Question 1

The school board has received a bomb threat claiming that a bomb would be detonated at noon on Monday at the high school.The threat was received by the school board at 8 pm on Sunday night.The school met and tried to decide how to handle the threat, keeping in mind the obligations to students, parents, and the public.The school board came up with three alternative solutions.
1) Do nothing as a majority of the time bomb threats to schools are a hoax.
2) Call off school at the high school on Monday.Have an announcement made on the 10 pm Sunday news announcing that a water main is broken.(Some members of the board feel that such an announcement of the breaking water main will prevent copycat threats.)
3) Call off school at the high school on Monday.Have an announcement made on the 10 pm Sunday news announcing that a bomb threat had been received.
Discuss which ethical theory supports each alternative.Which would you choose and why?

Accepted Answer

The essay was written to have no right answer: but rather for the student to display understanding of theories and critical thinking skills.
1) This may not require a theory.It is business as usual.Students may discuss the rights of students and parents for safety.
2) This is protecting the public and students' interest but is telling a lie to achieve this end.Thus students should mention Kant on the duty to not tell a lie and Utilitarianism on the least harm to all.Rights might also be mentioned as to whether the public, parents, and students have a right to know the truth.
3) This is protecting the public and students' interest and is telling the truth.Thus students should mention Kant on the duty to not tell a lie, utilitarianism on the least harm to all, and rights of the public, parents, and students have a right to know the truth.One consequence that students might consider is whether the public, parent, and students are better served when all know the truth (what if there are copycat threats).

Question 2

Greatest good for the greatest number of people is the theory of __________.

Accepted Answer

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

Question 3

An important modern contributor to the theory of justice is:

Accepted Answer

A)  Plato
B)  John Rawls
C)  Immanuel Kant
D)  Jeremy Bentham D

Question 4

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)  All of the above

Question 5

Utilitarian philosophers are divided into two types: act utilitarian and

Accepted Answer

A)  Rule utilitarian
B)  Individual utilitarian
C)  Ethical utilitarian
D)  Benefit utilitarian

Question 6

The method of ethical reasoning that evaluates actions in terms of harms and benefits is:

Accepted Answer

A)  Act Utilitarianism
B)  Rights Theory
C)  Justice
D)  Virtue

Question 7

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)  Don't be cruel until someone is cruel to you.

Question 8

Egoists maintain a general principle of the following sort:

Accepted Answer

A)  "One ought to always act in others' interest"
B)  "One ought always act in one's and others' interests"
C)  "One ought to always act in peer group's interest"
D)  "One ought to always act in one's own interest"

Question 9

The Rights Theory incorporates all of the following elements except for:

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)  All of the above

Question 10

The main issue in the Reneging on a Promise case is:

Accepted Answer

A)  Should the student who accepted an offer from one CPA firm back off from that promise in order to accept the offer of another firm deemed more preferable to the student.
B)  Should Regas back off from the dating relationship she developed with Giles
C)  Should the CPA firm renege on its offer of employment to a student after realizing it made one offer too many to student candidates for staff positions
D)  Should Tybell quit the firm because of conflicts with his superiors

Question 11

The method of ethical reasoning that deals with making decisions after considering the interests of others is:

Accepted Answer

A)  Egoism
B)  Enlightened Egoism
C)  Utilitarianism
D)  Rights Theory

Question 12

Virtue ethics is

Accepted Answer

A)  Doing what is right
B)  One's duty to act in a socially acceptable manner
C)  One's ability to meet or exceed their potential
D)  What one ought to do when presented with an ethical dilemma

Question 13

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

Accepted Answer

A)  The importance of integrity in decision making
B)  The primacy of stakeholder groups
C)  The need to be independent of the client
D)  The importance of exercising objectivity in decision making

Question 14

Deontology deals with

Accepted Answer

A)  Emphasizes rights of others
B)  Consequences of actions
C)  Following prescribed virtue characteristics
D)  Following the law as an element of ethical behavior

Question 15

The most important duty of public accounting is to the:

Accepted Answer

A)  Securities Exchange Commission
B)  Current stockholders
C)  Management
D)  Investing public

Question 16

Kant's categorical imperative principle suggests that:

Accepted Answer

A)  Only equals should be treated equally
B)  Everyone should be treated as a free and equal person
C)  Everyone should be treated unequally
D)  Only the elite are treated equally

Question 17

Aristotle believed that __________ always preceded the choice of action.

Accepted Answer

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

Question 18

Each of the following describes the behavior of Cynthia Cooper in the WorldCom fraud except for:

Accepted Answer

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

Question 19

Michael Josephson, founder of the Josephson Institute of Ethics, is credited for:

Accepted Answer

A)  Book of virtues
B)  Care and response orientation
C)  Six Pillars of Character
D)  Rights theory

Question 20

Each of the following characteristics describes the importance of integrity in decision making except for:

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

Exam 1: Ethical Reasoning Implications for Accounting