Exam 2: Cognitive Processes and Ethical Decision Making in Accounting

Keesha is the CEO of a publicly-owned company. She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession. The company's stock price has declined by 20 percent. The CFO comes up with a scheme to hide debt and inflate revenues by selling underperforming assets to a special purpose entity affiliated with the company. Keesha is concerned about possible effects on the creditors but ultimately she agrees to the accounting. Keesha is reasoning at:

As an executive in a mid-sized manufacturing firm, Cal finds himself thrown together with Harry, who works for a division of the firm that Cal supervises. He and Harry are in the same community; their children are in the same schools; they often show up at the same social functions; and they play golf together fairly frequently. One day, to Cal's deep dismay, he hears that Harry has been implicated in some financial irregularities at work. The issues while serious leave some room for doubt. There is reason to think Harry got ensnared by regulations, though he may have afterwards tried to cover up that entanglement by being less than forthright. Yet after what Cal observes to be a careful audit and investigation, Harry is let go from his job. Harry comes to Cal and asks for a letter of recommendation. What should Cal do? What are the consequences of the options?

Rest's "Four Component Model of Morality" can best be described as:

Which of the following might NOT describe Heinz's thought process in deciding whether to steal the drug if he were at stage 6?

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

An example from the book of someone who may have experienced cognitive dissonance is:

The ethical dilemma for Hailey in "Taxes and the Cannabis Business" case can best be described as a:

How does Kidder's structure for decision-making relate to the Integrated Model presented in the chapter?

Wanda is faced with an ethical dilemma. She knows her supervisor, the CFO, wants to accelerate the recoding of revenue to an earlier period to "make the numbers," but Wanda is convinced this would violate GAAP. If Wanda reasons at stage 4 of Kohlberg's model she is most likely to:

Carpendale suggests that moral reasoning is viewed as a process of coordinating all perspectives involved in a moral dilemma. Moral reasoning takes place in which of the following steps in Rest's Model?

The ethical domain in accounting and auditing refers to:

Explain how virtue interacts with moral development in Thorne's Integrated Model of Ethical Decision-making.

When Sally is asked why she should share her toys with her sister, she responds by saying "Because my mom says I have to and if I don't I'll go to time-out." In which stage of moral development is Sally?

Which of the following connect the integrated ethical decision-making process with Rest's framework?

What should be the first step in decision making when faced with an ethical dilemma?

In the A Team Player case discussed in the chapter, which is the primary reason and rationalization that Barbara may need to counter for not informing Jessica of the inventory deficiency?

In Thomas Jones' model of moral intensity it can be said about accounting that:

What ethical action should Daniel take in A Faulty Budget?

Assume you were assigned a term paper and decided to surf the web to identify a provider of papers for a fee. You chose what you thought was the best paper available. With respect to Rest's model of morality it can be said that:

In the Racially Charged Language case, which of the following is not one of the EDI initiatives discussed in the case: