Question 1

Accountants may hesitate to record a questionable entry if they know:

Accepted Answer

A) Internal audit is likely to detect the possible error 
B) Internal audit is likely to detect the inappropriate financial reporting practices 
C) Internal audit is likely to communicate it to the external auditors 
D) Internal audit is likely to blow the whistle on inappropriate financial reporting practices 
A) Internal audit is likely to detect the possible error 
B) Internal audit is likely to detect the inappropriate financial reporting practices 
C) Internal audit is likely to communicate it to the external auditors 
D) Internal audit is likely to blow the whistle on inappropriate financial reporting practices B

Question 2

In Brennan and Kelly's study of the factors that influence propensity or willingness to blow the whistle among audit trainees,the authors identified each of the following factors except:

Accepted Answer

A) Audit firm organizational structures 
B) Audit firm ethical leadership 
C) Personal characteristics of whistleblowers 
D) Situational variables 
A) Audit firm organizational structures 
B) Audit firm ethical leadership 
C) Personal characteristics of whistleblowers 
D) Situational variables B

Question 3

De Cremer and Tenbrunsel characterize ethical leadership in part as:

Accepted Answer

A) Intention to demonstrate normatively appropriate conduct 
B) Environment that promotes transformational leadership 
C) Influencing followers to always adhere to leaders' goals for the organization 
D) Environment that promotes servant leadership 
A) Intention to demonstrate normatively appropriate conduct 
B) Environment that promotes transformational leadership 
C) Influencing followers to always adhere to leaders' goals for the organization 
D) Environment that promotes servant leadership A

Question 4

The results of Morris' study of the influence of authentic leadership and ethical firm culture on auditor behavior is:

Accepted Answer

A) A significant positive correlation exists between authentic leadership and dysfunctional audit behaviors 
B) A significant negative correlation exists between authentic leadership and dysfunctional audit behaviors 
C) Audit seniors more frequently prematurely sign off on audit work than under-report time 
D) Audit seniors act on their own values regardless of their perceptions of the firm culture 
A) A significant positive correlation exists between authentic leadership and dysfunctional audit behaviors 
B) A significant negative correlation exists between authentic leadership and dysfunctional audit behaviors 
C) Audit seniors more frequently prematurely sign off on audit work than under-report time 
D) Audit seniors act on their own values regardless of their perceptions of the firm culture

Question 5

Bobek et al.found a disconnect between tax partners and nonpartner tax practitioners with respect to:

Accepted Answer

A) Perceptions of ethical leadership when they described a self-identified ethical dilemma 
B) Perceptions of ethical leadership when there was a difference of opinion on a tax matter 
C) Perceptions of organizational ethics when they described a self-identified ethical dilemma 
D) Perceptions of organizational ethics when there was a difference of opinion on a tax matter 
A) Perceptions of ethical leadership when they described a self-identified ethical dilemma 
B) Perceptions of ethical leadership when there was a difference of opinion on a tax matter 
C) Perceptions of organizational ethics when they described a self-identified ethical dilemma 
D) Perceptions of organizational ethics when there was a difference of opinion on a tax matter

Question 6

Ethical leadership competence refers to:

Accepted Answer

A) Leaders ability to deal with moral problems in an autonomous way 
B) Leaders ability to deal with moral problems in an automatic way 
C) Leaders ability to set the tone of the organization as an ethical one 
D) Leaders ability to develop problem solving and decision-making skills 
A) Leaders ability to deal with moral problems in an autonomous way 
B) Leaders ability to deal with moral problems in an automatic way 
C) Leaders ability to set the tone of the organization as an ethical one 
D) Leaders ability to develop problem solving and decision-making skills

Question 7

Discuss the role of ethical leadership behavior in public accounting firms and how ethical leadership influences the internal communication and employee outcomes in the organization.

Accepted Answer

Ethical leader behaviors help establish

Question 8

Social Learning Theory holds that:

Accepted Answer

A) Employees learn what to do by observing their leaders' behavior and its consequences 
B) Employees learn what not to do by observing their leaders' behavior and its consequences 
C) Employees learn what to do and what not to do by observing their leaders' behavior and its consequences 
D) Employees learn what to do and what not to do when antisocial behaviors exist 
A) Employees learn what to do by observing their leaders' behavior and its consequences 
B) Employees learn what not to do by observing their leaders' behavior and its consequences 
C) Employees learn what to do and what not to do by observing their leaders' behavior and its consequences 
D) Employees learn what to do and what not to do when antisocial behaviors exist

Question 9

Followership,servant leaders,and authenticity all share the following common characteristic:

