David Sheridan provided statements that did non reflect Global’s current fiscal state of affairs which mislead creditors and investors. Borrowing more money would hold indicated that the concern was in the procedure of losing assets which would do stakeholders withdraw and to stop puting with the company. This is similar to the Enron dirt. which greatly affected stakeholders non merely financially but besides morally. Harmonizing the American diary of concern ( 2006 ) . “Enron’s top directors chose stakeholder misrepresentation and short-run fiscal additions for themselves. which destroyed their personal and concern reputes and their societal standing” . After reexamining the AICPA’s Articles of Professional Conduct. I believe that David violated Article I and III. Harmonizing to Edmonds. T. ( 2010 ) . Article I Responsibilities- “In transporting out their duties as professionals. members should exert sensitive professional and moral judgements in all their activities” . Article III Integrity-

“To maintain and broaden public assurance. members should execute all professional duties with the highest sense of integrity” ( p. 65 ) . There are three characteristics of the fraud trigon. Edmonds. T. ( 2010 ) provinces. “Opportunity is shown at the caput to the trigon because without chance fraud could non exist” . David found an chance that he thought would profit the company. which allowed Global to conceal non-profitable assets in another company without upseting investors and creditors. It besides provided an chance. as Global would non necessitate to borrow more money.

Edmonds. T. ( 2010 ) explains. “The 2nd component of the fraud trigon recognizes force per unit area as a cardinal ingredient of misconduct. A director who is told “either do the Numberss or you are fired” is more likely to rip off than one who is told to “tell it like it is. ” ( p. 67 ) . I believe that David felt the force per unit area as to bring forth consequences in order to maintain the concern from neglecting. The 3rd component of the fraud trigon is rationalisation. Harmonizing to Edmonds. T. ( 2010 ) . “Few persons think of themselves as immoralities. They develop rationalisations to warrant their misconduct” ( p. 67 ) . I believe David and the others involved believed that they were non really victimizing the people since they had planned to equilibrate the sheets on the fiscal statements when the economic system picks up or the concern stock monetary values rise.

Edmonds. T. ( 2010 ) . Survey of Accounting. 2nd Edition ( 2nd erectile dysfunction ) . McGraw-Hill Primis Custom Publishing.

Petrick. J. A. . & A ; Scherer. R. F. ( 2006 ) . The Enron Scandal and the Neglect of Management Integrity Capacity. American diary of concern. 18 ( 1 ) . 126.