| Course | ACC 423 Detection/Prevention Fraudulent Financial Statements |
|---|---|
| Module | Module 8 |
| Paper type | undergraduate discussion post on the ethical position of the chief financial officer |
| Length | About 390 words, 3 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | BS Accounting |
| Updated | October 2026 |
Free sample paper for ACC 423 Module 8
Module Eight Discussion
Find Me Two Cents
In mid-December, the CEO of the water heater maker closed his office door and told his CFO that the company would report $1.42 a share, as promised to analysts. The forecast said $1.40. "You came from a private company," the CEO said. "Public companies find two cents. Find them." The CFO had been in the role for two years and had signed every certification the law required.
He had three choices. He could comply quietly, approving the warranty rate cut and not asking how sales had suddenly found $14 million of December demand. He could refuse and escalate. Or he could propose legitimate actions, such as delaying discretionary marketing and travel, and report honestly whatever result they produced.
The standards were clear even if the moment was not. The IMA statement requires members to communicate information fairly and objectively, to avoid activities that would prejudice their ability to carry out duties ethically, and, when facing an ethical conflict, to raise it with a supervisor and, if necessary, the next level, which for a CFO is the audit committee (Institute of Management Accountants, 2017). His certification required him to state that the report was accurate and that he had disclosed any fraud involving management.
The research explains why the second choice is hard. Feng et al. (2011) studied CFOs at firms subject to SEC enforcement and found that they were usually not motivated by their own equity incentives; instead, their CEOs had greater power and stronger incentives, suggesting CFOs went along under pressure. Dechow et al. (1996) found that manipulating firms tended to have boards dominated by insiders and CEOs who also chaired the board, the conditions that make refusal lonely.
What would have helped this CFO is what the prevention program in Project Two tries to build: a private quarterly meeting with the audit committee chair, a written policy that estimate changes go to the committee first and a CEO bonus that did not hinge on two cents. Absent those, his best path was the third choice combined with the second: say that the honest result is $1.40, offer the legitimate savings and put the conversation in writing.
For classmates: if you were the CFO in that room, what exact words would you use, and what would you do the next morning?
References
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 1-36. https://doi.org/10.1111/j.1911-3846.1996.tb00489.x
Feng, M., Ge, W., Luo, S., & Shevlin, T. (2011). Why do CFOs become involved in material accounting manipulations? Journal of Accounting and Economics, 51(1-2), 21-36. https://doi.org/10.1016/j.jacceco.2010.09.005
Institute of Management Accountants. (2017). IMA statement of ethical professional practice. Author.
What the ACC 423 Module 8 instructions ask for
The last ACC 423 discussion turns to the ethical position of financial officers, auditors or accountants who face pressure to misstate results. Plan for a few paragraphs that cite a professional code and some research, then replies. The best posts place a specific person in a specific moment, identify the choices realistically available, apply standards such as the IMA Statement of Ethical Professional Practice or the AICPA code, and use research on why officers comply with pressure. Many prompts also ask what organizations can do to support refusal. Avoid moralizing; show how the decision looks from inside, then ask classmates to choose what they would actually say.
How this ACC 423 Module 8 discussion example is built
The post imagines the December meeting in which the CEO tells his CFO the company must report $1.42 a share and asks him to find the two cents. The CFO has three choices: comply quietly, refuse and escalate, or propose legitimate actions such as cutting discretionary spending. The post applies the IMA standards of integrity and credibility and notes his certification obligations. It cites Feng and colleagues' finding that CFOs involved in material manipulations were typically pressured by powerful CEOs rather than enriched, and Dechow, Sloan and Sweeney's findings on the governance of manipulating firms. It identifies what would have made refusal easier and asks classmates what they would say in the room.
Where the ACC 423 Module 8 rubric puts the points
Graders of the ACC 423 closing discussion typically look for a realistic account of the pressures and choices, accurate application of professional standards, use of research and engagement with classmates. Top posts acknowledge that the officer's choices involve real costs, connect the standards to specific actions, such as documenting objections and escalating to the audit committee, and draw on evidence about why officers comply. Posts that simply state the officer should refuse, without addressing how, score lower. Replies that propose a concrete script or escalation step, or that challenge a classmate's assumption about the CEO's power, earn participation credit. Reflection on lessons from the whole course strengthens the post, particularly links back to schemes analyzed in earlier modules.
ACC 423 Module 8 help: the mistakes that cost points
Closing reflection posts usually weaken when they moralize instead of analyzing, or when they treat the decision as obvious. The research suggests it rarely feels obvious to the person in the room, which is what makes the course's subject matter. If your prompt focuses on an auditor, a controller or a board member instead of a CFO, the same structure works: the person, the pressure, the choices, the standards and the support that makes refusal possible. Keep personal details hypothetical. A post that offers the actual words the officer could say, and the next step after saying them, usually earns more than one that describes ethics in general.
Get ACC 423 Module 8 written to your instructions
Share the ACC 423 Module 8 prompt and any case it uses, and the post will set out the officer's choices, apply professional standards and research and identify practical steps, closing with a question for classmates. The first request is free, and most are ready in two days. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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ACC 423 Module 8 questions, answered
Where can I find a free ACC 423 Module 8 Discussion sample?
This page includes the full ACC 423 Module 8 post on a CFO asked to find two cents a share, with standards and research applied.
What ethical standards apply to CFOs?
Professional codes such as the IMA Statement of Ethical Professional Practice and the AICPA Code of Professional Conduct, plus legal certification duties under the Sarbanes-Oxley Act for public companies.
Why do CFOs participate in financial reporting fraud?
Research finds that many are pressured by powerful CEOs rather than seeking personal gain, and that CEOs' equity incentives predict CFO involvement.
What should a CFO do when asked to misstate results?
Decline, propose legitimate alternatives, document the request and escalate to the audit committee if pressure continues, following the organization's policies and professional standards.
Can earnings targets be met legitimately late in a quarter?
Sometimes, through real decisions such as reducing discretionary spending, as long as they are reported honestly. Recording revenue or reducing reserves without support is not legitimate.