Developing Critical Thinking, Ethical Reasoning, and Decision-Making Skills Using a Whistleblowing Case Study

Abstract

This whistleblowing case study engages students in discussions about when and how to disclose differences of opinion on a revenue recognition matter with higher-ups in an organization. Factors to consider include the morality of whistleblowing, confidentiality obligations, the rules of conduct in the American Institute of Certified Public Accountants (AICPA) Code, Sarbanes–Oxley Act (SOX), Dodd–Frank, and the US Supreme Court ruling in Digital Realty, Inc. v. Somers that addresses when to report matters to the Securities and Exchange Commission (SEC). Case questions are designed to promote students’ critical thinking skills, ethical reasoning skills, and decision-making. A flowchart of AICPA ethics rule 2.130.020 (Subordination of Judgment) provides the framework for making decisions when differences exist in financial reporting. The case provides learning objectives, implementation guidance, and teaching notes. The case was used in an accounting ethics course taught at the undergraduate senior level but can also be used in auditing, fraud examination, and advanced financial reporting courses.

Citation

Mintz, S.M. (2024), "Developing Critical Thinking, Ethical Reasoning, and Decision-Making Skills Using a Whistleblowing Case Study", Shawver, T.J. (Ed.) Research on Professional Responsibility and Ethics in Accounting (Research on Professional Responsibility and Ethics in Accounting, Vol. 26), Emerald Publishing Limited, Leeds, pp. 179-210. https://doi.org/10.1108/S1574-076520240000026008