Question 1

The Moral Standards Approach focuses on the following dimensions of the impact of a proposed action:

Accepted Answer

A) Net benefit to society, fair to all stakeholders, whether it is right 
B) Net benefit to society and whether it is legal 
C) Net benefit to society, fair to all stakeholders, whether it is legal 
D) Fair to most stakeholders and whether it is right 
E) Net benefit to society, fair to most stakeholders, whether it is right 
A) Net benefit to society, fair to all stakeholders, whether it is right 
B) Net benefit to society and whether it is legal 
C) Net benefit to society, fair to all stakeholders, whether it is legal 
D) Fair to most stakeholders and whether it is right 
E) Net benefit to society, fair to most stakeholders, whether it is right A

Question 2

Professional Accountants, in their fiduciary role, owe their primary loyalty to:

Accepted Answer

A) The accounting profession 
B) The client 
C) The general public 
D) Government regulations 
E) All of the above 
A) The accounting profession 
B) The client 
C) The general public 
D) Government regulations 
E) All of the above C

Question 3

This philosophical approach requires that an ethical decision depends upon the duty, rights, and justice involved:

Accepted Answer

A) Consequentialism 
B) Virtue ethics 
C) Duty ethics 
D) Righteousness 
E) Deontology 
A) Consequentialism 
B) Virtue ethics 
C) Duty ethics 
D) Righteousness 
E) Deontology E

Question 4

Companies attempt to manage the risk of something happening that will have a negative or positive impact on the company's objectives, such as:

Accepted Answer

A) Credit risks 
B) Litigation risk 
C) Reputation risk 
D) Ethics risks 
E) All of the above 
A) Credit risks 
B) Litigation risk 
C) Reputation risk 
D) Ethics risks 
E) All of the above

Question 5

This organization is developing an international code of conduct for professional accountant:

Accepted Answer

A) International Accounting Standards Board 
B) European Federation of Accountants 
C) Financial Accounting Standards Board 
D) Public Accounting Oversight Board 
E) International Federation of Accountants 
A) International Accounting Standards Board 
B) European Federation of Accountants 
C) Financial Accounting Standards Board 
D) Public Accounting Oversight Board 
E) International Federation of Accountants

Question 6

Since the mid-1990s, both management and auditors have become increasingly:

Accepted Answer

A) Profit management oriented 
B) Ethics oriented 
C) Value management oriented 
D) Risk management oriented 
E) Marketing oriented 
A) Profit management oriented 
B) Ethics oriented 
C) Value management oriented 
D) Risk management oriented 
E) Marketing oriented

Question 7

A value that is almost universally respected by stakeholder groups is:

Accepted Answer

A) Super norm 
B) Alfa norm 
C) Value norm 
D) Hypernorm 
E) General norm 
A) Super norm 
B) Alfa norm 
C) Value norm 
D) Hypernorm 
E) General norm

Question 8

Which of the following is not a trend described in Chapter 1 as having an impact on the ethics of business?

Accepted Answer

A) Directors' legal liability 
B) Management's stated intention to protect reputation 
C) Auditors' legal liability 
D) Management's assertions to shareholders on the adequacy of internal controls 
E) Management's stated intention to manage risk 
A) Directors' legal liability 
B) Management's stated intention to protect reputation 
C) Auditors' legal liability 
D) Management's assertions to shareholders on the adequacy of internal controls 
E) Management's stated intention to manage risk

Question 9

Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts?

Accepted Answer

A) Corporate annual report 
B) Corporate social responsibility report 
C) Corporate quarterly report 
D) Corporate stakeholder report 
E) Corporate ethics committee report 
A) Corporate annual report 
B) Corporate social responsibility report 
C) Corporate quarterly report 
D) Corporate stakeholder report 
E) Corporate ethics committee report

Question 10

Most large corporations do not consider these risks in a broad and comprehensive way:

Accepted Answer

A) Operational risks 
B) Reputational risks 
C) Credit risks 
D) Market risks 
E) Ethics risks 
A) Operational risks 
B) Reputational risks 
C) Credit risks 
D) Market risks 
E) Ethics risks

Question 11

The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as:

Accepted Answer

A) Credibility gap 
B) Expectations gap 
C) Audit gap 
D) Stewardship gap 
E) None of the above 
A) Credibility gap 
B) Expectations gap 
C) Audit gap 
D) Stewardship gap 
E) None of the above

Question 12

The following would be a key control function of the Board of Directors:

Accepted Answer

A) Set guidance and boundaries 
B) Appoint CEO 
C) Approve the sale of company's assets 
D) Decide on the company's auditor 
E) All of the above 
A) Set guidance and boundaries 
B) Appoint CEO 
C) Approve the sale of company's assets 
D) Decide on the company's auditor 
E) All of the above

Question 13

The following are examples of ethics risks faced by employees:

Accepted Answer

A) Honesty and integrity 
B) Fairness and compassion 
C) Integrity and responsibility 
D) Fairness and integrity 
E) Responsibility and honesty 
A) Honesty and integrity 
B) Fairness and compassion 
C) Integrity and responsibility 
D) Fairness and integrity 
E) Responsibility and honesty

Question 14

Examining the interests of stakeholders is probably required for:

Accepted Answer

A) High short-term profits 
B) Optimal medium and longer-term profits 
C) Continuing support from stakeholder groups 
D) Effective risk management 
E) All of the above 
A) High short-term profits 
B) Optimal medium and longer-term profits 
C) Continuing support from stakeholder groups 
D) Effective risk management 
E) All of the above

