Question 1

Which of the following is not a component of the Framework for Understanding Ethical Decision Making in Business?

Accepted Answer

A)  Ethical issue intensity 
B)  Individual and organizational factors 
C)  Internal controls 
D)  Business ethics intentions, behaviors, and evaluations 
A)  Ethical issue intensity 
B)  Individual and organizational factors 
C)  Internal controls 
D)  Business ethics intentions, behaviors, and evaluations

Question 2

Analyze the reaction of Toyota from an ethical perspective to disclosures that occurred in late 2009 and early 2010 that the accelerator in some brands might get stuck and result in unintended acceleration of the car. How does Toyota's reaction relate to that of Ford with the Pinto and Johnson & Johnson with the Tylenol poisoning?

Accepted Answer

A review of the Ford Pinto situation is

Question 3

The SEC has increased focus on identifying and penalizing misstatements in public company financials. What is one method that the SEC is using to identify companies, CEOs, and CFOs that are misstating financial statements?

Accepted Answer

A)  Utilizing the whistleblower provisions of the Dodd-Frank Act to provide a hot line. 
B)  Analyzing patterns of internal control problems even absent a restatement of the financials. 
C)  Analyzing whether the CFO has implemented adequate internal controls and safeguards over the financial reporting function. 
D)  Utilizing the company's ethics code to spot misstatements. 
A)  Utilizing the whistleblower provisions of the Dodd-Frank Act to provide a hot line. 
B)  Analyzing patterns of internal control problems even absent a restatement of the financials. 
C)  Analyzing whether the CFO has implemented adequate internal controls and safeguards over the financial reporting function. 
D)  Utilizing the company's ethics code to spot misstatements.

Question 4

Which of the following is least likely to be used by a manager to set the right tone to foster ethical leadership?

Accepted Answer

A)  Consider the implications of one's actions on themselves 
B)  Make decisions that do not harm others 
C)  Make decisions that are universal 
D)  Reflect before deciding 
A)  Consider the implications of one's actions on themselves 
B)  Make decisions that do not harm others 
C)  Make decisions that are universal 
D)  Reflect before deciding

Question 5

Research by Miceli and Near indicates that:

Accepted Answer

A)  Whistleblowers hope their speaking out achieves the correction of an organization wrongdoing 
B)  Whistleblowers hope those who violate the rules are prosecuted 
C)  Whistleblowers are motivated to report under Dodd-Frank to receive an award 
D)  Whistleblowers always blow the whistle because of altruistic reasons 
A)  Whistleblowers hope their speaking out achieves the correction of an organization wrongdoing 
B)  Whistleblowers hope those who violate the rules are prosecuted 
C)  Whistleblowers are motivated to report under Dodd-Frank to receive an award 
D)  Whistleblowers always blow the whistle because of altruistic reasons

Question 6

In the Parable of Sadhu case, Bowen T. McCoy's friend Stephen summed up the dilemma by saying:

Accepted Answer

A)  I feel that what happened with the sadhu is a good example of the breakdown between ethics in different cultures 
B)  I feel that what happened with the sadhu is a good example of the breakdown between the individual and corporate ethics 
C)  People tend to inevitably act in their own best interest 
D)  All of the above 
A)  I feel that what happened with the sadhu is a good example of the breakdown between ethics in different cultures 
B)  I feel that what happened with the sadhu is a good example of the breakdown between the individual and corporate ethics 
C)  People tend to inevitably act in their own best interest 
D)  All of the above

Question 7

According to the ACFE Global Fraud Study, which of the following was the most common behavioral indicator of fraud?

Accepted Answer

A)  Living beyond means 
B)  Financial difficulties 
C)  Addiction problems 
D)  Refusal to take vacations 
A)  Living beyond means 
B)  Financial difficulties 
C)  Addiction problems 
D)  Refusal to take vacations

Question 8

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)  Protects auditors who blow the whistle to the SEC 
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)  Protects auditors who blow the whistle to the SEC

Question 9

Jodie Fisher's allegations of sexual harassment are made believable due to Mark Hurd's:

Accepted Answer

A)  Conflict of interests 
B)  Misuse of company assets 
C)  Inaccurate expense reports 
D)  All of the above 
A)  Conflict of interests 
B)  Misuse of company assets 
C)  Inaccurate expense reports 
D)  All of the above

Question 10

The Ethical Dissonance Model helps to evaluate:

Accepted Answer

A)  Whether the organization sets an ethical tone at the top 
B)  Whether the organization has ethical leadership 
C)  Whether the organization has a whistle-blowing process 
D)  Whether the organization's ethics aligns with individual ethics 
A)  Whether the organization sets an ethical tone at the top 
B)  Whether the organization has ethical leadership 
C)  Whether the organization has a whistle-blowing process 
D)  Whether the organization's ethics aligns with individual ethics

Question 11

With respect to the importance of moral issues in business, Thomas Jones posited that:

Accepted Answer

A)  Moral issues of high intensity are more pronounced than those of low intensity 
B)  Moral issues of high intensity are subtler and difficult to evaluate 
C)  Moral issues of low intensity are more pronounced because they are difficult to identify 
D)  Moral issues of high and low intensity have equal effects on decision making 
A)  Moral issues of high intensity are more pronounced than those of low intensity 
B)  Moral issues of high intensity are subtler and difficult to evaluate 
C)  Moral issues of low intensity are more pronounced because they are difficult to identify 
D)  Moral issues of high and low intensity have equal effects on decision making

Question 12

The Full Disclosure: The Case of a Morally Challenged AP clerk involves the issue of:

Accepted Answer

A)  Embezzling money by processing fictitious invoices 
B)  Lowering the rate of rebates to increase operating income 
C)  Falsifying utility rates to decrease expenses 
D)  Lowering the rate of return on utility sales 
A)  Embezzling money by processing fictitious invoices 
B)  Lowering the rate of rebates to increase operating income 
C)  Falsifying utility rates to decrease expenses 
D)  Lowering the rate of return on utility sales

Question 13

The business judgment rule refers to:

Accepted Answer

A)  Faithfulness to one's obligations and duties 
B)  Honesty of purpose and caring 
C)  Decision making under uncertainty 
D)  Acting with due care and good faith 
A)  Faithfulness to one's obligations and duties 
B)  Honesty of purpose and caring 
C)  Decision making under uncertainty 
D)  Acting with due care and good faith

Question 14

Which of the following is not considered a behavioral indicator of fraud?

Accepted Answer

A)  Refusal to take vacations 
B)  Satisfaction with pay 
C)  Financial difficulties 
D)  An unwillingness to share duties 
A)  Refusal to take vacations 
B)  Satisfaction with pay 
C)  Financial difficulties 
D)  An unwillingness to share duties

Question 15

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers. What is the act's effect on whistleblowing by accountants?

Accepted Answer

A)  No accountant, internal or external, whether by job title or certification may receive a reward. 
B)  All accountants who whistle-blow are protected against retaliation, but may not receive a reward. 
C)  Internal auditors who whistle-blow may not receive a reward. 
D)  A CPA may report a violation of a public accounting firm's performance in an audit. 
A)  No accountant, internal or external, whether by job title or certification may receive a reward. 
B)  All accountants who whistle-blow are protected against retaliation, but may not receive a reward. 
C)  Internal auditors who whistle-blow may not receive a reward. 
D)  A CPA may report a violation of a public accounting firm's performance in an audit.

Question 16

Corporate governance structures and relationships are shaped by internal and external mechanisms. Which of the following is an external mechanism?

Accepted Answer

A)  State and federal statues require a baseline corporate governance system 
B)  Audit committees must consist of at least three members all of whom are independent of management and the entity 
C)  All directors must be independent of management 
D)  Each listed company must have an internal audit function 
A)  State and federal statues require a baseline corporate governance system 
B)  Audit committees must consist of at least three members all of whom are independent of management and the entity 
C)  All directors must be independent of management 
D)  Each listed company must have an internal audit function

Question 17

The Olympus case was unique from a corporate governance perspective because it deals with:

Accepted Answer

A)  A board of directors that was completely under the influence of the CEO 
B)  Cultural differences between Japanese management and western style of management 
C)  Cultural differences between U.S. and non-U.S. companies 
D)  A company that consistently overrides its internal controls and commits fraud 
A)  A board of directors that was completely under the influence of the CEO 
B)  Cultural differences between Japanese management and western style of management 
C)  Cultural differences between U.S. and non-U.S. companies 
D)  A company that consistently overrides its internal controls and commits fraud

Question 18

DeGeorge thinks that "corporations have a moral obligation not to harm." Which of the following would be one of his criteria for morally permitted whistleblowing?

