Question 1

Discuss how conflicts of interests can arise in a profession.

Accepted Answer

A conflict of interest exists where a pe

Question 2

Identify the external mechanism that seeks to ensure ethical corporate governance.

Accepted Answer

A) The Sarbanes-Oxley Act 
B) The COSO framework 
C) The European Union 7th Directive 
D) The European Union 4th Directive 
A) The Sarbanes-Oxley Act 
B) The COSO framework 
C) The European Union 7th Directive 
D) The European Union 4th Directive

Question 3

Section 201 of the Sarbanes-Oxley Act addresses the:

Accepted Answer

A) rules of professional responsibility for attorneys. 
B) codes of ethics for senior financial officers. 
C) management assessment of internal controls. 
D) services outside the scope of auditors. 
A) rules of professional responsibility for attorneys. 
B) codes of ethics for senior financial officers. 
C) management assessment of internal controls. 
D) services outside the scope of auditors.

Question 4

Section 406 of the Sarbanes-Oxley Act addresses the:

Accepted Answer

A) rules of professional responsibility for attorneys. 
B) codes of ethics for senior financial officers. 
C) management assessment of internal controls. 
D) services outside the scope of auditors. 
A) rules of professional responsibility for attorneys. 
B) codes of ethics for senior financial officers. 
C) management assessment of internal controls. 
D) services outside the scope of auditors.

Question 5

A professional is said to have _____ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests.

Accepted Answer

A) statutory duties 
B) executive rights 
C) creditor claims 
D) fiduciary duties 
A) statutory duties 
B) executive rights 
C) creditor claims 
D) fiduciary duties

Question 6

Identify the gatekeepers who ensure that decisions and transactions conform to the law.

Accepted Answer

A) Accountants 
B) Attorneys 
C) Auditors 
D) Analysts 
A) Accountants 
B) Attorneys 
C) Auditors 
D) Analysts

Question 7

Which provisions of the Sarbanes-Oxley Act have the most impact on corporate governance and boards?

Accepted Answer

The following provisions have the most s

Question 8

The _____ standards for internal controls moved audit, compliance, and governance from a numbers orientation to concern for the organizational environment.

Accepted Answer

COSO
Explanation: The COSO sta

Question 9

Which of the following are additional ethical responsibilities board members should have beyond legal obligations?

Accepted Answer

A) They should maintain closed conversations within the firm. 
B) They should refrain from providing oversight. 
C) They should be critical in their inquiries about corporate vulnerabilities. 
D) They should pay out a significant amount of the company's sustainable growth dollars to its chief executives in compensation. 
A) They should maintain closed conversations within the firm. 
B) They should refrain from providing oversight. 
C) They should be critical in their inquiries about corporate vulnerabilities. 
D) They should pay out a significant amount of the company's sustainable growth dollars to its chief executives in compensation.

Question 10

Which of the following COSO elements provides assessment capabilities and uncovers vulnerabilities?

Accepted Answer

A) Risk assessment 
B) Information and communications 
C) Control activities 
D) Ongoing monitoring 
A) Risk assessment 
B) Information and communications 
C) Control activities 
D) Ongoing monitoring

Question 11

The Public Accounting Reform and Investor Protection Act of 2002 is commonly known as the ____.

Accepted Answer

Sarbanes-Oxley Act
Explanation

Question 12

How can lofty executive compensation serve corporate interests?

Accepted Answer

In theory, lofty compensation packages a

Question 13

Which of the following gatekeepers guarantee that executives act on behalf of the stockholders' interests?

Accepted Answer

A) Accountants 
B) Board of directors 
C) Auditors 
D) Analysts 
A) Accountants 
B) Board of directors 
C) Auditors 
D) Analysts

Question 14

Executive compensation packages based on _____ create huge incentives to artificially inflate stock value.

Accepted Answer

stock options
Explanation: Exe

Question 15

What are the requirements of and the most significant criticism of the Sarbanes-Oxley Act?

Accepted Answer

The Sarbanes-Oxley Act includes requirem

Question 16

Laying-off of employees is one of the slowest ways to increase stock price.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a criticism of the Sarbanes-Oxley Act?

Accepted Answer

A) It excludes requirements for certification of documents by officers. 
B) It imposes extraordinary financial costs on the firms. 
C) It does not require lawyers to report concerns of wrongdoing if not addressed. 
D) It does not require codes of ethics for senior financial officers. 
A) It excludes requirements for certification of documents by officers. 
B) It imposes extraordinary financial costs on the firms. 
C) It does not require lawyers to report concerns of wrongdoing if not addressed. 
D) It does not require codes of ethics for senior financial officers.

