Deck 7: Managing Ethics Risks & Opportunities

Question 1

An employee in charge of the costumer service help line needs urgently some extra cash for paying his son's hospital bills.Using the fraud triangle, this situation likely constitutes:

A)Motive
B)Rationalization
C)Opportunity
D)aand b
E)aand c

Answer 1

A

Question 2

The following three performance indicators are recommended by the Global Reporting Initiative:

A)Economic, environmental and organizational
B)Environmental, financial and social
C)Economic, organizational and social
D)Environmental, financial and organizational
E)Cultural, environmental and social

Answer 2

B

Question 3

Which of the following is not a component of the COSO Enterprise Risk Framework?

A)Risk assessment
B)Risk review
C)Internal environment
D)Information and communication
E)Control activities

Answer 3

B

Question 4

An important difference between anticipated and unanticipated crises is that:

A)Unanticipated crises are easier to control than anticipated crises
B)Unanticipated crises have a less negative reputational impact than anticipated crises
C)Anticipated crises start much earlier than unanticipated crises
D)Anticipated crises are less costly than unanticipated crises
E)Anticipated crises have a longer uncontrolled period than unanticipated crises

Question 5

The following need is at the top of Maslow's Hierarchy of Needs:

A)Esteem
B)Respect
C)Fulfillment
D)Safety
E)Affinity

Question 6

An employee in charge of writing checks to suppliers in a manufacturing firm steals small sums of money every month by writing himself a check for the total of the discounts he negotiates with the company's suppliers.This type of rationalization is based on:

A)Denial of responsibility
B)Denial of the victim
C)Condemnation of the condemners
D)Everyone else is doing it
E)Entitlement

Question 7

Auditors are mandated to assess the client's risk of financial reporting fraud.Auditing standard SAS-99 considers the following a mandatory tool in fraud assessment:

A)Discussion and brainstorming
B)Fraud triangle
C)Interviews with management
D)Development of fraud training programs
E)All of the above

Question 8

Which of the following is a source of risk identified by both the AICPA/CICA and the Institute of Internal Auditors:

A)Environmental
B)Informational
C)Financial
D)Operational
E)All of the above

Question 9

An employee who thinks he is being treated unfairly because he is regularly working unpaid overtime urgently, needs some extra cash.Using the fraud triangle, this situation likely constitutes:

A)Motive
B)Rationalization
C)Opportunity
D)aand b
E)aand c

Question 10

What is the recommended strategy when stakeholders' potential for threat is HIGH and the stakeholders' potential for cooperation is HIGH?

A)Monitor
B)Involve
C)Discuss
D)Defend
E)None of the above

Question 11

An employee in charge of counting and depositing cash holdings at end of the day urgently needs some extra cash to pay her son's medical bills.Using the fraud triangle, this situation likely constitutes:

A)Motive
B)Rationalization
C)Opportunity
D)aand b
E)aand c

Question 12

Ethics and ethical corporate culture should likely play a vital role in setting:

A)Control environment
B)Risk assessment
C)Information and communication
D)Monitoring
E)Control activities

Question 13

What is the recommended strategy when stakeholders' potential for threat is LOW and the stakeholders' potential for cooperation is HIGH?

A)Monitor
B)Involve
C)Discuss
D)Defend
E)None of the above

Question 14

Which of the following is not a dimension of the COSO Enterprise Risk Framework?

A)Strategic
B)Monitoring
C)Operations
D)Reporting
E)Compliance

Question 15

The following performance component recommended by the Global Reporting Initiative relates to customer health and safety, marketing communications and customer privacy:

A)Labour practices
B)Human rights
C)Product responsibility
D)Society
E)Costumer rights

Question 16

Most of the damage is usually done in this phase of a crisis:

A)Pre-crisis
B)Reputation restoration
C)Controlled
D)Uncontrolled
E)Post-crisis

Question 17

Which the following best describes harassment?

A)Improper behaviour considered offensive by the victim, and the perpetrator knows that this is an offensive behaviour
B)Improper behaviour considered offensive by society in general, and the perpetrator knows that this is an offensive behaviour
C)Improper behaviour not considered offensive by the victim, and the perpetrator knows that this is an offensive behaviour
D)Improper behaviour considered offensive by the victim, and the perpetrator does not know that this is an offensive behaviour
E)Improper behaviour considered not offensive by the victim, and the perpetrator does not know that this is an offensive behaviour

Question 18

An employee in charge of the cash register at a busy restaurant steals small sums of money at the end of the day whenever the cash in the register exceeds the sum of the day's bills.He thinks it is fine to do so because every day there are two or three costumers that pay more than they should.This type of rationalization is based on:

A)Everyone else is doing it
B)Denial of the victim
C)Condemnation of the condemners
D)Appeal to higher loyalties
E)Entitlement

Question 19

Which of the following would be the least useful report of ethics risks and opportunities?

A)By hypernorm value
B)By shareholder group
C)By product or service
D)By corporate objective
E)By reputation driver

Question 20

An employee in charge of collecting tickets at the entrance of a movie theatre lets her friends enter the theatre without paying for tickets.She thinks it is fine to do so because the employees at the popcorn bar give free popcorn to their friends.This type of rationalization is because:

A)Denial of responsibility
B)Denial of the victim
C)Everyone else is doing it
D)Appeal to higher loyalties
E)Entitlement