AAA Bringing the Profession to Classroom

Transcript AAA Bringing the Profession to Classroom

Bringing the Profession to the Classroom: An Overview of the Curriculum Tools and Programs KPMG Offers K P M G L L P

AAA Annual Meeting San Francisco, CA Tuesday, Aug 3, 2010, 2:00-3:30pm

Presenters Dr. Steven D’Agustino Director RETC: Center for Professional Development Bea Sanders National Director of Faculty Relations Dr. Barbara M Porco Director of Program Development Accounting Faculty Blane Ruschak Executive Director of University Relations and Recruiting

Fordham University KPMG, LLP

Overview of Presentation

The Ethical Compass: A Toolkit for Integrity in Business KPMG Alumni Partners Teaching Initiative The Professor Residency Program Leveraging IFRS for Academe The Accounting Doctoral Scholars Program Additional Resources on the Faculty Portal: Curriculum Tools & Programs Handout 3

The Ethical Compass

A Toolkit for Integrity in Business

©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Ethical Compass Toolkits for the Classroom Total of EIGHT Toolkits:

Video Dilemmas Role Plays Case Studies Applied Ethics Cases SOX Challenge Code Challenge Shades of Gray Burden of Proof (available 2011) ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Video Dilemmas No lecture KPMG Proprietary Public Accounting Based Sophomore/Junior/Senior Success Dependent on Instructor (“what if” scenarios) Modular Structure Concepts (i.e. Retaliation) Can Be Adapted to Other Business Majors Classroom (Business), BAP Launched in 2007

Role Plays 50/50 Lecture/Role Plays Basic AICPA Code of Conduct Public Accounting Based Sophomore/Junior Success Dependent on Size of Class (small classes better); <75 Select Role Play students in advance Certain Role Plays Adaptable to Other Business Majors Classroom (Accounting), BAP Launched in 2007

Case Studies 50/50 Lecture/Cases Teaches general ethics decision making model known as CARE2 Cases are Accounting Based

Freshmen; Sophomore; Junior; or Seniors

Success dependent on instructor (“what if” scenarios) Concepts (i.e. Steroid Use)

Can be adapted to other majors

Classroom (Business), BAP, Career Center Personnel Launched in 2007

Applied Ethics Case Studies 50/50 Lecture/Cases Teaches business ethics decision making model known as Applied CARE2 Cases are accounting based Appropriate for any size class Junior; Senior; or Masters Classroom, BAP, Career Center Launched in 2008

Code of Conduct Challenge 75/25 Lecture/Game Teaches Detailed Code of Conduct 100% Accounting Based Sophomore/Junior Works Best if Taught by Faculty Classroom (Accounting), BAP Launched in 2008

Sarbanes Oxley Act Challenge 75/25 Lecture/Game Teaches specific Sarbanes Oxley Rules and Regulations 100% Accounting Based Sophomore; Junior; Senior Works best if taught by faculty Classroom – Accounting classes or BAP Launched in 2008

Description of the Shades of Gray

The Shades of Gray is a series of ethical scenarios to be discussed by students. Organized as a group activity, the scenarios are designed to help students recognize ethical issues and measure their ethical influence on a group. The Shades of Gray activity is accompanied by a presentation that will discuss the obstacles people face when assessing the risks that accompany decisions with ethical dimensions.

Shades of Gray Launched in 2009

Lecture/Game Shades of Gray Teaches ethical issues and influence Auditing Class Target audience Juniors and seniors Delivery Collaborative format: faculty and practitioner Classroom ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Shades of Gray Game Card – Round One Title of Scenario Your Letter Option No. of Others Agree (A) Positive Leader Points (B) 100 Total Positive Points (A*B)= C Family Influence Corporate Discount Firm Policy Professional Practice Friend in Need Workplace Relationship 100 100 100 100 100 No. of Others Disagree (D) Negative Leader Points (E) (100) (100) (100) (100) (100) (100) Total Negative Points (D*E)=F Net Influence Score (C+F)=G Total Points

Workplace Relationship

Workplace Relationship Brett, a manager, is having a romantic relationship with Corey, a director in a different department. As a result of possessing unique knowledge and experience, Brett has been selected to serve as the auditor manager of a multi-disciplinary engagement with a major client. This engagement presents a significant opportunity for career advancement. Brett has just learned that Corey is assigned to the team on this engagement.