Question 18

Which of the following elements of COSO sets the tone or culture of a firm?

Accepted Answer

A) Ongoing monitoring 
B) Information and communications 
C) Risk assessment 
D) Control environment 
A) Ongoing monitoring 
B) Information and communications 
C) Risk assessment 
D) Control environment

Question 19

The board can prohibit actions to protect the long-term sustainability of a firm.

Accepted Answer

A) True 
 B)False

Question 20

In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.

Accepted Answer

A) True 
 B)False

Discuss how conflicts of interests can arise in a profession.

Identify the external mechanism that seeks to ensure ethical corporate governance.

Section 201 of the Sarbanes-Oxley Act addresses the:

Section 406 of the Sarbanes-Oxley Act addresses the:

A professional is said to have _____ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests.

Identify the gatekeepers who ensure that decisions and transactions conform to the law.

Which provisions of the Sarbanes-Oxley Act have the most impact on corporate governance and boards?

The _____ standards for internal controls moved audit, compliance, and governance from a numbers orientation to concern for the organizational environment.

Which of the following are additional ethical responsibilities board members should have beyond legal obligations?

Which of the following COSO elements provides assessment capabilities and uncovers vulnerabilities?

The Public Accounting Reform and Investor Protection Act of 2002 is commonly known as the ____.

How can lofty executive compensation serve corporate interests?

Which of the following gatekeepers guarantee that executives act on behalf of the stockholders' interests?

Executive compensation packages based on _____ create huge incentives to artificially inflate stock value.

What are the requirements of and the most significant criticism of the Sarbanes-Oxley Act?

Laying-off of employees is one of the slowest ways to increase stock price.

Which of the following is a criticism of the Sarbanes-Oxley Act?

Which of the following elements of COSO sets the tone or culture of a firm?

The board can prohibit actions to protect the long-term sustainability of a firm.

In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.

Ethics and Business

Ethical Decision Making: Personal and Professional Contexts

Philosophical Ethics and Business

The Corporate Culture-Impact and Implications

Corporate Social Responsibility

Ethical Decision Making: Employer Responsibilities and Employee Rights

Ethical Decision Making: Technology and Privacy in the Workplace

Ethics and Marketing

Business and Environmental Sustainability

Filters

Exam 10: Ethical Decision Making: Corporate Governance, Accounting, and Finance

Discuss how conflicts of interests can arise in a profession.

Identify the external mechanism that seeks to ensure ethical corporate governance.

Section 201 of the Sarbanes-Oxley Act addresses the:

Section 406 of the Sarbanes-Oxley Act addresses the:

A professional is said to have _____ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests.

Identify the gatekeepers who ensure that decisions and transactions conform to the law.

Which provisions of the Sarbanes-Oxley Act have the most impact on corporate governance and boards?

The _____ standards for internal controls moved audit, compliance, and governance from a numbers orientation to concern for the organizational environment.

Which of the following are additional ethical responsibilities board members should have beyond legal obligations?

Which of the following COSO elements provides assessment capabilities and uncovers vulnerabilities?

The Public Accounting Reform and Investor Protection Act of 2002 is commonly known as the ____.

How can lofty executive compensation serve corporate interests?

Which of the following gatekeepers guarantee that executives act on behalf of the stockholders' interests?

Executive compensation packages based on _____ create huge incentives to artificially inflate stock value.

What are the requirements of and the most significant criticism of the Sarbanes-Oxley Act?

Laying-off of employees is one of the slowest ways to increase stock price.

Which of the following is a criticism of the Sarbanes-Oxley Act?

Which of the following elements of COSO sets the tone or culture of a firm?

The board can prohibit actions to protect the long-term sustainability of a firm.

In terms of ethical theory, lofty compensation packages have a utilitarian function when they act as incentives for executives to produce greater overall results.

Ethics and Business

Ethical Decision Making: Personal and Professional Contexts

Philosophical Ethics and Business

The Corporate Culture-Impact and Implications

Corporate Social Responsibility

Ethical Decision Making: Employer Responsibilities and Employee Rights

Ethical Decision Making: Technology and Privacy in the Workplace

Ethics and Marketing

Business and Environmental Sustainability

Filters