Question 1

The case of Steve Jobs's Health deals with:

Accepted Answer

A)  Disclosure issues beyond financial information 
B)  Disclosures required of members of board of directors 
C)  Fiduciary obligations of a CEO 
D)  Fiduciary obligations of a board of directors 
A)  Disclosure issues beyond financial information 
B)  Disclosures required of members of board of directors 
C)  Fiduciary obligations of a CEO 
D)  Fiduciary obligations of a board of directors

Question 2

A strong and effective internal control environment can be enhanced by:

Accepted Answer

A)  Financial statements that present fairly financial position and results of operations 
B)  Giving the internal auditors direct and unrestricted access to the audit committee 
C)  Having the internal auditors report to the external auditors 
D)  Having the external auditors report to the audit committee 
A)  Financial statements that present fairly financial position and results of operations 
B)  Giving the internal auditors direct and unrestricted access to the audit committee 
C)  Having the internal auditors report to the external auditors 
D)  Having the external auditors report to the audit committee

Question 3

As part of a required ethics course, students were required to take an online 90 minute ethics final. Facing graduation and many pressures with starting new jobs and moving, the students worked together to complete the final. Since the essays were all closely worded the same, the instructor could determine that some sort of cheating on the ethics exam had taken place. Using ethical decision making model, what should the school, instructor and students do? Would the suggested solution be different if the school had an honor code?

Accepted Answer

The students used an egoism approach to

Question 4

The Bennie and the Jets case deals with:

Accepted Answer

A)  Proper income classification of rebates received from insurers 
B)  Accelerating revenues 
C)  Delaying expenses 
D)  Failing to record rebates from insurers 
A)  Proper income classification of rebates received from insurers 
B)  Accelerating revenues 
C)  Delaying expenses 
D)  Failing to record rebates from insurers

Question 5

Which of the following is not used to overcome the agency problem?

Accepted Answer

A)  Executive compensation 
B)  Audited financial statements 
C)  Related party transactions 
D)  Internal controls 
A)  Executive compensation 
B)  Audited financial statements 
C)  Related party transactions 
D)  Internal controls

Question 6

A school district decided to add an ethics officer to its administration. The district had watched how often the district was dealing with ethically sensitive situations. After doing research into how many organizations used an ethics officer and the desired education and background for such an officer, the district advertised for a person with the following qualifications: education in accounting, finance, or criminal justice; CPA preferred; and experience with compliance or audits. The district hired a person with a CPA license, degree in accounting and experience as an internal auditor doing compliance audits.
At the press conference to introduce the new ethics officer, a local news reporter pointedly asked about the candidate's background. The ethics officer stated as a CPA he knew how to handle ethical issues and he had the highest integrity. The reporter decided to a little more background research before writing the article. The state board of public accountancy of that state maintained an online database for the public to verify that a CPA was currently licensed. When the reporter could not find the ethics officer as a currently licensed CPA, he called the district and the ethics officer for a comment.
What should the district and ethics officer do? Use the ethical decision making model to defend your answer.

Accepted Answer

Many articles in the news often deal wit

Question 7

Backdating of stock options is unethical because:

Accepted Answer

A)  It favors top executives over other company employees with respect to the number of options 
B)  It purposefully manipulates the option criteria that determine their value 
C)  It changes the exercise price on options to benefit top executives 
D)  All of these 
A)  It favors top executives over other company employees with respect to the number of options 
B)  It purposefully manipulates the option criteria that determine their value 
C)  It changes the exercise price on options to benefit top executives 
D)  All of these

Question 8

Under the Sarbanes-Oxley Act, which of the following bodies must contain members that are 100% independent of management?

Accepted Answer

A)  Board of directors 
B)  Audit committee 
C)  Internal auditors 
D)  All of these 
A)  Board of directors 
B)  Audit committee 
C)  Internal auditors 
D)  All of these

Question 9

In the Ethical Dissonance Model, a high person-organization fit requires:

Accepted Answer

A)  High organizational ethics, low individual ethics 
B)  High organizational ethics, high individual ethics 
C)  Low organizational ethics, high individual ethics 
D)  Low organizational ethics, low individual ethics 
A)  High organizational ethics, low individual ethics 
B)  High organizational ethics, high individual ethics 
C)  Low organizational ethics, high individual ethics 
D)  Low organizational ethics, low individual ethics

Question 10

One of the duties of a board of directors is to protect the interests of stakeholders. Which of the following is an example of protecting such interests?

Accepted Answer

A)  Back dating options for executives 
B)  Deceptive business practices 
C)  Off balance sheet financing 
D)  Transparent financial reporting 
A)  Back dating options for executives 
B)  Deceptive business practices 
C)  Off balance sheet financing 
D)  Transparent financial reporting

Question 11

Tommy Hubbs is the controller of XYZ Corporation. Recently, Hubbs was approached by Carol Franks, the CFO, and told in no uncertain terms to record $100,000 in revenue at the end of 2013 even though the sale was not made until January 3, 2014. Describe Hubbs's ethical responsibilities in this matter if he is a CPA?

