Question 1

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 B

Question 2

This organization has developed 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 E

Question 3

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 D,B

Question 4

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 5

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 6

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 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 are NOT hypernorms?

Accepted Answer

A) Honesty 
B) Credibility 
C) Fairness 
D) Integrity 
E) Predictability 
A) Honesty 
B) Credibility 
C) Fairness 
D) Integrity 
E) Predictability

Question 9

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

Question 10

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

Question 11

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 12

All of these are essential elements required to develop a culture of integrity EXCEPT:

Accepted Answer

A) Clear communication 
B) Reinforcement of ethics 
C) A personal commitment by senior management 
D) The appointment of an ethics officer 
E) All of the above 
A) Clear communication 
B) Reinforcement of ethics 
C) A personal commitment by senior management 
D) The appointment of an ethics officer 
E) All of the above

Question 13

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 14

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 15

Ethical investors in a corporation take the view that:

Accepted Answer

A) The corporation should maximize profits 
B) The corporation's primary concern should be its impact on the environment 
C) Their investment should make a reasonable return 
D) The corporation should operate in an ethical manner 
E) Both c and d 
A) The corporation should maximize profits 
B) The corporation's primary concern should be its impact on the environment 
C) Their investment should make a reasonable return 
D) The corporation should operate in an ethical manner 
E) Both c and d

Question 16

Which of these risks caused a 25% or more drop in share value between 1993 and 1998?

Accepted Answer

A) Strategic 
B) Operational 
C) Financial 
D) Hazard 
E) Ethics 
A) Strategic 
B) Operational 
C) Financial 
D) Hazard 
E) Ethics

Question 17

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

Question 18

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

Question 19

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 20

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

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

This organization has developed an international code of conduct for professional accountant:

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

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

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

Ethical corporate behavior is expected to lead to:

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

Which of the following are NOT hypernorms?

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

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

Not reporting environmental issues is an example of:

All of these are essential elements required to develop a culture of integrity EXCEPT:

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

Effective crisis management could represent:

Ethical investors in a corporation take the view that:

Which of these risks caused a 25% or more drop in share value between 1993 and 1998?

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

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

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

The following are examples of ethics risks faced by employees:

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

The Credibility Crisis - Enron, WorldCom & SOX

Filters

Exam 1: Ethics Expectations

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

This organization has developed an international code of conduct for professional accountant:

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

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

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

Ethical corporate behavior is expected to lead to:

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

Which of the following are NOT hypernorms?

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

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

Not reporting environmental issues is an example of:

All of these are essential elements required to develop a culture of integrity EXCEPT:

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

Effective crisis management could represent:

Ethical investors in a corporation take the view that:

Which of these risks caused a 25% or more drop in share value between 1993 and 1998?

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

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

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

The following are examples of ethics risks faced by employees:

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

The Credibility Crisis - Enron, WorldCom & SOX

Filters