What should Brett do?

Options for Brett A. Inform the performance manager of the relationship with Corey B. Say nothing about the relationship C. Recommend that someone (instead of Brett) else be assigned to this engagement without disclosure D. Ask Corey to decline to participate on the engagement E. End the relationship with Corey and accept the assignment

Shades of Gray Game Card Round One – Measures Influence Title of Scenario Your Letter Option No. of Team Agreed (A) Positive Leader Points (B) Total Positive Points (A*B)= C No. of Team Disagreed (D) Negative Leader Points (E) Total Negative Points (D*E)=F Net Influence Score (C+F)=G 100 -100 Taking the Test Friend in Need The Job Offer Charging Time Social Responsibility Workplace Environment

E 1

100 100 100 100 100

0 10

-100 -100 -100 -100 -100

-1,000 -1,000

Plot this score!

©2009 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2009 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

Assessing Risk

How confident are you in your ability to assess risk?

When is it wise to be cautious?

©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

Risk Perception

Chauncey Starr found that people will accept risks 1,000 greater if they are voluntary (driving a car) than if they are involuntary (a nuclear disaster).

©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

The Limits of Knowledge

“There are known knowns. There are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. There are things we do not know we don’t know.” Donald Rumsfeld Former Secretary of Defense

©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

Social Proof Herd Mentality

A psychological phenomenon that occurs when people are unable to determine the appropriate mode of behavior. One assumes that others know more about the situation and know better what to do.

Scoring Rationale Table Workplace Relationship O p t i o n A Individual Impact PI

-100

CI RI + Net II Collective Impact FI

+100 +100 +100 +200

+200

PI = Net CI

+200 +600

Net Impact

+700

+100 -100 -100 -100 -200 -200 -200 -600 -700

C D E

+100 -100 0 +100 +100 -100 0 -100 0 0 -100 -100 -100 -300 -200 -200 0 -200 0 0 -200 0 -200 -600 -200 -100 -900 ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Shades of Gray Game Card Round Two: Measures Ethics Title of Scenario Your Letter Option Net Impact Points from Tables Cumulative Ethical Option Net Score Taking the Test Friend in Need The Job Offer Charging Time Social Responsibility Workplace Environment

E -900 ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

-900

Interpretation of Game Scores

Positive

High Ethics Low Influence High Ethics High Influence

Negative

Low Ethics Low Influence Low Ethics High Influence

Negative

Influence

Positive ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Interpretation of Game Scores

Positive

High Ethics Low Influence High Ethics High Influence Low Ethics Low Influence Low Ethics High Influence

Negative Negative

Influence

Conclusion: Proceed in which direction?

The number of variables, possible consequences and overlooked or misunderstood facts, makes accurate risk assessment close to impossible. The ability to predict the impacts of decisions is elusive and often wildly overestimated. In the absence of complex mathematical models, an individual is left with only instinct and an often vague sense of how to proceed.

©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco and Steven D’Agustino. Used with Permission. All rights reserved.

Shades of Gray Ethical Decisions Doing the “ right thing ” is the only effective and reliable method of minimizing risk.

Consider both individual and collective impact of your decisions Ethical decisions allow one to be confident of the outcome!

Burden of Proof Students will be presented with a series of “suspects” and be asked to conduct an investigation to determine who most likely committed an act of fraud.

Burden of Proof Available 2011

Lecture/Game Burden of Proof Teaches professional skepticism Target audience Accounting Class All levels Delivery Collaborative format: faculty and practitioner Classroom ©2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. For Training Purposes Only. ©2010 Barbara Porco/Steven D’Agustino. Used with Permission. All rights reserved.