Accepted Answer

A)  Documented evidence exists that would convince a reasonable and impartial observer that one's view of the situation is correct but that serious harm is unlikely to occur. 
B)  The employee must reasonably believe that going public will not create the necessary change to protect the public and is worth the risk to oneself. 
C)  The employee should report a firm's actions that will do serious and considerable harm to others to her supervisor, and keep reporting all the way up to board until the actions are corrected. 
D)  The employee must first report wrongdoing to the external auditor before going public. 
A)  Documented evidence exists that would convince a reasonable and impartial observer that one's view of the situation is correct but that serious harm is unlikely to occur. 
B)  The employee must reasonably believe that going public will not create the necessary change to protect the public and is worth the risk to oneself. 
C)  The employee should report a firm's actions that will do serious and considerable harm to others to her supervisor, and keep reporting all the way up to board until the actions are corrected. 
D)  The employee must first report wrongdoing to the external auditor before going public.

Question 19

Which of the following is NOT an ethical or legal responsibility of officers and directors?

Accepted Answer

A)  Duty of Care 
B)  Duty of Good Faith 
C)  Duty of Loyalty 
D)  Duty of Fair Pay 
A)  Duty of Care 
B)  Duty of Good Faith 
C)  Duty of Loyalty 
D)  Duty of Fair Pay

Question 20

Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?

Accepted Answer

A)  Confidence 
B)  Temperance 
C)  Reverence 
D)  Compassion 
A)  Confidence 
B)  Temperance 
C)  Reverence 
D)  Compassion

Which of the following is not a component of the Framework for Understanding Ethical Decision Making in Business?

The SEC has increased focus on identifying and penalizing misstatements in public company financials. What is one method that the SEC is using to identify companies, CEOs, and CFOs that are misstating financial statements?

Which of the following is least likely to be used by a manager to set the right tone to foster ethical leadership?

Research by Miceli and Near indicates that:

In the Parable of Sadhu case, Bowen T. McCoy's friend Stephen summed up the dilemma by saying:

According to the ACFE Global Fraud Study, which of the following was the most common behavioral indicator of fraud?

With respect to whistleblowing, the Sarbanes-Oxley Act:

Jodie Fisher's allegations of sexual harassment are made believable due to Mark Hurd's:

The Ethical Dissonance Model helps to evaluate:

With respect to the importance of moral issues in business, Thomas Jones posited that:

The Full Disclosure: The Case of a Morally Challenged AP clerk involves the issue of:

The business judgment rule refers to:

Which of the following is not considered a behavioral indicator of fraud?

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers. What is the act's effect on whistleblowing by accountants?

Corporate governance structures and relationships are shaped by internal and external mechanisms. Which of the following is an external mechanism?

The Olympus case was unique from a corporate governance perspective because it deals with:

DeGeorge thinks that "corporations have a moral obligation not to harm." Which of the following would be one of his criteria for morally permitted whistleblowing?

Which of the following is NOT an ethical or legal responsibility of officers and directors?

Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters

Exam 3: Organizational Ethics and Corporate Governance

Which of the following is not a component of the Framework for Understanding Ethical Decision Making in Business?

The SEC has increased focus on identifying and penalizing misstatements in public company financials. What is one method that the SEC is using to identify companies, CEOs, and CFOs that are misstating financial statements?

Which of the following is least likely to be used by a manager to set the right tone to foster ethical leadership?

Research by Miceli and Near indicates that:

In the Parable of Sadhu case, Bowen T. McCoy's friend Stephen summed up the dilemma by saying:

According to the ACFE Global Fraud Study, which of the following was the most common behavioral indicator of fraud?

With respect to whistleblowing, the Sarbanes-Oxley Act:

Jodie Fisher's allegations of sexual harassment are made believable due to Mark Hurd's:

The Ethical Dissonance Model helps to evaluate:

With respect to the importance of moral issues in business, Thomas Jones posited that:

The Full Disclosure: The Case of a Morally Challenged AP clerk involves the issue of:

The business judgment rule refers to:

Which of the following is not considered a behavioral indicator of fraud?

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers. What is the act's effect on whistleblowing by accountants?

Corporate governance structures and relationships are shaped by internal and external mechanisms. Which of the following is an external mechanism?

The Olympus case was unique from a corporate governance perspective because it deals with:

DeGeorge thinks that "corporations have a moral obligation not to harm." Which of the following would be one of his criteria for morally permitted whistleblowing?

Which of the following is NOT an ethical or legal responsibility of officers and directors?

Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters