ABC Learning went public in 2001 with a market capitalization of $25,000,000. After a period of aggressive expansion its market capitalization reached $2,500,000,000. The company then went into liquidation in 2008. You are required to provide an analysis of ABC Learning’s downfall from the point of view of corporate social responsibility, common good and stewardship.
Your report should cover the following:
1. What was the purpose of the audit, and was it achieved? Discuss.
2. Provide an evaluation of the collapse of ABC Learning about ‘common good’, ‘stewardship’, and ‘corporate social responsibility’.
3. Identify ethical issues which contributed to the downfall of ABC Learning by stating the underlying ethical theory (ies).
4. How did unethical practices affect stakeholders? Discuss. Critically evaluate the role of auditors in detecting unethical conduct.
Your report should consist of the following sections: