Question 1

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:

Accepted Answer

A) The due care principle 
B) Confidentiality 
C) One's reliability obligation 
D) Public interest obligation 
A) The due care principle 
B) Confidentiality 
C) One's reliability obligation 
D) Public interest obligation

Question 2

Respect is an important character of behavior because:

Accepted Answer

A) It entails a loyalty obligation to one's superior 
B) It enables one to perform professional services competently 
C) It is critical to maintaining one's integrity 
D) It encompasses attributes of how we should treat others 
A) It entails a loyalty obligation to one's superior 
B) It enables one to perform professional services competently 
C) It is critical to maintaining one's integrity 
D) It encompasses attributes of how we should treat others

Question 3

Steve is deep in debt due to a gambling problem.He is the bookkeeper for a family-owned business,Cal Poly Greenery.The company has only three employees - Steve,the husband,and the wife.All three have been friends for many years.One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan.Steve convinces the loan shark to give him another day.The following day Steve writes a check on the company's books to himself for $20,000.Since he reconciles the bank accounts and prepares the financial statements,Steve knows it's unlikely the owners will ever know about what he has done.From an ethical perspective,Steve has:

Accepted Answer

A) Violated the trust placed in him by the owners 
B) Risked his reputation if the loan shark finds out 
C) Risked his ability to continue working for Cal Poly Greenery 
D) All of the above 
A) Violated the trust placed in him by the owners 
B) Risked his reputation if the loan shark finds out 
C) Risked his ability to continue working for Cal Poly Greenery 
D) All of the above

Question 4

Which of the following is NOT a pillar of character according to the Josephson Institute?

Accepted Answer

A) Caring 
B) Citizenship 
C) Respect 
D) Judgmental 
A) Caring 
B) Citizenship 
C) Respect 
D) Judgmental

Question 5

Jane finds a material misstatement while auditing a client's accounts receivables.Her senior tells her to ignore the misstatement so that the client does not get upset.Jane wants to be viewed as a team player in order to advance in the firm so Jane follows her senior's instructions and ignores the misstatement.Which ethical theory did Jane use to make her decision?

Accepted Answer

A) Egoism 
B) Justice 
C) Virtue ethics 
D) Utilitarianism 
A) Egoism 
B) Justice 
C) Virtue ethics 
D) Utilitarianism

Question 6

Assume you are taking an exam and you clearly see that your friend is cheating.Your professor does not notice it.What is the most appropriate action for you to take if you are an ethical person?

Accepted Answer

A) You pretend not to notice it. 
B) You discuss the matter with your friend after the exam. 
C) You also cheat the exam because your friend does. 
D) Send a text message to your friend and tell them to stop cheating. 
A) You pretend not to notice it. 
B) You discuss the matter with your friend after the exam. 
C) You also cheat the exam because your friend does. 
D) Send a text message to your friend and tell them to stop cheating.

Question 7

Bob is being pressured by his superior to go along with improper accounting and told he is expected to be a team player.Which of the following statements best characterizes those expectations?

Accepted Answer

A) Independence 
B) Confidentiality 
C) Loyalty 
D) Utilitarianism 
A) Independence 
B) Confidentiality 
C) Loyalty 
D) Utilitarianism

Question 8

Ethical relativism can best be described as a:

Accepted Answer

A) Point of view that morality is relative to the norms of one's culture. 
B) Concept that holds that integrity should be maintained in the face of pressure by others. 
C) An ethical reasoning method that holds one should always act out of self-interest. 
D) An ethical reasoning method that holds one should always consider the effect of one's actions on others. 
A) Point of view that morality is relative to the norms of one's culture. 
B) Concept that holds that integrity should be maintained in the face of pressure by others. 
C) An ethical reasoning method that holds one should always act out of self-interest. 
D) An ethical reasoning method that holds one should always consider the effect of one's actions on others.

Question 9

When an employee is given a job evaluation,he has a right to expect:

Accepted Answer

A) Fair evaluations 
B) Caring and empathy on the part of the evaluator 
C) 360 degree evaluations from everyone in the firm 
D) Evaluations of technical,not personal skills 
A) Fair evaluations 
B) Caring and empathy on the part of the evaluator 
C) 360 degree evaluations from everyone in the firm 
D) Evaluations of technical,not personal skills

Question 10

Explain the steps that should be taken by an internal accountant/CMA when there is a difference of opinion with one's supervisor on an accounting or financial reporting manner.

Accepted Answer

Since the conflict is with the superviso

Question 11

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

Accepted Answer

A) The importance of integrity in decision making 
B) The importance of loyalty to one's superior 
C) The importance of whistleblowing when financial wrongdoing exists 
D) The importance of maintaining confidentiality 
A) The importance of integrity in decision making 
B) The importance of loyalty to one's superior 
C) The importance of whistleblowing when financial wrongdoing exists 
D) The importance of maintaining confidentiality

Question 12

The best restatement of Kant's categorical imperative is:

Accepted Answer

A) Do to others as you would have everyone do unto you 
B) Consider others needs before you act 
C) That those with a smaller stake should have a smaller say compared to those with a bigger stake 
D) That the ends justifies the means 
A) Do to others as you would have everyone do unto you 
B) Consider others needs before you act 
C) That those with a smaller stake should have a smaller say compared to those with a bigger stake 
D) That the ends justifies the means

Question 13

A danger of situational ethics is that it can be used to rationalize a wrong-doing.Such rationalizations may be seen in all of the following examples except:

Accepted Answer

A) Cheating at the University of North Carolina 
B) Penn State scandal 
C) Betty Vinson's actions at World Com 
D) DigitPrint case discussed in the chapter 
A) Cheating at the University of North Carolina 
B) Penn State scandal 
C) Betty Vinson's actions at World Com 
D) DigitPrint case discussed in the chapter

Question 14

Which of the following elements is not an integral part of Rights Theory?

