Question 1

In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages?

Accepted Answer

A) Stage 1 
B) Stage 2 
C) Stage 3 
D) Stage 4 
A) Stage 1 
B) Stage 2 
C) Stage 3 
D) Stage 4 C

Question 2

The need to exercise professional skepticism in auditing can be linked to:

Accepted Answer

A) Maintaining an attitude of independence in decision making 
B) Considering and responding to the risk of material misstatement in the financial statements due to fraud 
C) Considering and responding to pressures that might be imposed on auditors in decision making 
D) All of the above 
A) Maintaining an attitude of independence in decision making 
B) Considering and responding to the risk of material misstatement in the financial statements due to fraud 
C) Considering and responding to pressures that might be imposed on auditors in decision making 
D) All of the above B

Question 3

The ethical domain in accounting and auditing refers to:

Accepted Answer

A) The important constituent groups affected by accounting and auditing work 
B) The stages of the moral development of accountants and auditors 
C) The decision making process followed by accountants and auditors 
D) All of the above 
A) The important constituent groups affected by accounting and auditing work 
B) The stages of the moral development of accountants and auditors 
C) The decision making process followed by accountants and auditors 
D) All of the above A

Question 4

Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating:

Accepted Answer

A) Persistence, due care, and independence 
B) Persistence, due care and courage 
C) Independence, courage, and loyalty 
D) Persistence, due care, and loyalty 
A) Persistence, due care, and independence 
B) Persistence, due care and courage 
C) Independence, courage, and loyalty 
D) Persistence, due care, and loyalty

Question 5

Heinz stole the drug because:

Accepted Answer

A) He loved his wife 
B) He couldn't come up with all the money to pay for it 
C) He was afraid his wife would die without the drug 
D) All of the above 
A) He loved his wife 
B) He couldn't come up with all the money to pay for it 
C) He was afraid his wife would die without the drug 
D) All of the above

Question 6

In Cherron and Lowe's study of the link between professional skepticism and management accountants, the authors identified the importance of:

Accepted Answer

A) Understanding the motivation and integrity of evidence providers 
B) Understanding the nature of the corporate culture 
C) Understanding the way in which decisions are made 
D) All of the above 
A) Understanding the motivation and integrity of evidence providers 
B) Understanding the nature of the corporate culture 
C) Understanding the way in which decisions are made 
D) All of the above

Question 7

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

Accepted Answer

A) Satisfaction of one's needs 
B) Acting in the best interests of others 
C) Upholding the rights, values, and legal contracts of society 
D) Acting based on universal principles 
A) Satisfaction of one's needs 
B) Acting in the best interests of others 
C) Upholding the rights, values, and legal contracts of society 
D) Acting based on universal principles

Question 8

Explain each of the four components of Rest's Model of Morality.

Accepted Answer

Rest's Model of Morality consists of fou

Question 9

What are the implications of reasoning at stages 3 and 4?

Accepted Answer

A) A CPA unable to apply technical accounting standards is unlikely to be influenced by others. 
B) A CPA is unlikely to be influenced by rules or authority. 
C) A CPA is unlikely to be influenced or give into pressures. 
D) A CPA unable to apply technical accounting standards is likely to be influenced by others. 
A) A CPA unable to apply technical accounting standards is unlikely to be influenced by others. 
B) A CPA is unlikely to be influenced by rules or authority. 
C) A CPA is unlikely to be influenced or give into pressures. 
D) A CPA unable to apply technical accounting standards is likely to be influenced by others.

Question 10

The failure of Andersen's audit of Enron can be attributed to all of the following except for:

Accepted Answer

A) Failure to approach the audit with professional skepticism 
B) Lack of audit independence 
C) Failure to assign a sufficient number of staff to the audit 
D) Having a conflict of interests 
A) Failure to approach the audit with professional skepticism 
B) Lack of audit independence 
C) Failure to assign a sufficient number of staff to the audit 
D) Having a conflict of interests

Question 11

The Better Boston beans case emphasizes each of the following pillars of character except for:

Accepted Answer

A) Objectivity 
B) Responsibility 
C) Due care 
D) Empathy 
A) Objectivity 
B) Responsibility 
C) Due care 
D) Empathy

Question 12

Compare and contrast the steps taken by Sherron Watkins and Cynthia Cooper in bringing their concerns to top management.

Accepted Answer

Sherron Watkins and Cynthia Cooper both

Question 13

What needs to be coupled with moral motivation to act on moral judgment?

Accepted Answer

A) Courage 
B) External pressures 
C) Loyalty 
D) Internal pressures 
A) Courage 
B) External pressures 
C) Loyalty 
D) Internal pressures

Question 14

The "Milton Manufacturing" case illustrates:

Accepted Answer

A) What can go wrong when a company sets a policy that potentially harms one area of its operations 
B) How the failure to exercise professional skepticism can cloud objective judgment 
C) The pressure that can be placed on accountants by top management 
D) All of the above 
A) What can go wrong when a company sets a policy that potentially harms one area of its operations 
B) How the failure to exercise professional skepticism can cloud objective judgment 
C) The pressure that can be placed on accountants by top management 
D) All of the above

Question 15

As a professional working for a large electronics firm, Stan found himself riding a roller coaster of concern about lay-offs.Every few years, top management slashed jobs as work slacked off - only to hire again when things were looking up.So when Stan and his team members noticed that the executives were again meeting behind closed doors, they suspected the worst.
Stan's boss revealed to Stan that Stan's team member Jim was slated to lose his job.However, it was made plain that Stan was to keep that information confidential.
Not long after that conversation, Jim approached Stan and asked whether he could confirm the rumor that he would be laid off.
What should Stan do? With what values is Stan dealing? What are the consequences of Stan's choices?

Accepted Answer

Stan is facing choosing between loyalty

Question 16

Kevin Lowe's ethical dilemma in the "Eating Time" case can best be described as whether to:

Accepted Answer

A) Inform his supervisor about a lack of diligence of other staff accountants 
B) Date another staff member of the CPA firm 
C) Devote time on an audit and not charge it to the job 
D) Quit his job because he can't meet the firm's expected quality of work 
A) Inform his supervisor about a lack of diligence of other staff accountants 
B) Date another staff member of the CPA firm 
C) Devote time on an audit and not charge it to the job 
D) Quit his job because he can't meet the firm's expected quality of work

Question 17

In stage 1 of Kohlberg's model, ethical reasoning is motivated by:

Accepted Answer

A) Fear of punishment 
B) Satisfaction of one's needs 
C) Following the law 
D) Acting based on universal ethical principles 
A) Fear of punishment 
B) Satisfaction of one's needs 
C) Following the law 
D) Acting based on universal ethical principles

Question 18

An ethical tone at the top can best be described as:

Accepted Answer

A) Establishing an ethical culture within an organization 
B) Honesty exercised by top management 
C) Consistency in decision making 
D) Exercising professional skepticism when approaching an audit 
A) Establishing an ethical culture within an organization 
B) Honesty exercised by top management 
C) Consistency in decision making 
D) Exercising professional skepticism when approaching an audit

Question 19

Richard does his homework as soon as he gets home from school because of fear that his mother will not allow him to go outside.Which stage of Kohlberg's moral development is Richard?

Accepted Answer

A) Pre-conventional 
B) Post-conventional 
C) Conventional 
D) Unconventional 
A) Pre-conventional 
B) Post-conventional 
C) Conventional 
D) Unconventional

Question 20

Keesha is the CEO of a publicly-owned company.She was informed by the CFO that the company's earnings were down 30 percent from the prior year due to the recession.The company's stock price has declined by 20 percent.The CFO comes up with a scheme to hide debt and inflate revenues by selling underperforming assets to a special purpose entity affiliated with the company.Keesha is concerned about possible affects on the creditors but ultimately she agrees to the accounting.Keesha is reasoning at:

Accepted Answer

A) Stage 1 
B) Stage 2 
C) Stage 3 
D) Stage 4 
A) Stage 1 
B) Stage 2 
C) Stage 3 
D) Stage 4

In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages?

The need to exercise professional skepticism in auditing can be linked to:

The ethical domain in accounting and auditing refers to:

Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating:

Heinz stole the drug because:

In Cherron and Lowe's study of the link between professional skepticism and management accountants, the authors identified the importance of:

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

Explain each of the four components of Rest's Model of Morality.

What are the implications of reasoning at stages 3 and 4?

The failure of Andersen's audit of Enron can be attributed to all of the following except for:

The Better Boston beans case emphasizes each of the following pillars of character except for:

Compare and contrast the steps taken by Sherron Watkins and Cynthia Cooper in bringing their concerns to top management.

What needs to be coupled with moral motivation to act on moral judgment?

The "Milton Manufacturing" case illustrates:

Kevin Lowe's ethical dilemma in the "Eating Time" case can best be described as whether to:

In stage 1 of Kohlberg's model, ethical reasoning is motivated by:

An ethical tone at the top can best be described as:

Richard does his homework as soon as he gets home from school because of fear that his mother will not allow him to go outside.Which stage of Kohlberg's moral development is Richard?

Ethical Reasoning Implications for Accounting

Corporate Governance and Ethical Management

Aicpa Code of Professional Conduct

Audit Responsibilities and Accounting Fraud

Legal and Regulatory Obligations in an Ethical Framework

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

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Exam 2: Accountants Ethical Decision Process and Professional Judgment

In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages?

The need to exercise professional skepticism in auditing can be linked to:

The ethical domain in accounting and auditing refers to:

Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating:

Heinz stole the drug because:

In Cherron and Lowe's study of the link between professional skepticism and management accountants, the authors identified the importance of:

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

Explain each of the four components of Rest's Model of Morality.

What are the implications of reasoning at stages 3 and 4?

The failure of Andersen's audit of Enron can be attributed to all of the following except for:

The Better Boston beans case emphasizes each of the following pillars of character except for:

Compare and contrast the steps taken by Sherron Watkins and Cynthia Cooper in bringing their concerns to top management.

What needs to be coupled with moral motivation to act on moral judgment?

The "Milton Manufacturing" case illustrates:

Kevin Lowe's ethical dilemma in the "Eating Time" case can best be described as whether to:

In stage 1 of Kohlberg's model, ethical reasoning is motivated by:

An ethical tone at the top can best be described as:

Richard does his homework as soon as he gets home from school because of fear that his mother will not allow him to go outside.Which stage of Kohlberg's moral development is Richard?

Ethical Reasoning Implications for Accounting

Corporate Governance and Ethical Management

Aicpa Code of Professional Conduct

Audit Responsibilities and Accounting Fraud

Legal and Regulatory Obligations in an Ethical Framework

Earnings Management and the Quality of Financial Reporting

International Financial Reporting: Ethics and Corporate Governance Considerations

Filters