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

How does the lack of shareholder activism and the conflicts between services offered by public accounting firms cause conflicts in financial markets?

Which of the following provisions of the Sarbanes-Oxley Act requires lawyers to report concerns of wrongdoing if not addressed?

What is control environment?

The most basic ethical issue facing professional gatekeepers and intermediaries in business contexts involves conflicts of interest.

Insider trading is considered patently fair and ethical because it encourages employees to work hard to get access to company information.

Which provision of the Sarbanes-Oxley Act prohibits various forms of professional services that are determined to be consulting rather than auditing?

The role of _____ is to ensure that those who enter into the marketplace are playing by the rules and conforming to the very conditions that ensure the market functions as it is supposed to function.

The _____ Guidelines offer boards some specifics regarding ways to mitigate eventual fines and sentences in carrying out duties by paying attention to ethics and compliance.

Discuss the duties of care and good faith.

Explain the significance of gatekeepers.

Which of the following is true of excessive compensation packages?

Which of the following is true of gatekeepers?

While the Sarbanes-Oxley Act is an internal mechanism to ensure ethical corporate governance, the Committee of Sponsoring Organizations (COSO) is an external mechanism.

Identify the COSO element that is directed at supporting the control environment through fair and truthful transmission of facts.

Briefly discuss the conflicts of interests involved in excessive executive compensation.

In order to prevent accountants from being put into conflicts, the _____ publishes professional rules.

Identify the duty of obedience according to which board members should strive toward corporate objectives, and are not permitted to act in a way that is inconsistent with the central goals of the organization?

Discuss the control structure elements of the COSO framework.

Risk assessment provides assessment capabilities to uncover vulnerabilities of a firm.

Which of the following provisions of the Sarbanes-Oxley Act mandates majority of independents on any board and total absence of current or prior business relationships?