Question 1

Which of the following corporate adventures depended on a corporate culture of integrity?

Accepted Answer

A) Wells Fargo's unethical incentives 
B) Siemen's bribery scandal 
C) Merck and river blindness 
D) Enron's financial manipulations 
E) None of the above 
A) Wells Fargo's unethical incentives 
B) Siemen's bribery scandal 
C) Merck and river blindness 
D) Enron's financial manipulations 
E) None of the above C

Question 2

A company's internal auditors and the ethics officer should report:

Accepted Answer

A) on a day-to-day basis to the CEO. 
B) on a day-to-day basis 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) on a day-to-day basis to the CEO. 
B) on a day-to-day basis 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 D

Question 3

The 20/60/20 rule states that the total percentage 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 B

Question 4

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

Accepted Answer

A) prevent, detect, and punish 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) prevent, detect, and punish 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 5

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 6

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

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.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

A) the 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) the 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

Question 9

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 conduct 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 the 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 conduct 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 the expectations of stakeholders may not be met.

Question 10

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 11

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

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 12

This is the preferred approach to dealing with conflicts of interest.

Accepted Answer

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

Question 13

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 14

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

Accepted Answer

A) prevent, detect, and punish 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) prevent, detect, and punish 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

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 16

Which of the following is not true?

Accepted Answer

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

Question 17

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 18

Which of the following industries are corporate psychopaths likely to be attracted to?

Accepted Answer

A) Automotive 
B) Construction 
C) Real estate 
D) Transportation 
E) Investment banking 
A) Automotive 
B) Construction 
C) Real estate 
D) Transportation 
E) Investment banking

Question 19

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

Accepted Answer

A) shareholders' and stakeholders' goals. 
B) managers' and stakeholders' goals. 
C) shareholders' and managers' goals. 
D) principals' and shareholders' goals. 
E) agents' and stakeholders' goals. 
A) shareholders' and stakeholders' goals. 
B) managers' and stakeholders' goals. 
C) shareholders' and managers' goals. 
D) principals' and shareholders' goals. 
E) agents' and stakeholders' goals.

Question 20

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

Which of the following corporate adventures depended on a corporate culture of integrity?

A company's internal auditors and the ethics officer should report:

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

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

Corporations are now increasingly realizing that they are accountable:

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

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

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

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

SOX imposed the following new penalties for executives.

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

This is the preferred approach to dealing with conflicts of interest.

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

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

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

Which of the following is not true?

This code deals with ethics principles plus additional examples.

Which of the following industries are corporate psychopaths likely to be attracted to?

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

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

Ethics Expectations

Ethics Governance Scandals

Ethical Behaviorphilosophers Contributions

Practical Ethical Decision Making

Professional Accounting in the Public Interest

Managing Ethics Risks Opportunities

Subprime Lending Fiascoethics Issues

Filters

Exam 5: Corporate Ethical Governance Accountability

Which of the following corporate adventures depended on a corporate culture of integrity?

A company's internal auditors and the ethics officer should report:

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

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

Corporations are now increasingly realizing that they are accountable:

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

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

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

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

SOX imposed the following new penalties for executives.

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

This is the preferred approach to dealing with conflicts of interest.

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

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

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

Which of the following is not true?

This code deals with ethics principles plus additional examples.

Which of the following industries are corporate psychopaths likely to be attracted to?

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

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

Ethics Expectations

Ethics Governance Scandals

Ethical Behaviorphilosophers Contributions

Practical Ethical Decision Making

Professional Accounting in the Public Interest

Managing Ethics Risks Opportunities

Subprime Lending Fiascoethics Issues

Filters