Exam 3: Organizational Ethics and Corporate Governance

Trust in business is important because:

Which of the following is not an element of an ethical corporate culture?

Which of the following was not a finding of the ACFE 2014 Report to the Nation on Occupational Fraud?

Lawsuits filed against Johnson & Johnson for product defects years after the Tylenol affair best illustrates that:

Has SOX accomplished its intended goal of reliable financial reporting by public companies?

What is the ethical issue in the Rite Aid Inventory Surplus Fraud case?

Which of the following is NOT a characteristic behavior illustrating the fiduciary duty of the board of directors?

Kyle and Luis were friends since rooming together in college ten years ago.They were both finance and accounting double majors.They were each other's weddings and their wives were also good friends.After college Kyle went on to get his CPA license and ultimately went to work as controller,and then CFO,of a publicly held hardware chain,King's Hardware.King's had twenty-five retail outlets in a five state region and looking at acquiring a hardware chain (Rex's) of six retail outlets in a state that King's wants to get a presence in.Luis worked for a bank after college but then changed to being a real estate investor.Luis was the one who gave Kyle the tip on Rex's being open to a takeover offer; Luis was the realtor for all of Rex's store locations. Kyle hired a CPA firm to do due diligence for the acquisition,including updated appraisals of Rex's store locations and valuations of contents of each store.Kyle had the report.The problem was that the report is showing that Luis was a 10% owner of Rex's; would be paid a 15% commission by Rex's upon a successful buy-out; and,most troubling of all,the value of Rex's locations and inventory was overstated on Rex's books by 50%. Kyle is considering who to tell,how,when.Most of all he is feeling betrayed by Luis. 1.What are the ethical issues? 2.What would you do next and why? Consider the following in your response. •What do you need to say,to whom,and in what sequence? •What are the reasons and rationalizations you are likely to hear from those who would try to detract you from your goal? •How can you counteract those pressures? What is your powerful and persuasive response to these arguments? To whom should you make them? When and in what context?

In the Pinto case,Ford relied on which approaches to ethical reasoning to decide on a course of action with respect to the faulty gas tank placement:

The SEC has increased focus on identifying and penalizing misstatements in public company financials.What is one method that the SEC is using to identify companies,CEOs,and CFOs that are misstating financial statements?

The 2013 Ethics Resource Center National Business Ethics Survey indicates each of the following results with respect to how employees view the ethics and ethical practices of organizations they work for except:

Jodie Fisher's allegations of sexual harassment are made believable due to Mark Hurd's:

Lana is a CPA and works as an internal auditor for Dynamite,Inc.As she was performing a revenue timing test,for the internal audit schedule and the external auditors,she noticed that the Western division consistently kept the books open 4 days into the next quarter.Lana immediately reported to the Chief Internal Auditor; together they took the issue to the CFO and Controller.The CFO assured them that the issue would be resolved.It has been 90 days since the meeting.Lana is considering blowing the whistle but cannot decide who to tell and when. What are the ethical issues of concern for Lana? What would you advise Lana to do,how,to whom and in what order,assuming she could qualify for a reward under Dodd-Frank?

Organizational ethics can be thought of as:

Backdating of stock options is unethical because:

A unique aspect of occupational fraud is:

To ensure audit committee independence,the committee should meet separately with each of the following groups except:

Compensation of executives has soared over the last forty plus years to more than 400 times the pay for average workers.Remedies to rein in executive compensation include all but:

Which of the following is NOT an underlying trait of character of an effective leader identified by Johnson?

In the Bhopal case,in evaluating its exposure to possible future liability due to technology failures,Union Carbide used which of the following concepts?