Some Examples of Deployment Beta Alpha Psi (BAP) – Regional Meetings Penn State – BAP events Penn State – Accounting Classes Notre Dame – BAP events OSU – Career Center NACE – Career Center EFWA – Annual Conference BYU – Junior Core Program Fordham University – Freshman Enrichment Program Fordham University – Accounting Ethics classes

Recommendations for Success Flexibility Mix and Match Interactive Emphasis Real Examples Challenge Thinking via “What If’s”

KPMG ALUMNI PARTNERS TEACHING INITIATIVE

KPMG Alumni Partners Teaching Initiative

Discussed concept with Educators Advisory Board

Interest/need for PQ faculty Key elements to consider

Developed educational webcast for interested alumni

Awareness/expectations of university environment Invaluable assistance from educators-Kevin Stocks, Catherine Burns, Susan Crosson, Scott Showalter

Created a task force of educators for feedback

Content of Instructor Profile Facilitate access for program administrators

Faculty Portal site and search tool 34

Faculty Portal – Alumni Instructor Profiles 35

Faculty Portal – Alumni Instructor Profiles 36

Faculty Portal – Alumni Instructor Profiles 37

Faculty Portal – Alumni Instructor Profiles 38

Faculty Portal – Alumni Instructor Profiles 39

Faculty Portal – Alumni Instructor Profiles 40

Faculty Portal – Alumni Instructor Profiles 41

Faculty Portal – Alumni Instructor Profiles 42

KPMG Professor Residency Program

Launched four years ago – residencies in Tax, Audit and Advisory Services Total of 19 faculty to date Period of residency from 3 to 5 months; some longer A paid residency that is available at KPMG offices across the country Applications are accepted for current and future years Key contact: Malana White at [email protected]

Leveraging IFRS for Academe

Two-day IFRS Seminars for Faculty co sponsored with schools

Two seminars held this spring: University of Connecticut and San Diego State University Slide presentation with instructor notes and 10 cases are posted on the Faculty Portal

Series of monthly IFRS webcasts

Recently launched a series of monthly webcasts thru Jan, 2011 More than forty webcasts available for replay on Faculty Portal

Leveraging IFRS for Academe (cont’d)

IFRS e-Learning Modules for Classroom

Two pilots held in the Fall with 3 modules Preparing to launch a case competition for case studies to support modules in the classroom

AAA/KPMG Faculty Survey

Collaboration with AAA to gauge IFRS in the curriculum Third survey underway – takes 10 minutes

Accounting Doctoral Scholars Program

First year of ADS program very successful

27 scholars enrolled in doctoral programs Fall 2009; 10 of the scholars are from KPMG 5 additional doctoral candidates (not ADS scholars) also enrolled in doctoral programs

Year 2 of the program repeats success

39 participating universities for 2010 enrollments 29 scholars will enroll in doctoral programs next Fall 11 of the scholars are from KPMG

Year 3 applications accepted from July 1 thru Oct 1

38 participating universities for 2011 enrollments

AAA Bringing the Profession to Classroom

Transcript AAA Bringing the Profession to Classroom

Fordham University KPMG, LLP

Overview of Presentation

The Ethical Compass

A Toolkit for Integrity in Business

Description of the Shades of Gray

Workplace Relationship

How confident are you in your ability to assess risk?

When is it wise to be cautious?

Chauncey Starr found that people will accept risks 1,000 greater if they are voluntary (driving a car) than if they are involuntary (a nuclear disaster).

Influence

Influence

KPMG ALUMNI PARTNERS TEACHING INITIATIVE

KPMG Alumni Partners Teaching Initiative

KPMG Professor Residency Program

Leveraging IFRS for Academe

Leveraging IFRS for Academe (cont’d)

Accounting Doctoral Scholars Program

CURRICULUM TOOLS AND PROGRAMS HANDOUT

Questions?