Question 1

This is the preferred approach to deal with conflicts of interests

Accepted Answer

A) Management 
B) Disclosure 
C) Remediation 
D) Avoidance 
E) Awareness 
A) Management 
B) Disclosure 
C) Remediation 
D) Avoidance 
E) Awareness D

Question 2

Which of the following is not a characteristic identified by forensic experts in prospective fraud situations?

Accepted Answer

A) High intelligence 
B) Greed 
C) Need for whatever is taken 
D) Opportunity to take advantage 
E) Low probability of being caught 
A) High intelligence 
B) Greed 
C) Need for whatever is taken 
D) Opportunity to take advantage 
E) Low probability of being caught A

Question 3

Experience has revealed that, to be effective, a code must be reinforced by:

Accepted Answer

A) Tone at the top 
B) Ethics officer and internal auditors 
C) A comprehensive ethical culture 
D) Principles, rules and examples 
E) All of the above 
A) Tone at the top 
B) Ethics officer and internal auditors 
C) A comprehensive ethical culture 
D) Principles, rules and examples 
E) All of the above E

Question 4

A Conference Board survey identified the following rationale for developing codes of ethics:

Accepted Answer

A) Make employees aware that adherence is critical to bottom-line success 
B) Provide a statement of do's and don'ts 
C) Discuss what is expected in stakeholder relationships 
D) Establish values and mission 
E) All of the above 
A) Make employees aware that adherence is critical to bottom-line success 
B) Provide a statement of do's and don'ts 
C) Discuss what is expected in stakeholder relationships 
D) Establish values and mission 
E) All of the above

Question 5

The primary focus of a compliance-based ethics program is:

Accepted Answer

A) Preventing, detecting and punishing violations of the law 
B) Define organizational values and encourage employee commitment 
C) Improve image and relationship with stakeholders 
D) Protect management from blame 
E) All of the above 
A) Preventing, detecting and punishing violations of the law 
B) Define organizational values and encourage employee commitment 
C) Improve image and relationship with stakeholders 
D) Protect management from blame 
E) All of the above

Question 6

The 20/60/20 rule states that the total percent of employees who could commit a fraudulent act is:

Accepted Answer

A) 20% 
B) 60% 
C) 80% 
D) 100% 
E) None of the above 
A) 20% 
B) 60% 
C) 80% 
D) 100% 
E) None of the above

Question 7

Which of the following is NOT an example of emerging public accountability standards or initiatives?

Accepted Answer

A) SOX-404 
B) GRI 
C) AA-1000 
D) FTSE4Good 
E) All of the above are examples 
A) SOX-404 
B) GRI 
C) AA-1000 
D) FTSE4Good 
E) All of the above are examples

Question 8

SOX imposed the following new penalties for executives:

Accepted Answer

A) Fines 
B) Suspension 
C) Criminal prosecution for executives 
D) Return of ill-gotten gains 
E) All of the above 
A) Fines 
B) Suspension 
C) Criminal prosecution for executives 
D) Return of ill-gotten gains 
E) All of the above

Question 9

A potential conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

Accepted Answer

A) P has a special interest that interferes with proper judgement 
B) D may have to exercise judgement in P's behalf 
C) D has a special interest that interferes with proper judgement 
D) (a)and (b) 
E) (b)and (c) 
A) P has a special interest that interferes with proper judgement 
B) D may have to exercise judgement in P's behalf 
C) D has a special interest that interferes with proper judgement 
D) (a)and (b) 
E) (b)and (c)

Question 10

This code deals with ethics principles plus additional examples:

Accepted Answer

A) Credo 
B) Code of ethics 
C) Code of conduct 
D) Code of practice 
E) All of the above 
A) Credo 
B) Code of ethics 
C) Code of conduct 
D) Code of practice 
E) All of the above

Question 11

Which of the following is not an ethics risk management principle?

Accepted Answer

A) Normal definitions of risk are too narrow for stakeholder accountability 
B) Assign responsibility, develop follow-up processes and board review 
C) Discovery and remediation are essential 
D) The code of ethics must be reviewed by independent parties 
E) An ethics risk exists when expectations of stakeholders may not be met 
A) Normal definitions of risk are too narrow for stakeholder accountability 
B) Assign responsibility, develop follow-up processes and board review 
C) Discovery and remediation are essential 
D) The code of ethics must be reviewed by independent parties 
E) An ethics risk exists when expectations of stakeholders may not be met

Question 12

A conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

Accepted Answer

A) D has to exercise judgement on P's behalf 
B) P has to exercise judgement on D's behalf 
C) D has a special interest that interferes with proper judgement 
D) (a)and (b) 
E) (a)and (c) 
A) D has to exercise judgement on P's behalf 
B) P has to exercise judgement on D's behalf 
C) D has a special interest that interferes with proper judgement 
D) (a)and (b) 
E) (a)and (c)

Question 13

Which of the following is not true?