Accepted Answer

A) Values-based leadership 
B) Sensitivity to ethical dilemmas 
C) Adherence to organizational norms even if it means compromising one's values 
D) Leader ethicality 
A) Values-based leadership 
B) Sensitivity to ethical dilemmas 
C) Adherence to organizational norms even if it means compromising one's values 
D) Leader ethicality

Question 10

The Giving Voice to Values framework distinguishes between organizational and individual values because:

Accepted Answer

A) Organizational values are internal to each individual while individual values are highly visible within the organization 
B) Organizational values are highly visible within the organization while individual values are internal to the very core of individuals 
C) Organizational values are influenced by ethical leadership while individual values are influenced by perceptions of organizational values 
D) Organizational values create perceptions of ethical leadership while individual values are innate to the individual 
A) Organizational values are internal to each individual while individual values are highly visible within the organization 
B) Organizational values are highly visible within the organization while individual values are internal to the very core of individuals 
C) Organizational values are influenced by ethical leadership while individual values are influenced by perceptions of organizational values 
D) Organizational values create perceptions of ethical leadership while individual values are innate to the individual

Question 11

An important factor in evaluating moral intensity is:

Accepted Answer

A) Temporal immediacy of the effect of the moral act 
B) Consequences of proximity of the moral agent and ethical leadership 
C) Influence of moral judgment on moral intensity 
D) All of the above are relevant factors 
A) Temporal immediacy of the effect of the moral act 
B) Consequences of proximity of the moral agent and ethical leadership 
C) Influence of moral judgment on moral intensity 
D) All of the above are relevant factors

Question 12

Selection-socialization bias in audit firms pertains to:

Accepted Answer

A) Whether a firm hires and promotes individuals who fit into the prevailing firm culture and whether individuals unable to fit leave 
B) Whether a firm fires individuals who do not fit into the prevailing firm culture 
C) Whether individuals choose to work for a particular firm 
D) Effective leadership and followership 
A) Whether a firm hires and promotes individuals who fit into the prevailing firm culture and whether individuals unable to fit leave 
B) Whether a firm fires individuals who do not fit into the prevailing firm culture 
C) Whether individuals choose to work for a particular firm 
D) Effective leadership and followership

Question 13

Taylor and Curtis studied the complex relationships in accounting firms that influence an individual's decision to report an ethical violation and found at the center of these potentially conflicting layers of commitment lies:

Accepted Answer

A) Auditor perceived professional identity 
B) Ethical leadership 
C) Seriousness of the violation 
D) The ethical violation itself and the individual's personal reaction to it 
A) Auditor perceived professional identity 
B) Ethical leadership 
C) Seriousness of the violation 
D) The ethical violation itself and the individual's personal reaction to it

Question 14

The ethical environment within an accounting firm is created through adherence to the:

Accepted Answer

A) AICPA Code of Professional Conduct 
B) Rules and regulations of the SEC 
C) Stated values and management practices 
D) Moral intensity and management practices 
A) AICPA Code of Professional Conduct 
B) Rules and regulations of the SEC 
C) Stated values and management practices 
D) Moral intensity and management practices

Question 15

The ethical dilemma in the Research Triangle Software Innovations case can best be summed up as:

Accepted Answer

A) Should an auditor share information about a client with a nonaudit member of the firm? 
B) Is it appropriate to select an audit client's ERP software for a different advisory services client? 
C) Should the audit firm recommend its own ERP software package to an audit client? 
D) Is it appropriate to engage in ERP management advisory services for an audit client? 
A) Should an auditor share information about a client with a nonaudit member of the firm? 
B) Is it appropriate to select an audit client's ERP software for a different advisory services client? 
C) Should the audit firm recommend its own ERP software package to an audit client? 
D) Is it appropriate to engage in ERP management advisory services for an audit client?

Question 16

Bobek et al.found that nonpartners are more likely to perceive the ethical environment of their firm as strong when they:

Accepted Answer

A) Believe they have a meaningful role in shaping and maintaining the ethical environment of their firms 
B) Believe ethical leaders consider their interests in firm decision making 
C) Are included in firm decision making 
D) Have a high frequency of receiving mentoring 
A) Believe they have a meaningful role in shaping and maintaining the ethical environment of their firms 
B) Believe ethical leaders consider their interests in firm decision making 
C) Are included in firm decision making 
D) Have a high frequency of receiving mentoring

Question 17

Ponemon hypothesized that there is a correlation between:

Accepted Answer

A) Moral intensity and subordinates' personal characteristics and decision-making styles 
B) Organizational culture and subordinates' personal characteristics and decision-making styles 
C) Culture of the organization and leadership style 
D) Leadership style and followership 
A) Moral intensity and subordinates' personal characteristics and decision-making styles 
B) Organizational culture and subordinates' personal characteristics and decision-making styles 
C) Culture of the organization and leadership style 
D) Leadership style and followership

Question 18

Leadership in accounting is different than leadership in most other organizations because:

Accepted Answer

A) Accountants are regulated by state board of accountancy 
B) Accountants are expected to place the public interest above all else 
C) Accountants are obligated to follow a strict code of ethics 
D) Accountants are answerable to firm management,not their clients 
A) Accountants are regulated by state board of accountancy 
B) Accountants are expected to place the public interest above all else 
C) Accountants are obligated to follow a strict code of ethics 
D) Accountants are answerable to firm management,not their clients

Question 19

With respect to ethical leadership,the issue in the Cumberland Lumber case can best be characterized as:

Accepted Answer

A) The relationship between the chief internal auditor and CEO 
B) The leadership style of the CEO and culture of the company 
C) The leadership style of the chief internal auditor and tone at the top 
D) The relationship between an audit client and management advisory services client 
A) The relationship between the chief internal auditor and CEO 
B) The leadership style of the CEO and culture of the company 
C) The leadership style of the chief internal auditor and tone at the top 
D) The relationship between an audit client and management advisory services client

Question 20

Values-based leadership can best be summed up as:

Accepted Answer

A) Clearly articulating a vision for the organization 
B) Defining organizational values and work culture 
C) Clearly articulating and demonstrating one's values 
D) Using the Giving Voice to Values methodology to create a culture of compliance 
A) Clearly articulating a vision for the organization 
B) Defining organizational values and work culture 
C) Clearly articulating and demonstrating one's values 
D) Using the Giving Voice to Values methodology to create a culture of compliance

Accountants may hesitate to record a questionable entry if they know:

In Brennan and Kelly's study of the factors that influence propensity or willingness to blow the whistle among audit trainees,the authors identified each of the following factors except:

De Cremer and Tenbrunsel characterize ethical leadership in part as:

The results of Morris' study of the influence of authentic leadership and ethical firm culture on auditor behavior is:

Bobek et al.found a disconnect between tax partners and nonpartner tax practitioners with respect to:

Ethical leadership competence refers to:

Discuss the role of ethical leadership behavior in public accounting firms and how ethical leadership influences the internal communication and employee outcomes in the organization.

Social Learning Theory holds that:

Followership,servant leaders,and authenticity all share the following common characteristic:

The Giving Voice to Values framework distinguishes between organizational and individual values because:

An important factor in evaluating moral intensity is:

Selection-socialization bias in audit firms pertains to:

Taylor and Curtis studied the complex relationships in accounting firms that influence an individual's decision to report an ethical violation and found at the center of these potentially conflicting layers of commitment lies:

The ethical environment within an accounting firm is created through adherence to the:

The ethical dilemma in the Research Triangle Software Innovations case can best be summed up as:

Bobek et al.found that nonpartners are more likely to perceive the ethical environment of their firm as strong when they:

Ponemon hypothesized that there is a correlation between:

Leadership in accounting is different than leadership in most other organizations because:

With respect to ethical leadership,the issue in the Cumberland Lumber case can best be characterized as:

Values-based leadership can best be summed up as:

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Organizational Ethics and Corporate Governance

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Filters

Exam 8: Ethical Leadership and Decision-Making in Accounting

Accountants may hesitate to record a questionable entry if they know:

In Brennan and Kelly's study of the factors that influence propensity or willingness to blow the whistle among audit trainees,the authors identified each of the following factors except:

De Cremer and Tenbrunsel characterize ethical leadership in part as:

The results of Morris' study of the influence of authentic leadership and ethical firm culture on auditor behavior is:

Bobek et al.found a disconnect between tax partners and nonpartner tax practitioners with respect to:

Ethical leadership competence refers to:

Discuss the role of ethical leadership behavior in public accounting firms and how ethical leadership influences the internal communication and employee outcomes in the organization.

Social Learning Theory holds that:

Followership,servant leaders,and authenticity all share the following common characteristic:

The Giving Voice to Values framework distinguishes between organizational and individual values because:

An important factor in evaluating moral intensity is:

Selection-socialization bias in audit firms pertains to:

Taylor and Curtis studied the complex relationships in accounting firms that influence an individual's decision to report an ethical violation and found at the center of these potentially conflicting layers of commitment lies:

The ethical environment within an accounting firm is created through adherence to the:

The ethical dilemma in the Research Triangle Software Innovations case can best be summed up as:

Bobek et al.found that nonpartners are more likely to perceive the ethical environment of their firm as strong when they:

Ponemon hypothesized that there is a correlation between:

Leadership in accounting is different than leadership in most other organizations because:

With respect to ethical leadership,the issue in the Cumberland Lumber case can best be characterized as:

Values-based leadership can best be summed up as:

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Organizational Ethics and Corporate Governance

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Filters