Question 15

Effective crisis management could represent:

Accepted Answer

A) An opportunity to avoid costs 
B) An opportunity to change employee's perspectives on risk 
C) An opportunity to enhance the company's reputation 
D) All of the above 
E) None of the above 
A) An opportunity to avoid costs 
B) An opportunity to change employee's perspectives on risk 
C) An opportunity to enhance the company's reputation 
D) All of the above 
E) None of the above

Question 16

Ethical corporate behavior is expected to lead to:

Accepted Answer

A) Higher profitability in the short-term 
B) Higher profitability both in the short-term and long-term 
C) Lower profitability in the long-term 
D) Higher profitability in the long-term 
E) Lower profitability both in the short-term and long-term 
A) Higher profitability in the short-term 
B) Higher profitability both in the short-term and long-term 
C) Lower profitability in the long-term 
D) Higher profitability in the long-term 
E) Lower profitability both in the short-term and long-term

Question 17

The following are determinants of reputation:

Accepted Answer

A) Trustworthiness and Responsibility 
B) Credibility, Responsibility and Relevance 
C) Responsibility and Impartiality 
D) Relevance and Impartiality 
E) Relevance, Credibility and Responsibility 
A) Trustworthiness and Responsibility 
B) Credibility, Responsibility and Relevance 
C) Responsibility and Impartiality 
D) Relevance and Impartiality 
E) Relevance, Credibility and Responsibility

Question 18

Not reporting environmental issues is an example of:

Accepted Answer

A) Lack of transparency 
B) Lack of integrity 
C) Lack of accuracy 
D) All of the above 
E) None of the above 
A) Lack of transparency 
B) Lack of integrity 
C) Lack of accuracy 
D) All of the above 
E) None of the above

Question 19

Incomplete disclosure of the company's revenue recognition policy is an example of:

Accepted Answer

A) Lack of transparency 
B) Lack of integrity 
C) Lack of accuracy 
D) All of the above 
E) None of the above 
A) Lack of transparency 
B) Lack of integrity 
C) Lack of accuracy 
D) All of the above 
E) None of the above

Question 20

The following is a fundamental factor in having an effective ethical corporate culture:

Accepted Answer

A) Tone at the top 
B) Efficient oversight by the company's Board of Directors 
C) Workplace ethics 
D) Code of conduct 
E) Ethics risk management programs 
A) Tone at the top 
B) Efficient oversight by the company's Board of Directors 
C) Workplace ethics 
D) Code of conduct 
E) Ethics risk management programs

The Moral Standards Approach focuses on the following dimensions of the impact of a proposed action:

Professional Accountants, in their fiduciary role, owe their primary loyalty to:

This philosophical approach requires that an ethical decision depends upon the duty, rights, and justice involved:

Companies attempt to manage the risk of something happening that will have a negative or positive impact on the company's objectives, such as:

This organization is developing an international code of conduct for professional accountant:

Since the mid-1990s, both management and auditors have become increasingly:

A value that is almost universally respected by stakeholder groups is:

Which of the following is not a trend described in Chapter 1 as having an impact on the ethics of business?

Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts?

Most large corporations do not consider these risks in a broad and comprehensive way:

The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as:

The following would be a key control function of the Board of Directors:

The following are examples of ethics risks faced by employees:

Examining the interests of stakeholders is probably required for:

Effective crisis management could represent:

Ethical corporate behavior is expected to lead to:

The following are determinants of reputation:

Not reporting environmental issues is an example of:

Incomplete disclosure of the company's revenue recognition policy is an example of:

The following is a fundamental factor in having an effective ethical corporate culture:

Ethics & Governance Scandals

Ethical Behavior Philosophers’ Contributions

Practical Ethical Decision Making

Corporate Ethical Governance & Accountability

Professional Accounting in the Public Interest, Post Enron

Managing Ethics Risks & Opportunities

Subprime Lending Fiasco Ethics Issues

Enron Events Motivate Governance & Ethics Reform

Filters

Exam 1: The Ethics Environment

The Moral Standards Approach focuses on the following dimensions of the impact of a proposed action:

Professional Accountants, in their fiduciary role, owe their primary loyalty to:

This philosophical approach requires that an ethical decision depends upon the duty, rights, and justice involved:

Companies attempt to manage the risk of something happening that will have a negative or positive impact on the company's objectives, such as:

This organization is developing an international code of conduct for professional accountant:

Since the mid-1990s, both management and auditors have become increasingly:

A value that is almost universally respected by stakeholder groups is:

Which of the following is not a trend described in Chapter 1 as having an impact on the ethics of business?

Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts?

Most large corporations do not consider these risks in a broad and comprehensive way:

The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as:

The following would be a key control function of the Board of Directors:

The following are examples of ethics risks faced by employees:

Examining the interests of stakeholders is probably required for:

Effective crisis management could represent:

Ethical corporate behavior is expected to lead to:

The following are determinants of reputation:

Not reporting environmental issues is an example of:

Incomplete disclosure of the company's revenue recognition policy is an example of:

The following is a fundamental factor in having an effective ethical corporate culture:

Ethics & Governance Scandals

Ethical Behavior Philosophers’ Contributions

Practical Ethical Decision Making

Corporate Ethical Governance & Accountability

Professional Accounting in the Public Interest, Post Enron

Managing Ethics Risks & Opportunities

Subprime Lending Fiasco Ethics Issues

Enron Events Motivate Governance & Ethics Reform

Filters