Question 1

Do you believe the people are innately altruistic?

Accepted Answer

The question of whether people are innat

Question 2

When an external auditor suspects that personnel at an audit client have committed an illegal act, the auditor has a duty to:

Accepted Answer

A)  Evaluate whether top management explicitly or implicitly authorized the act 
B)  Ignore the act if it concludes that the act has no financial statement effect 
C)  Confront the particular person suspected of committing the offending act 
D)  Report the act to the SEC of the audit client is a public company 
A)  Evaluate whether top management explicitly or implicitly authorized the act 
B)  Ignore the act if it concludes that the act has no financial statement effect 
C)  Confront the particular person suspected of committing the offending act 
D)  Report the act to the SEC of the audit client is a public company

Question 3

To encourage interested parties to report fraudulent accounting practices, a company maintains a whistleblower hotline. A person left a message on this hotline anonymously, but the company's Chief Regulatory Compliance Officer was able to identify this caller based on her voice and surrounding facts. As a result, the company may:

Accepted Answer

A)  Not disclose this caller's identify under any circumstances 
B)  Not disclose this caller's identity if the caller is a company employee 
C)  Not disclose this caller's identity until after the investigation concerning accounting fraud is completed 
D)  Not disclose this caller's identity until after the investigation concerning accounting fraud is completed and resolved in the company's favor 
A)  Not disclose this caller's identify under any circumstances 
B)  Not disclose this caller's identity if the caller is a company employee 
C)  Not disclose this caller's identity until after the investigation concerning accounting fraud is completed 
D)  Not disclose this caller's identity until after the investigation concerning accounting fraud is completed and resolved in the company's favor

Question 4

If an auditor discovers a suspected illegal act involving financial statement presentation occurred at a client, the auditor has a duty to:

Accepted Answer

A)  Consult with outside legal counsel to determine if the act is in fact illegal 
B)  Not mention this suspected misconduct, unless the illegality of the act is, at minimum, determined to be probable 
C)  Not mention this suspected misconduct, unless the resulting monetary liability can be determined with reasonable certainty 
D)  Inform the company's Audit Committee 
A)  Consult with outside legal counsel to determine if the act is in fact illegal 
B)  Not mention this suspected misconduct, unless the illegality of the act is, at minimum, determined to be probable 
C)  Not mention this suspected misconduct, unless the resulting monetary liability can be determined with reasonable certainty 
D)  Inform the company's Audit Committee

Question 5

Which of the following is the most common type of whistleblower?

Accepted Answer

A)  An internal whistleblower 
B)  An anonymous, external whistleblower 
C)  An external whistleblower who self-identifies himself to the general public 
D)  An external whistleblower who identifies himself to governmental authorities but requests nondisclosure to the general public 
A)  An internal whistleblower 
B)  An anonymous, external whistleblower 
C)  An external whistleblower who self-identifies himself to the general public 
D)  An external whistleblower who identifies himself to governmental authorities but requests nondisclosure to the general public

Question 6

The former CFO of a company gave the IRS information that resulted in the IRS collecting $1.2 million in unpaid taxes from this company. What is the maximum potential award that the IRS will give this informant?

Accepted Answer

A)  $60,000 
B)  $180,000 
C)  $360,000 
D)  $0 
A)  $60,000 
B)  $180,000 
C)  $360,000 
D)  $0

Question 7

The Code of Conduct adopted by the Institute of Management Accountants:

Accepted Answer

A)  Strongly encourages external whistleblowing 
B)  Discourages external whistleblowing 
C)  Requires its members, prior to becoming external whistleblowers, to first determine with a high degree of certainty that a violation of law has occurred 
D)  Frequently has been criticized by commentators for failing to provide any guidance on when members should, or should not, be external whistleblowers 
A)  Strongly encourages external whistleblowing 
B)  Discourages external whistleblowing 
C)  Requires its members, prior to becoming external whistleblowers, to first determine with a high degree of certainty that a violation of law has occurred 
D)  Frequently has been criticized by commentators for failing to provide any guidance on when members should, or should not, be external whistleblowers

Question 8

Should whistleblowers receive financial rewards if they are not acting out of altruistic motives?

Accepted Answer

The question of whether whistleblowers s

Question 9

According to statistics on external employee whistleblowers, the least important factor that motivates them to bypass internal company reporting mechanisms is:

Accepted Answer

A)  The belief that internal reporting would be futile and not result in needed corrective actions 
B)  The desire for monetary rewards 
C)  Fear of retaliation 
D)  Past experiences in which they or others were retaliated against 
A)  The belief that internal reporting would be futile and not result in needed corrective actions 
B)  The desire for monetary rewards 
C)  Fear of retaliation 
D)  Past experiences in which they or others were retaliated against

Question 10

An informant's identity will not be vigorously protected:

Accepted Answer

A)  By the IRS, under its whistleblower program 
B)  By the SEC investigators, under the SEC's whistleblower program 
C)  By appointed SEC officials 
D)  In connection with "qui tam" claims 
A)  By the IRS, under its whistleblower program 
B)  By the SEC investigators, under the SEC's whistleblower program 
C)  By appointed SEC officials 
D)  In connection with "qui tam" claims

Question 11

The AICPA Code of Professional Conduct:

Accepted Answer

A)  Makes whistleblowing concerning perceived illegal acts mandatory only if the amounts involved are material to a company 
B)  Makes whistleblowing concerning perceived illegal acts mandatory only if the whistleblower is both a CPA and a company employee 
C)  Does not make whistleblowing mandatory by CPAs working in industry, but the Integrity and Objectivity Rule expressly encourages it 
D)  Tends to discourage it due to the duty of confidentiality 
A)  Makes whistleblowing concerning perceived illegal acts mandatory only if the amounts involved are material to a company 
B)  Makes whistleblowing concerning perceived illegal acts mandatory only if the whistleblower is both a CPA and a company employee 
C)  Does not make whistleblowing mandatory by CPAs working in industry, but the Integrity and Objectivity Rule expressly encourages it 
D)  Tends to discourage it due to the duty of confidentiality

Question 12

What factors should a potential whistleblower consider before actually deciding to divulge information to a workplace authority? Do the factors that a potential whistleblower should consider depend on whether they are divulging information to a workplace authority rather than a governmental authority?

Accepted Answer

Potential whistleblowers should consider

Question 13

A new staff accountant who works for Elderweyer Corporation signed a two-year employment contract. This contract states that it "shall be renewed annually, at a salary increase of 15%, as long as the employee has complied with all companies policies throughout the year." One such company policy states that "employees may not participate as informants, and not materially assist others as informants, under any whistleblower program that pays compensation for information that may lead to adverse consequences for Elderweyer Corporation." This company policy is:

Accepted Answer

A)  A sound business practice, from a public policy perspective 
B)  Enforceable with regard to senior corporate officers, but not enforceable with regard to this new staff accountant 
C)  Enforceable with regard to corporate officers who are able to influence the content of financial statements, but not enforceable with regard to this new staff accountant 
D)  Not enforceable under any circumstances 
A)  A sound business practice, from a public policy perspective 
B)  Enforceable with regard to senior corporate officers, but not enforceable with regard to this new staff accountant 
C)  Enforceable with regard to corporate officers who are able to influence the content of financial statements, but not enforceable with regard to this new staff accountant 
D)  Not enforceable under any circumstances

Question 14

Which of the following provisions of the Dodd-Frank Act encourages internal whistleblowing?

Accepted Answer

A)  Whistleblowers customarily are given a greater reward percentage if they first reported internally before reporting externally 
B)  External whistleblowers who became aware of corporate misconduct while working as a corporation's employee may not collect a financial reward for providing that information to governmental authorities 
C)  Whistleblowers qualify to receive financial rewards only if they first reported their concerns internally before reporting them externally 
D)  Whistleblowers receive anti-retaliation protections only if they first reported their concerns internally before reporting them externally 
A)  Whistleblowers customarily are given a greater reward percentage if they first reported internally before reporting externally 
B)  External whistleblowers who became aware of corporate misconduct while working as a corporation's employee may not collect a financial reward for providing that information to governmental authorities 
C)  Whistleblowers qualify to receive financial rewards only if they first reported their concerns internally before reporting them externally 
D)  Whistleblowers receive anti-retaliation protections only if they first reported their concerns internally before reporting them externally

Question 15

What categories of individuals may not recover a financial award under the Dodd-Frank Act?

Accepted Answer

Under the Dodd-Frank Wall Street Reform

Question 16

Why is whistleblowing a relatively recent phenomenon?

Accepted Answer

Whistleblowing, as a recognized and soci

Question 17

A member of a corporation's accounting staff has determined that the CEO intentionally has recognized company revenues on certain sales contracts during the current year, even though these sales contracts do not involve the delivery of goods or services until next year. This accounting staff member is considering becoming a whistleblower.
a. From the standpoint of deontology, what factors should this accountant consider?
b. From the standpoint of consequentialism, what factors should this accountant consider?

Accepted Answer

a. From the standpoint of deontology, th

Question 18

If a "qui tam" lawsuit is victorious, the private citizen who initiated the lawsuit:

Accepted Answer

A)  Receives all proceeds from the victory, after the government recovers its costs in providing attorney representation 
B)  Receives a majority of the winnings that remain after all legal fees and costs have been paid 
C)  Receives a modest fraction of the winnings that remain after all legal fees have been paid 
D)  Does not directly participate in the winnings, which is why "qui tam" loosely means "acting altruistically for the adoration of the king" 
A)  Receives all proceeds from the victory, after the government recovers its costs in providing attorney representation 
B)  Receives a majority of the winnings that remain after all legal fees and costs have been paid 
C)  Receives a modest fraction of the winnings that remain after all legal fees have been paid 
D)  Does not directly participate in the winnings, which is why "qui tam" loosely means "acting altruistically for the adoration of the king"

Question 19

For employees who work in a corporation, which of the following are more common?

