Question 1

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)  values-based. 
C)  achievement-oriented. 
D)  stakeholder-based. 
E)  externally oriented. 
A)  compliance-based. 
B)  values-based. 
C)  achievement-oriented. 
D)  stakeholder-based. 
E)  externally oriented. B

Question 2

A company's internal auditors and its 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)  day-to-day to the CEO, and regularly to the Audit Committee of the Board of Directors without management being present. 
E)  day-to-day to both the CEO and the Audit Committee of the Board of Directors. 
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)  day-to-day to the CEO, and regularly to the Audit Committee of the Board of Directors without management being present. 
E)  day-to-day to both the CEO and the Audit Committee of the Board of Directors. D

Question 3

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 these are correct. 
A)  20%. 
B)  60%. 
C)  80%. 
D)  100%. 
E)  None of these are correct. B

Question 4

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

Question 5

The primary focus of an integrity-based ethics program is

Accepted Answer

A)  preventing, detecting and punishing violations of the law. 
B)  defining organizational values and encouraging employee commitment. 
C)  improving image and relationship with stakeholders. 
D)  protecting management from blame. 
E)  All of these are correct. 
A)  preventing, detecting and punishing violations of the law. 
B)  defining organizational values and encouraging employee commitment. 
C)  improving image and relationship with stakeholders. 
D)  protecting management from blame. 
E)  All of these are correct.

Question 6

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 7

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)  Principles are more useful than rules, and a blend of principles and rules is often optimal. 
E)  All of these are correct. 
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)  Principles are more useful than rules, and a blend of principles and rules is often optimal. 
E)  All of these are correct.

Question 8

Which of these is the preferred approach for dealing 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

Question 9

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)  legally to shareholders and all stakeholders. 
E)  legally to shareholders and strategically to additional stakeholders. 
A)  legally to shareholders. 
B)  legally to all stakeholders. 
C)  strategically to additional stakeholders. 
D)  legally to shareholders and all stakeholders. 
E)  legally to shareholders and strategically to additional stakeholders.

Question 10

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

Accepted Answer

A)  tone at the top. 
B)  an ethics officer and internal auditors. 
C)  a comprehensive ethical culture. 
D)  principles, rules and examples. 
E)  All of these are correct. 
A)  tone at the top. 
B)  an ethics officer and internal auditors. 
C)  a comprehensive ethical culture. 
D)  principles, rules and examples. 
E)  All of these are correct.

Question 11

Building trust within an organization can have favorable impact on employees' 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 these are correct. 
A)  ethical awareness. 
B)  ethical awakening. 
C)  ethical renewal. 
D)  ethical wave. 
E)  None of these are correct.

Question 12

The primary focus of a compliance-based ethics program is

Accepted Answer

A)  preventing, detecting and punishing violations of the law. 
B)  defining organizational values and encouraging employee commitment. 
C)  improving image and relationship with stakeholders. 
D)  protecting management from blame. 
E)  All of these are correct. 
A)  preventing, detecting and punishing violations of the law. 
B)  defining organizational values and encouraging employee commitment. 
C)  improving image and relationship with stakeholders. 
D)  protecting management from blame. 
E)  All of these are correct.

Question 13

Which 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 these are correct. 
A)  credo 
B)  code of ethics 
C)  code of conduct 
D)  code of practice 
E)  All of these are correct.

Question 14

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 judgment in P's behalf. 
B)  P has to exercise judgment in D's behalf. 
C)  D has a special interest that interferes with proper judgment. 
D)  D has to exercise judgment in P's behalf, and P has to exercise judgment in D's behalf. 
E)  D has to exercise judgment in P's behalf, and D has a special interest that interferes with proper judgment. 
A)  D has to exercise judgment in P's behalf. 
B)  P has to exercise judgment in D's behalf. 
C)  D has a special interest that interferes with proper judgment. 
D)  D has to exercise judgment in P's behalf, and P has to exercise judgment in D's behalf. 
E)  D has to exercise judgment in P's behalf, and D has a special interest that interferes with proper judgment.

Question 15

A Conference Board survey identified which of the following rationales 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 these are correct. 
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 these are correct.

Question 16

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

Question 17

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 18

SOX imposed which of 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 these are correct. 
A)  fines 
B)  suspension 
C)  criminal prosecution for executives 
D)  return of ill-gotten gains 
E)  All of these are correct.

Question 19

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 these are correct. 
A)  SOX-404 
B)  GRI 
C)  AA-1000 
D)  FTSE4Good 
E)  All of these are correct.

Question 20

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 judgment. 
B)  D may have to exercise judgment in P's behalf. 
C)  D has a special interest that interferes with proper judgment. 
D)  P has a special interest that interferes with proper judgment, and D may have to exercise judgment in P's behalf. 
E)  D may have to exercise judgment in P's behalf, and D has a special interest that interferes with proper judgment. 
A)  P has a special interest that interferes with proper judgment. 
B)  D may have to exercise judgment in P's behalf. 
C)  D has a special interest that interferes with proper judgment. 
D)  P has a special interest that interferes with proper judgment, and D may have to exercise judgment in P's behalf. 
E)  D may have to exercise judgment in P's behalf, and D has a special interest that interferes with proper judgment.

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

A company's internal auditors and its Ethics Officer should report

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 a mechanism for monitoring a code of ethics?

The primary focus of an integrity-based ethics program is

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

Which of the following is NOT true?

Which of these is the preferred approach for dealing with conflicts of interests?

Corporations are now increasingly realizing that they are accountable

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

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

The primary focus of a compliance-based ethics program is

Which code deals with ethics principles plus additional examples?

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

A Conference Board survey identified which of the following rationales for developing codes of ethics?

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

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

SOX imposed which of the following new penalties for executives?

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

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

Ethics Expectations.

Ethics & Governance Scandals

Philosophers’ Contributions.

Practical Ethical Decision Making.

Professional Accounting in the Public Interest

Managing Ethics Risks & Opportunities.

Subprime Lending Fiasco Ethics Issues.

Filters

Exam 5: Corporate Ethical Governance & Accountability.

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

A company's internal auditors and its Ethics Officer should report

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 a mechanism for monitoring a code of ethics?

The primary focus of an integrity-based ethics program is

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

Which of the following is NOT true?

Which of these is the preferred approach for dealing with conflicts of interests?

Corporations are now increasingly realizing that they are accountable

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

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

The primary focus of a compliance-based ethics program is

Which code deals with ethics principles plus additional examples?

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

A Conference Board survey identified which of the following rationales for developing codes of ethics?

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

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

SOX imposed which of the following new penalties for executives?

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

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

Ethics Expectations.

Ethics & Governance Scandals

Philosophers’ Contributions.

Practical Ethical Decision Making.

Professional Accounting in the Public Interest

Managing Ethics Risks & Opportunities.

Subprime Lending Fiasco Ethics Issues.

Filters