Accepted Answer

As a CPA, Tommy Hubbs has ethical respon

Question 12

With respect to whistleblowing, the Sarbanes-Oxley Act:

Accepted Answer

A)  Protects employees of publicly traded companies who provide evidence in fraud cases 
B)  Confers legal protection on managers who reported wrongdoing by top executives 
C)  Confers legal protection on the board of directors for fraudulent actions by management 
D)  All of these 
A)  Protects employees of publicly traded companies who provide evidence in fraud cases 
B)  Confers legal protection on managers who reported wrongdoing by top executives 
C)  Confers legal protection on the board of directors for fraudulent actions by management 
D)  All of these

Question 13

According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is:

Accepted Answer

A)  Internal audit 
B)  Management review 
C)  External audit 
D)  Tip 
A)  Internal audit 
B)  Management review 
C)  External audit 
D)  Tip

Question 14

In the Amgen case, former employees, Shawn O'Brien and Kassie Westmoreland, sued the company for:

Accepted Answer

A)  Wrongful termination 
B)  Fraudulent actions 
C)  Discrimination 
D)  Retaliation 
A)  Wrongful termination 
B)  Fraudulent actions 
C)  Discrimination 
D)  Retaliation

Question 15

One failure with respect to the internal controls at Tyco and Adelphia was:

Accepted Answer

A)  Falsification of bank statement balances 
B)  Top executives manipulated financial statement amounts 
C)  Top executives used hundreds of millions of dollars from interest-free loans for personal purposes 
D)  Top management engaged in a Ponzi scheme 
A)  Falsification of bank statement balances 
B)  Top executives manipulated financial statement amounts 
C)  Top executives used hundreds of millions of dollars from interest-free loans for personal purposes 
D)  Top management engaged in a Ponzi scheme

Question 16

What are the four pillars of corporate governance?

Accepted Answer

A)  Respect, accountability, fairness and transparency. 
B)  Responsibility, accountability, firmness and transparency. 
C)  Responsibility, accountability, fairness and transparency. 
D)  Respect, accountability, firmness and transparency. 
A)  Respect, accountability, fairness and transparency. 
B)  Responsibility, accountability, firmness and transparency. 
C)  Responsibility, accountability, fairness and transparency. 
D)  Respect, accountability, firmness and transparency.

Question 17

The most important values included in corporate values statements include:

Accepted Answer

A)  Pursuit of self-interests 
B)  Commitment to beating the competition 
C)  Diversity 
D)  Integrity and ethical behavior 
A)  Pursuit of self-interests 
B)  Commitment to beating the competition 
C)  Diversity 
D)  Integrity and ethical behavior

Question 18

A code of ethics for financial professionals is important under Sarbanes-Oxley because:

Accepted Answer

A)  It strengthens the relationship between financial professionals and shareholders 
B)  It supports the certification of financial statement requirement 
C)  It decreases the likelihood of whistleblowing 
D)  It enhances the ethics of the audit committee 
A)  It strengthens the relationship between financial professionals and shareholders 
B)  It supports the certification of financial statement requirement 
C)  It decreases the likelihood of whistleblowing 
D)  It enhances the ethics of the audit committee

Question 19

Agency costs refer to:

Accepted Answer

A)  The costs incurred in monitoring managerial performance 
B)  The costs incurred because there is information asymmetry between the corporation and outsiders 
C)  The costs incurred because insiders know more about a company than do outsiders 
D)  All of these 
A)  The costs incurred in monitoring managerial performance 
B)  The costs incurred because there is information asymmetry between the corporation and outsiders 
C)  The costs incurred because insiders know more about a company than do outsiders 
D)  All of these

Question 20

What are the fiduciary obligations of the board of directors?

Accepted Answer

A)  Maximize profits for the company and its shareholders 
B)  Give excessive executive compensation 
C)  Safeguard the organization's resources and interests of the company's stakeholders 
D)  Allow high risk accounting practices 
A)  Maximize profits for the company and its shareholders 
B)  Give excessive executive compensation 
C)  Safeguard the organization's resources and interests of the company's stakeholders 
D)  Allow high risk accounting practices

The case of Steve Jobs's Health deals with:

A strong and effective internal control environment can be enhanced by:

The Bennie and the Jets case deals with:

Which of the following is not used to overcome the agency problem?

Backdating of stock options is unethical because:

Under the Sarbanes-Oxley Act, which of the following bodies must contain members that are 100% independent of management?

In the Ethical Dissonance Model, a high person-organization fit requires:

One of the duties of a board of directors is to protect the interests of stakeholders. Which of the following is an example of protecting such interests?

With respect to whistleblowing, the Sarbanes-Oxley Act:

According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is:

In the Amgen case, former employees, Shawn O'Brien and Kassie Westmoreland, sued the company for:

One failure with respect to the internal controls at Tyco and Adelphia was:

What are the four pillars of corporate governance?

The most important values included in corporate values statements include:

A code of ethics for financial professionals is important under Sarbanes-Oxley because:

Agency costs refer to:

What are the fiduciary obligations of the board of directors?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Aicpa Code of Professional Conduct

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters

Exam 3: Creating an Ethical Organization Environment and Effective Corporate Governance Systems

The case of Steve Jobs's Health deals with:

A strong and effective internal control environment can be enhanced by:

The Bennie and the Jets case deals with:

Which of the following is not used to overcome the agency problem?

Backdating of stock options is unethical because:

Under the Sarbanes-Oxley Act, which of the following bodies must contain members that are 100% independent of management?

In the Ethical Dissonance Model, a high person-organization fit requires:

One of the duties of a board of directors is to protect the interests of stakeholders. Which of the following is an example of protecting such interests?

With respect to whistleblowing, the Sarbanes-Oxley Act:

According to the 2012 Global fraud Study of the ACFE, the most common method of initial detection of occupational fraud is:

In the Amgen case, former employees, Shawn O'Brien and Kassie Westmoreland, sued the company for:

One failure with respect to the internal controls at Tyco and Adelphia was:

What are the four pillars of corporate governance?

The most important values included in corporate values statements include:

A code of ethics for financial professionals is important under Sarbanes-Oxley because:

Agency costs refer to:

What are the fiduciary obligations of the board of directors?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Aicpa Code of Professional Conduct

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters