Question 1

Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in the WorldCom fraud?

Accepted Answer

A)  Persistence 
B)  Competence 
C)  Integrity 
D)  Conformity

Question 2

Which of the following characteristics does NOT describe the importance of integrity in decision making?

Accepted Answer

A)  Acting out of moral principle 
B)  Being loyal to one's superior 
C)  Having the courage to do the right thing 
D)  Not subordinating professional judgment to others

Question 3

Virtue ethics emphasizes development of good habits of character. What should be the greatest reward of practicing good habits of character, according to MacIntyre?

Accepted Answer

A)  External rewards 
B)  Loyalty from others 
C)  Internal rewards 
D)  Authority of rules

Question 4

When making a donation at the local Goodwill, Martha tells the clerk that her old computer is in perfect working order when she knows it is not, just so she can deduct more on her taxes. Which theory best describes Martha's behavior?

Accepted Answer

A)  Utilitarianism 
B)  Deontology 
C)  Egoism 
D)  Justice

Question 5

What is the one virtue that people should want in a boss, to trust a boss?

Accepted Answer

A)  Diligence 
B)  Commitment 
C)  Honesty 
D)  Sense of humor

Question 6

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

Question 7

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.

Question 8

In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because:

Accepted Answer

A)  He wanted to improve earnings to increase the share price of company stock 
B)  The treatment recommended by the owner for estimating overhead conformed to GAAP 
C)  He was the sole owner of the company and controlled the board of directors 
D)  He got approval from the auditors

Question 9

Which of the following characteristics is NOT part of behaving with empathy?

Accepted Answer

A)  Being loyal to one's friends 
B)  Being understanding of one's friends 
C)  Being sensitive to the feelings of one's friends 
D)  Being caring about one's friends

Question 10

Susie, a newly graduated BBA in accounting, has started a new job with the state budgeting office. Susie has responsibility over expense reimbursements. The state has a travel policy stating that a state employee may be reimbursed up to $90 per night for a hotel room and up to $40 per day for meals, as long as the employee turns in food receipts. The first expense account Susie works on the employee who has a hotel receipt for $130 a night but no food expenses. Susie processes the reimbursement for $90. The employee becomes irate as his reading of the travel policy is that he can be reimbursed for $130 a night for hotel and food with a receipt. The employee claims this has never been a problem in the past and has always been reimbursed $130 a night whether for hotel only or both hotel and food.
What should Susie do and why? Use ethical reasoning to support your answer.

Accepted Answer

The answer of Susie, a newly graduated BBA in accounting,...

Question 11

The motive of "duty" is most associated with ________.

Accepted Answer

A)  Egoism 
B)  Deontology 
C)  Utilitarianism 
D)  Justice

Question 12

Which of the following elements does NOT make up an integral part of what is meant by "ethics"?

Accepted Answer

A)  Accepted standards of behavior 
B)  Knowing the difference between right and wrong 
C)  Always following the law 
D)  The moral point of view

Question 13

Which of following is false of active social networkers?

Accepted Answer

A)  They do not discuss company information online. 
B)  They witness more misconduct among their coworkers. 
C)  They experience more retaliation when they report their colleagues. 
D)  They think about risks before posting online.

Question 14

Why do ethicists consider integrity to be the foundation of ethical behavior?

Accepted Answer

The answer of Why do ethicists consider integrity to be...

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.

Question 16

Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked to slow down "You are exceeding the time budget for the audit and making the rest of us look bad," said one staff member. From an organizational, ethical point of view, the best thing for Jason to do is:

Accepted Answer

A)  Tell the other staff members that he will use the time he saves on his budget to help them to meet their budget by picking up their slack 
B)  Approach the supervisor to discuss the pressure of fellow staff to slow down on doing audit work 
C)  Explain to the other staff members that he works diligently and they should do the same 
D)  Tell the other staff members to mind their own business

Question 17

Utilitarian philosophers are divided into two types: act utilitarian and

Accepted Answer

A)  rule utilitarian. 
B)  egoistic utilitarian. 
C)  ethical utilitarian. 
D)  beneficial utilitarian.

Question 18

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.

Question 19

Hofstede's Cultural Dimensions helps explain how workers from different cultures might react in the workplace. The Long-Term Orientation dimension could help explain the different approaches toward:

Accepted Answer

A)  Dealing with uncertainty 
B)  Dealing with differences in power structure 
C)  Emphasizing short-term and long-term results 
D)  Emphasizing results over process

Question 20

Evaluate Lance Armstrong's behavior towards doping during the Tour de France from the perspective of the "Six Pillars of Character." How might Armstrong have handled the matter better?

Accepted Answer

The answer of Evaluate Lance Armstrong's behavior towards doping during...

Exam 1: Ethical Reasoning: Implications for Accounting