answering the question. How would you characterize the  company’s actions in this regard with respect to ethical behavior, including a consideration of Kohlberg’s stages of moral development?

    3. Why is independence considered to be the bedrock of auditor responsibilities? Do you believe PwC and

    its professionals violated independence requirements in the AICPA Code of Professional Conduct? Why or why not? Include in your discussion any threats to independence that existed.

    The paper

    •  Must be six to eight double-spaced pages in length (not including title and references pages) and

      formatted according to APA style as outlined in the Ashford Writing Center.

    •  Must include a separate title page with the following:

    o Titleofpaper
    o Student’sname
    o Coursenameandnumber o Instructor’s name
    o Datesubmitted

    •  Must use at least two scholarly sources in addition to the course text.
    •  Must document all sources in APA style as outlined in the Ashford Writing Center.