Question 1

With respect to the importance of moral issues in business,Thomas Jones posited that:

Accepted Answer

A) Moral issues of high intensity are more pronounced than those of low intensity 
B) Moral issues of high intensity are subtler and difficult to evaluate 
C) Moral issues of low intensity are more pronounced because they are difficult to identify 
D) Moral issues of high and low intensity have equal effects on decision making 
A) Moral issues of high intensity are more pronounced than those of low intensity 
B) Moral issues of high intensity are subtler and difficult to evaluate 
C) Moral issues of low intensity are more pronounced because they are difficult to identify 
D) Moral issues of high and low intensity have equal effects on decision making

Question 2

As a manager in her firm,Lucy concerns herself with the effectiveness of internal controls.Her main focus is how efficient and effective the company's internal controls are over time.Which component of internal control is Lucy engaging in?

Accepted Answer

A) Risk assessment 
B) Control activities 
C) Control environment 
D) Monitoring 
A) Risk assessment 
B) Control activities 
C) Control environment 
D) Monitoring

Question 3

The role of a leader in an organization is to:

Accepted Answer

A) Establish principles and standards of behavior that guide business decisions 
B) Enforce violations of code rules of conduct 
C) Determine organizational climate and define norms 
D) Develop the principles and strategic initiatives to guide ethical action 
A) Establish principles and standards of behavior that guide business decisions 
B) Enforce violations of code rules of conduct 
C) Determine organizational climate and define norms 
D) Develop the principles and strategic initiatives to guide ethical action

Question 4

Which of the following was the most frequent anti-fraud control identified in the 2014 ACFE Global Fraud Survey?

Accepted Answer

A) External audit of financial statements 
B) Code of conduct 
C) Internal audit department 
D) External audit of internal controls over financial reporting 
A) External audit of financial statements 
B) Code of conduct 
C) Internal audit department 
D) External audit of internal controls over financial reporting

Question 5

An ethical organization includes the following traits:

Accepted Answer

A) Zero tolerance for individual and collective mistakes 
B) Shared values,goals,and problem-solving mechanisms 
C) A focus on results over process 
D) A culture of do what I say,not what I do 
A) Zero tolerance for individual and collective mistakes 
B) Shared values,goals,and problem-solving mechanisms 
C) A focus on results over process 
D) A culture of do what I say,not what I do

Question 6

According to the ACFE survey,the most common type of occupational fraud scheme is:

Accepted Answer

A) Corruption 
B) Fraudulent billing 
C) Illegal gratuities 
D) Asset misappropriation 
A) Corruption 
B) Fraudulent billing 
C) Illegal gratuities 
D) Asset misappropriation

Question 7

The ACFE found that the most common way that fraud is first detected is:

Accepted Answer

A) Internal audit 
B) Internal controls 
C) External audit 
D) Tip 
A) Internal audit 
B) Internal controls 
C) External audit 
D) Tip

Question 8

Which of the following is NOT a factor that managers use to set the right tone at the top and foster ethical leadership?

Accepted Answer

A) Consider the implications of one's actions on the stakeholders 
B) Make decisions that do not harm others 
C) Make decisions that are universal 
D) Reflect before deciding 
A) Consider the implications of one's actions on the stakeholders 
B) Make decisions that do not harm others 
C) Make decisions that are universal 
D) Reflect before deciding

Question 9

The key fraud issue in the Franklin Industries Whistleblowing Case is:

Accepted Answer

A) Fraudulent financial statements were covered-up 
B) Corporate culture pressured an employee to go along with fraud 
C) Retaliation for reporting an embezzlement fraud 
D) Recording revenues too soon led to fraudulent statements 
A) Fraudulent financial statements were covered-up 
B) Corporate culture pressured an employee to go along with fraud 
C) Retaliation for reporting an embezzlement fraud 
D) Recording revenues too soon led to fraudulent statements

Question 10

What was the result of the annual inventory audit of the inventory shrinkage problem at Walmart?

Accepted Answer

A) Inventory shrinkage doubled year-over-year 
B) Inventory shrinkage increased by 90 percent 
C) Inventory shrinkage decreased by 90 percent 
D) There was no change in inventory shrinkage 
A) Inventory shrinkage doubled year-over-year 
B) Inventory shrinkage increased by 90 percent 
C) Inventory shrinkage decreased by 90 percent 
D) There was no change in inventory shrinkage

Question 11

With respect to whistleblowing,the Sarbanes-Oxley Act:

Accepted Answer

A) Protects employees of publicly traded companies who provide evidence in fraud cases 
B) Confers legal protection on managers who reported wrongdoing by top executives 
C) Confers legal protection on the board of directors for fraudulent actions by management 
D) Protects auditors who blow the whistle to the SEC 
A) Protects employees of publicly traded companies who provide evidence in fraud cases 
B) Confers legal protection on managers who reported wrongdoing by top executives 
C) Confers legal protection on the board of directors for fraudulent actions by management 
D) Protects auditors who blow the whistle to the SEC

Question 12

The fraud at Groupon occurred because the company:

Accepted Answer

A) Accelerated the recording of customer revenues from high-priced offers 
B) Delayed recording customer refunds 
C) Failed to set aside enough money to cover customer refunds 
D) Included revenue from nonexistent customers 
A) Accelerated the recording of customer revenues from high-priced offers 
B) Delayed recording customer refunds 
C) Failed to set aside enough money to cover customer refunds 
D) Included revenue from nonexistent customers

Question 13

Strong corporate governance relies on a strong board of directors.Which of the following would be a strong candidate to be a board director for XYZ,Inc.?

Accepted Answer

A) Community member who has already served on the board for 15 years. 
B) Investor who has a multi-million-dollar joint venture with the CEO and CFO. 
C) Retired controller of a Fortune 500 company. 
D) Community member who receives annual large consulting contracts from XYZ. 
A) Community member who has already served on the board for 15 years. 
B) Investor who has a multi-million-dollar joint venture with the CEO and CFO. 
C) Retired controller of a Fortune 500 company. 
D) Community member who receives annual large consulting contracts from XYZ.

Question 14

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers.What is the act's effect on whistleblowing by accountants?

Accepted Answer

A) No accountant,internal or external,whether by job title or certification may receive a reward. 
B) All accountants who whistle-blow are protected against retaliation,but may not receive a reward. 
C) Internal auditors who whistle-blow may not receive a reward. 
D) A CPA may report a violation of a public accounting firm's performance in an audit. 
A) No accountant,internal or external,whether by job title or certification may receive a reward. 
B) All accountants who whistle-blow are protected against retaliation,but may not receive a reward. 
C) Internal auditors who whistle-blow may not receive a reward. 
D) A CPA may report a violation of a public accounting firm's performance in an audit.

Question 15

Which of the following is NOT one of the audit committee's responsibilities?

Accepted Answer

A) Monitor the integrity of the financial statements 
B) Review all financial reporting judgments 
C) Review whistleblowing and compliance processes 
D) Review and monitor the external audit process 
A) Monitor the integrity of the financial statements 
B) Review all financial reporting judgments 
C) Review whistleblowing and compliance processes 
D) Review and monitor the external audit process

Question 16

Analyze the reaction of Toyota from an ethical perspective to disclosures that occurred in late 2009 and early 2010 that the accelerator in some brands might get stuck and result in unintended acceleration of the car.How does Toyota's reaction relate to that of Ford with the Pinto and Johnson & Johnson with the Tylenol poisoning?

Accepted Answer

A review of the Ford Pinto situation is

Question 17

The seven signs of a pending ethical collapse include all but:

Accepted Answer

A) Pressure to make numbers 
B) Whistleblowing hotline 
C) Bigger than life CEO 
D) Conflicts of interest overlooked 
A) Pressure to make numbers 
B) Whistleblowing hotline 
C) Bigger than life CEO 
D) Conflicts of interest overlooked

Question 18

The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called:

Accepted Answer

A) Duty of loyalty 
B) Duty of care 
C) Transparency 
D) Fairness 
A) Duty of loyalty 
B) Duty of care 
C) Transparency 
D) Fairness

Question 19

Under certain circumstances,internal accountants are eligible to become Dodd-Frank whistleblowers.Which of the following is not one of those conditions?

Accepted Answer

A) Disclosure to the SEC is needed to prevent "substantial injury" to the financial interest of an entity or its investors 
B) The whistleblower "reasonably believes" the entity is impeding investigation of the misconduct 
C) The whistleblower has first reported the violation internally and at least 120 days have passed with no action 
D) Disclosure to the SEC is needed to prevent "substantial injury" to the audit firm 
A) Disclosure to the SEC is needed to prevent "substantial injury" to the financial interest of an entity or its investors 
B) The whistleblower "reasonably believes" the entity is impeding investigation of the misconduct 
C) The whistleblower has first reported the violation internally and at least 120 days have passed with no action 
D) Disclosure to the SEC is needed to prevent "substantial injury" to the audit firm

Question 20

Which of the following is not a fraud method to overstate revenues?

Accepted Answer

A) Recording future sales in the current period 
B) Recording sales of products that are out on consignment 
C) Recording sales based onF.O.B.shipping point 
D) Recording revenues of other companies by acting as a middleman 
A) Recording future sales in the current period 
B) Recording sales of products that are out on consignment 
C) Recording sales based onF.O.B.shipping point 
D) Recording revenues of other companies by acting as a middleman

With respect to the importance of moral issues in business,Thomas Jones posited that:

As a manager in her firm,Lucy concerns herself with the effectiveness of internal controls.Her main focus is how efficient and effective the company's internal controls are over time.Which component of internal control is Lucy engaging in?

The role of a leader in an organization is to:

Which of the following was the most frequent anti-fraud control identified in the 2014 ACFE Global Fraud Survey?

An ethical organization includes the following traits:

According to the ACFE survey,the most common type of occupational fraud scheme is:

The ACFE found that the most common way that fraud is first detected is:

Which of the following is NOT a factor that managers use to set the right tone at the top and foster ethical leadership?

The key fraud issue in the Franklin Industries Whistleblowing Case is:

What was the result of the annual inventory audit of the inventory shrinkage problem at Walmart?

With respect to whistleblowing,the Sarbanes-Oxley Act:

The fraud at Groupon occurred because the company:

Strong corporate governance relies on a strong board of directors.Which of the following would be a strong candidate to be a board director for XYZ,Inc.?

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers.What is the act's effect on whistleblowing by accountants?

Which of the following is NOT one of the audit committee's responsibilities?

The seven signs of a pending ethical collapse include all but:

The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called:

Under certain circumstances,internal accountants are eligible to become Dodd-Frank whistleblowers.Which of the following is not one of those conditions?

Which of the following is not a fraud method to overstate revenues?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters

Exam 3: Organizational Ethics and Corporate Governance

With respect to the importance of moral issues in business,Thomas Jones posited that:

As a manager in her firm,Lucy concerns herself with the effectiveness of internal controls.Her main focus is how efficient and effective the company's internal controls are over time.Which component of internal control is Lucy engaging in?

The role of a leader in an organization is to:

Which of the following was the most frequent anti-fraud control identified in the 2014 ACFE Global Fraud Survey?

An ethical organization includes the following traits:

According to the ACFE survey,the most common type of occupational fraud scheme is:

The ACFE found that the most common way that fraud is first detected is:

Which of the following is NOT a factor that managers use to set the right tone at the top and foster ethical leadership?

The key fraud issue in the Franklin Industries Whistleblowing Case is:

What was the result of the annual inventory audit of the inventory shrinkage problem at Walmart?

With respect to whistleblowing,the Sarbanes-Oxley Act:

The fraud at Groupon occurred because the company:

Strong corporate governance relies on a strong board of directors.Which of the following would be a strong candidate to be a board director for XYZ,Inc.?

The 2010 Dodd-Frank Act includes additional incentives for whistleblowers.What is the act's effect on whistleblowing by accountants?

Which of the following is NOT one of the audit committee's responsibilities?

The seven signs of a pending ethical collapse include all but:

The level of care expected of a reasonable person under similar circumstances in meeting one's fiduciary duty is called:

Under certain circumstances,internal accountants are eligible to become Dodd-Frank whistleblowers.Which of the following is not one of those conditions?

Which of the following is not a fraud method to overstate revenues?

Ethical Reasoning: Implications for Accounting

Cognitive Processes and Ethical Decision Making in Accounting

Ethics and Professional Judgment in Accounting

Fraud in Financial Statements and Auditor Responsibilities

Legal, Regulatory, and Professional Obligations of Auditors

Earnings Management

Ethical Leadership and Decision-Making in Accounting

Filters