Accepted Answer

A) Act based on the consequences of one's actions on others 
B) Treat people as an end and not merely as a means to an end 
C) Act in a way you would want others to act in similar situations 
D) Act in a way that is universally accepted 
A) Act based on the consequences of one's actions on others 
B) Treat people as an end and not merely as a means to an end 
C) Act in a way you would want others to act in similar situations 
D) Act in a way that is universally accepted

Question 15

A CPA would violate the Due Care Principle if he/she:

Accepted Answer

A) Undertook a professional engagement without having the requisite background,knowledge and experience. 
B) Specializes in the industry of the client,even offering training classes for other accounting firms on the industry. 
C) The accounting firm uses two external partner reviews on high risk audits or clients. 
D) Performs tax services for an audit client with audit committee approval. 
A) Undertook a professional engagement without having the requisite background,knowledge and experience. 
B) Specializes in the industry of the client,even offering training classes for other accounting firms on the industry. 
C) The accounting firm uses two external partner reviews on high risk audits or clients. 
D) Performs tax services for an audit client with audit committee approval.

Question 16

Teleology deals with:

Accepted Answer

A) Consequences of actions 
B) Fairness to others 
C) Respecting the rights of others 
D) Following prescribed virtue characteristics 
A) Consequences of actions 
B) Fairness to others 
C) Respecting the rights of others 
D) Following prescribed virtue characteristics

Question 17

What is the role of a code of professional conduct and standards of ethical behavior for accountants and auditors?

Accepted Answer

A code of conduct and standards of ethic

Question 18

The biggest problem in implementing a rights approach to decision making is:

Accepted Answer

A) The interests of others may be subservient to self-interests 
B) It is difficult to weigh harms and benefits 
C) It relies on moral absolutes 
D) It can be difficult to determine criteria to distinguish equals from unequal claims 
A) The interests of others may be subservient to self-interests 
B) It is difficult to weigh harms and benefits 
C) It relies on moral absolutes 
D) It can be difficult to determine criteria to distinguish equals from unequal claims

Question 19

Aristotle believed that __________ always preceded the choice of action.

Accepted Answer

A) Empathy 
B) Due Care 
C) Deliberation 
D) Loyalty 
A) Empathy 
B) Due Care 
C) Deliberation 
D) Loyalty

Question 20

Objectivity requires that a CPA should:

Accepted Answer

A) Maintain a mental attitude of intellectual honesty and independence 
B) Maintain a mental attitude of intellectual honesty and impartiality 
C) Act in accordance with the best interests of one's client 
D) Act in accordance with the best interests of one's employer 
A) Maintain a mental attitude of intellectual honesty and independence 
B) Maintain a mental attitude of intellectual honesty and impartiality 
C) Act in accordance with the best interests of one's client 
D) Act in accordance with the best interests of one's employer

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:

Respect is an important character of behavior because:

Which of the following is NOT a pillar of character according to the Josephson Institute?

Assume you are taking an exam and you clearly see that your friend is cheating.Your professor does not notice it.What is the most appropriate action for you to take if you are an ethical person?

Bob is being pressured by his superior to go along with improper accounting and told he is expected to be a team player.Which of the following statements best characterizes those expectations?

Ethical relativism can best be described as a:

When an employee is given a job evaluation,he has a right to expect:

Explain the steps that should be taken by an internal accountant/CMA when there is a difference of opinion with one's supervisor on an accounting or financial reporting manner.

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

The best restatement of Kant's categorical imperative is:

A danger of situational ethics is that it can be used to rationalize a wrong-doing.Such rationalizations may be seen in all of the following examples except:

Which of the following elements is not an integral part of Rights Theory?

A CPA would violate the Due Care Principle if he/she:

Teleology deals with:

What is the role of a code of professional conduct and standards of ethical behavior for accountants and auditors?

The biggest problem in implementing a rights approach to decision making is:

Aristotle believed that __________ always preceded the choice of action.

Objectivity requires that a CPA should:

Cognitive Processes and Ethical Decision Making in Accounting

Organizational Ethics and Corporate Governance

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters

Exam 1: Ethical Reasoning: Implications for Accounting

An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:

Respect is an important character of behavior because:

Which of the following is NOT a pillar of character according to the Josephson Institute?

Assume you are taking an exam and you clearly see that your friend is cheating.Your professor does not notice it.What is the most appropriate action for you to take if you are an ethical person?

Bob is being pressured by his superior to go along with improper accounting and told he is expected to be a team player.Which of the following statements best characterizes those expectations?

Ethical relativism can best be described as a:

When an employee is given a job evaluation,he has a right to expect:

Explain the steps that should be taken by an internal accountant/CMA when there is a difference of opinion with one's supervisor on an accounting or financial reporting manner.

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

The best restatement of Kant's categorical imperative is:

A danger of situational ethics is that it can be used to rationalize a wrong-doing.Such rationalizations may be seen in all of the following examples except:

Which of the following elements is not an integral part of Rights Theory?

A CPA would violate the Due Care Principle if he/she:

Teleology deals with:

What is the role of a code of professional conduct and standards of ethical behavior for accountants and auditors?

The biggest problem in implementing a rights approach to decision making is:

Aristotle believed that __________ always preceded the choice of action.

Objectivity requires that a CPA should:

Cognitive Processes and Ethical Decision Making in Accounting

Organizational Ethics and Corporate Governance

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters