Exam 2: Accountants Ethical Decision Process and Professional Judgment

Role expectation or approval from others is a motive for doing right is which state of Kohlberg's moral reasoning?

Each of the following considerations should help to evaluate alternative courses of action in the decision making model except for:

Steve is in charge of accounting for the purchase of equipment at Cal Works, Inc.The company has a policy that all expenditures greater than $1,000 must be capitalized.Steve is under pressure from his supervisor to minimize capital expenditures less than $1,000 to keep earnings as high as possible.Steve decides to take two separate expenditures - one for $600 and the other for $900 - and he groups them into one expenditure so that the capitalization rules apply.Steve's actions can be characterized as:

The importance of framing the ethical issue in the decision making model is:

In the DigitPrint case, at which stage does Wally Wonderful reason if he insists on compliance with GAAP?

Leroy audits the financial statements of a small business.During the course of his audit he notices that all five members of top management have purchased new BMWs.Given that each manager's salary is less than $100,000 per year, Leroy becomes suspicious about how all five of them were able to buy such an expensive automobile.He decides to double check the bank statements for the year and postings to expense accounts that might indicate improper expenditures.Leroy's actions demonstrate:

Professional judgment in accounting includes each of the following attributes except for:

In the Phar-Mor case, Pat Finn's actions reflect ethical reasoning at what stage?

What is the ethical dilemma in Supreme Designs?

The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for:

Why is it important for management accountants to adopt an attitude of professional skepticism?

How does Gilligan evaluate the solution to Heinz's dilemma?

Individuals who reason at stage 6 incorporate ethical reasoning based on:

The ethical decision making model described in the chapter helps to:

The cognitive development approach refers to:

Rosie is the external auditor of Texas Two Steps, a privately-owned dance company in Texas.Rosie believes the owner of the company is skimming cash off the top.She approaches the owner who explains that the money will be replaced in the following month after he refinances his house.Rosie accepts the owner's explanation but reclassifies the expenditure as a receivable of the company from Rosie.Rosie's reasoning best reflects:

Professional skepticism means:

The main accounting issue in the Juggyfroot case is:

In the development of a scale to measure professional skepticism, Hurtt, Eining and Plumlee identified the following three characteristics of skepticism that deal with examining evidence:

Kohlberg's model can best be described as: