Deck 29: Ethics in Accounting

Question 1

Teleological theories of ethics:

A) determine whether behaviour is ethical or unethical by observing the consequences of that behaviour
B) suggest that people behave with varying degrees of self-interest
C) are based on religious principles
D) can be all of the above

Answer 1

A

Question 2

Briefly describe the classes of teleological theories that have been used to examine ethical behaviour.

Answer 2

Not Answer

Question 3

Deontological theories of ethics:

A) are a special class of teleological theories
B) can also be described as descriptive theories
C) are based on duties and rights
D) can be all of the above

Answer 3

C

Question 4

Which of the following statements about the costs and benefits of unethical behaviour is not true?

A) The benefits of unethical behaviour are nearly always material
B) The costs of unethical behaviour are nearly always material
C) The penalties for unethical behaviour are not imposed in many cases
D) A cost of unethical behaviour may be the loss of freedom of choice in future decisions about whether to act ethically

Question 5

Should accountants act ethically? Explain the reasons for your answer to this question.

Question 6

The formal disciplinary proceedings of the major Australian professional accounting bodies are conducted 'in camera',which means:

A) details of the matters are never made public
B) details of the matters are not usually made public
C) the Disciplinary Committee is concerned only with breaches of the code of ethics
D) a member may not have a legal advisor present during the proceedings

Question 7

'Conscience-driven costs' of unethical behaviour include:

A) disciplinary proceedings by a relevant professional body
B) fear of eventual disclosure of the information
C) pressure to act unethically in the future
D) all of the above

Question 8

Professional codes of ethics can generally be classified into two types:

A) disciplinary codes and aspirational codes
B) quantitative and qualitative codes
C) legally enforceable codes and voluntary codes
D) moral codes and ethical codes

Question 9

Ethical parochialism:

A) assumes that ethical behaviour should protect the individuals belonging to the 'in group'
B) suggests that the behaviour of individuals should be constrained by the law and the conventions of fair play
C) is evidenced when individuals seek to maximise their own utility
D) suggests that ethical behaviour should be concerned with the good of all humankind and that individuals are all of equal value

Question 10

Which of the following is not included as a fundamental principle of professional conduct in the Code of Ethics for Professional Accountants?

A) Confidentiality
B) Accuracy
C) Independence
D) Objectivity

Question 11

The advantage of professions,such as accountants,having self-regulatory codes of ethics is:

A) they are likely to be more lenient than legal rules and regulations enforced by the courts
B) they can forestall action by government regulatory bodies such as the Australian Securities and Investments Commission
C) they are developed and imposed by professionals who understand the problems of practitioners
D) All of the above are advantages

Question 12

Normative ethical theories are:

A) derived from common law rules of behaviour
B) descriptions of how people actually behave
C) beliefs about how people should behave
D) beliefs about how people actually behave

Question 13

It is true that the principle of 'professional behaviour' in the Code of Ethics for Professional Accountants:

A) requires a member to avoid any action or omission that may bring discredit to the profession
B) is, in sense, a catch all provision that covers unethical behaviour not included elsewhere in the code
C) covers accountants behaviour outside their professional role
D) all of the above

Question 14

In research on ethical issues faced by accountants in Australia,it was found that the three most common ethical issues faced were:

A) overcharging, professional competence, conflicts of interest
B) confidentiality, honesty, admitting to mistakes
C) conflicts of interest, client proposals to manipulate financial statements and client proposals for tax evasion
D) using inside information for personal gain, client proposals for tax evasion, whistle blowing

Question 15

'Assessing the costs and benefits of ethical behaviour is subjective'.Discuss this statement by considering the costs and benefits of ethical and unethical behaviour of accountants.

Question 16

The Code of Ethics for Professional Accountants is best described as:

A) deontological in nature
B) voluntary for all members of the ICAA, CPA Australia and the NIA
C) descriptive in nature
D) teleological in nature

Question 17

Ethical egoism is based on a belief that people should act in a way that:

A) maximises the 'good' of the person making the decision
B) maximises the 'common good'
C) maximises good to the top stratum of the elite
D) conforms with the rules established by God

Question 18

Where a conflict of interest arises for an accountant so that safeguarding the interest of one client may cause harm to another client,it is generally accepted that rules of professional ethical conduct require that:

A) the accountant should not continue to advise both clients
B) the accountant should ensure that information about either client is not made available by anyone to the other client
C) the accountant should ensure that information about either client is not made available by anyone to the client who might be harmed by the information
D) the accountant should not continue to advise either client

Question 19

Briefly describe three classes of deontological theories that have been used to examine ethical behaviour.

Question 20

'Society-imposed costs' of unethical behaviour include:

A) destruction of professional reputation
B) penalties imposed through legal proceedings
C) penalties imposed by disciplinary proceedings by a relevant professional body
D) all of the above