Accepted Answer

A) Principles are more useful than rules because principles can be interpreted as new circumstances require 
B) Rules are more useful than principles because rules can be interpreted as new circumstances require 
C) A blend of principles and rules is often optimal 
D) All of the above 
E) (a)and (c)only 
A) Principles are more useful than rules because principles can be interpreted as new circumstances require 
B) Rules are more useful than principles because rules can be interpreted as new circumstances require 
C) A blend of principles and rules is often optimal 
D) All of the above 
E) (a)and (c)only

Question 14

The primary focus of an integrity-based ethics program is:

Accepted Answer

A) Preventing, detecting and punishing violations of the law 
B) Define organizational values and encourage employee commitment 
C) Improve image and relationship with stakeholders 
D) Protect management from blame 
E) All of the above 
A) Preventing, detecting and punishing violations of the law 
B) Define organizational values and encourage employee commitment 
C) Improve image and relationship with stakeholders 
D) Protect management from blame 
E) All of the above

Question 15

A fundamental problem examined by agency theory is how it is possible to align:

Accepted Answer

A) Shareholders' and stakeholders' goals 
B) Manager's and stakeholders' goals 
C) Shareholders' and managers' goals 
D) Principal's and shareholders' goals 
E) Agent's and stakeholders' goals 
A) Shareholders' and stakeholders' goals 
B) Manager's and stakeholders' goals 
C) Shareholders' and managers' goals 
D) Principal's and shareholders' goals 
E) Agent's and stakeholders' goals

Question 16

Corporations are now increasingly realizing that they are accountable:

Accepted Answer

A) Legally to shareholders 
B) Legally to all stakeholders 
C) Strategically to additional stakeholders 
D) (a)and (b) 
E) (a)and (c) 
A) Legally to shareholders 
B) Legally to all stakeholders 
C) Strategically to additional stakeholders 
D) (a)and (b) 
E) (a)and (c)

Question 17

Building trust within an organization can have favorable impact on an employee's willingness to share information and ideas in a process of:

Accepted Answer

A) Ethical awareness 
B) Ethical awakening 
C) Ethical renewal 
D) Ethical wave 
E) None of the above 
A) Ethical awareness 
B) Ethical awakening 
C) Ethical renewal 
D) Ethical wave 
E) None of the above

Question 18

The most important factor in encouraging employee observance to an ethics program is that employees perceive that it is:

Accepted Answer

A) Compliance-based 
B) Value-based 
C) Achievement oriented 
D) Stakeholder-based 
E) Externally oriented 
A) Compliance-based 
B) Value-based 
C) Achievement oriented 
D) Stakeholder-based 
E) Externally oriented

Question 19

The company's internal auditors and the Ethics Officer should report:

Accepted Answer

A) Day-to-day to the CEO 
B) Day-to-day to the Audit Committee of the Board of Directors 
C) Regularly to the Audit Committee of the Board of Directors without management being present 
D) (a)and (c) 
E) (a)and (b) 
A) Day-to-day to the CEO 
B) Day-to-day to the Audit Committee of the Board of Directors 
C) Regularly to the Audit Committee of the Board of Directors without management being present 
D) (a)and (c) 
E) (a)and (b)

Question 20

Which of the following is NOT a mechanism for monitoring a code of ethics?

Accepted Answer

A) Ethics audit or internal audit procedures 
B) Reviews by legal department 
C) Awards and bonuses 
D) Annual sign-off by employees 
E) Employee surveys 
A) Ethics audit or internal audit procedures 
B) Reviews by legal department 
C) Awards and bonuses 
D) Annual sign-off by employees 
E) Employee surveys

This is the preferred approach to deal with conflicts of interests

Which of the following is not a characteristic identified by forensic experts in prospective fraud situations?

Experience has revealed that, to be effective, a code must be reinforced by:

A Conference Board survey identified the following rationale for developing codes of ethics:

The primary focus of a compliance-based ethics program is:

The 20/60/20 rule states that the total percent of employees who could commit a fraudulent act is:

Which of the following is NOT an example of emerging public accountability standards or initiatives?

SOX imposed the following new penalties for executives:

A potential conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

This code deals with ethics principles plus additional examples:

Which of the following is not an ethics risk management principle?

A conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

Which of the following is not true?

The primary focus of an integrity-based ethics program is:

A fundamental problem examined by agency theory is how it is possible to align:

Corporations are now increasingly realizing that they are accountable:

Building trust within an organization can have favorable impact on an employee's willingness to share information and ideas in a process of:

The most important factor in encouraging employee observance to an ethics program is that employees perceive that it is:

The company's internal auditors and the Ethics Officer should report:

Which of the following is NOT a mechanism for monitoring a code of ethics?

Ethics Expectations

Ethics & Governance Scandals

Ethical Behavior Philosophers’ Contributions

Practical Ethical Decision Making

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 5: Corporate Ethical Governance & Accountability

This is the preferred approach to deal with conflicts of interests

Which of the following is not a characteristic identified by forensic experts in prospective fraud situations?

Experience has revealed that, to be effective, a code must be reinforced by:

A Conference Board survey identified the following rationale for developing codes of ethics:

The primary focus of a compliance-based ethics program is:

The 20/60/20 rule states that the total percent of employees who could commit a fraudulent act is:

Which of the following is NOT an example of emerging public accountability standards or initiatives?

SOX imposed the following new penalties for executives:

A potential conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

This code deals with ethics principles plus additional examples:

Which of the following is not an ethics risk management principle?

A conflict of interest exists when a given decision maker (D)and another person (P)are in the following situation:

Which of the following is not true?

The primary focus of an integrity-based ethics program is:

A fundamental problem examined by agency theory is how it is possible to align:

Corporations are now increasingly realizing that they are accountable:

Building trust within an organization can have favorable impact on an employee's willingness to share information and ideas in a process of:

The most important factor in encouraging employee observance to an ethics program is that employees perceive that it is:

The company's internal auditors and the Ethics Officer should report:

Which of the following is NOT a mechanism for monitoring a code of ethics?

Ethics Expectations

Ethics & Governance Scandals

Ethical Behavior Philosophers’ Contributions

Practical Ethical Decision Making

Professional Accounting in the Public Interest, Post Enron

Managing Ethics Risks & Opportunities

Subprime Lending Fiasco – Ethics Issues

The Credibility Crisis - Enron, WorldCom & SOX

Filters