Accepted Answer

A)  Vertical whistleblowers 
B)  Horizontal whistleblowers 
C)  Internal whistleblowers 
D)  External whistleblowers 
A)  Vertical whistleblowers 
B)  Horizontal whistleblowers 
C)  Internal whistleblowers 
D)  External whistleblowers

Question 20

A company maintains a whistleblower hotline to encourage reports of abusive accounting practices within the company. The hotline allows callers to identify themselves or to remain anonymous. Under the Sarbanes-Oxley Act, if a caller provides his or her identity, this identity may:

Accepted Answer

A)  Not be disclosed by the company if the caller is a company supplier 
B)  Not be disclosed by the company if the caller is a company customer 
C)  Not be disclosed by the company if the caller is a company employee 
D)  Not be disclosed, even if the caller is an individual who is acting on behalf of a supplier, customer, or employee 
A)  Not be disclosed by the company if the caller is a company supplier 
B)  Not be disclosed by the company if the caller is a company customer 
C)  Not be disclosed by the company if the caller is a company employee 
D)  Not be disclosed, even if the caller is an individual who is acting on behalf of a supplier, customer, or employee

Do you believe the people are innately altruistic?

When an external auditor suspects that personnel at an audit client have committed an illegal act, the auditor has a duty to:

If an auditor discovers a suspected illegal act involving financial statement presentation occurred at a client, the auditor has a duty to:

Which of the following is the most common type of whistleblower?

The former CFO of a company gave the IRS information that resulted in the IRS collecting $1.2 million in unpaid taxes from this company. What is the maximum potential award that the IRS will give this informant?

The Code of Conduct adopted by the Institute of Management Accountants:

Should whistleblowers receive financial rewards if they are not acting out of altruistic motives?

According to statistics on external employee whistleblowers, the least important factor that motivates them to bypass internal company reporting mechanisms is:

An informant's identity will not be vigorously protected:

The AICPA Code of Professional Conduct:

Which of the following provisions of the Dodd-Frank Act encourages internal whistleblowing?

What categories of individuals may not recover a financial award under the Dodd-Frank Act?

Why is whistleblowing a relatively recent phenomenon?

If a "qui tam" lawsuit is victorious, the private citizen who initiated the lawsuit:

For employees who work in a corporation, which of the following are more common?

A company maintains a whistleblower hotline to encourage reports of abusive accounting practices within the company. The hotline allows callers to identify themselves or to remain anonymous. Under the Sarbanes-Oxley Act, if a caller provides his or her identity, this identity may:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue, Justice, and Social Responsibility

Why We Cheat

Greed, Corruption, and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

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Exam 12: Duties As a Whistleblower

Do you believe the people are innately altruistic?

When an external auditor suspects that personnel at an audit client have committed an illegal act, the auditor has a duty to:

If an auditor discovers a suspected illegal act involving financial statement presentation occurred at a client, the auditor has a duty to:

Which of the following is the most common type of whistleblower?

The former CFO of a company gave the IRS information that resulted in the IRS collecting $1.2 million in unpaid taxes from this company. What is the maximum potential award that the IRS will give this informant?

The Code of Conduct adopted by the Institute of Management Accountants:

Should whistleblowers receive financial rewards if they are not acting out of altruistic motives?

According to statistics on external employee whistleblowers, the least important factor that motivates them to bypass internal company reporting mechanisms is:

An informant's identity will not be vigorously protected:

The AICPA Code of Professional Conduct:

Which of the following provisions of the Dodd-Frank Act encourages internal whistleblowing?

What categories of individuals may not recover a financial award under the Dodd-Frank Act?

Why is whistleblowing a relatively recent phenomenon?

If a "qui tam" lawsuit is victorious, the private citizen who initiated the lawsuit:

For employees who work in a corporation, which of the following are more common?

A company maintains a whistleblower hotline to encourage reports of abusive accounting practices within the company. The hotline allows callers to identify themselves or to remain anonymous. Under the Sarbanes-Oxley Act, if a caller provides his or her identity, this identity may:

Introduction to Ethics

Ethical Principles and Reasoning

The Core Philosophies

Virtue, Justice, and Social Responsibility

Why We Cheat

Greed, Corruption, and Collusion

Fraud and Earnings Management

Discreditable Acts: Discrimination, Deceit, and Disclosure

Confidentiality

Independence and Moral Seduction

Conflicts of Interest

Duties of Public-Company Auditors: the Sarbanesoxley Act

Duties of Tax Professionals

Duties of Fiduciaries: Financial Planners, Trustees, and Executors

Duties in the Accounting Workplace Online Only

Filters