Exam 1: Ethical Reasoning: Implications for Accounting

Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family-owned business, Cal Poly Greenery. The company has only three employees - Steve, the husband, and the wife. All three have been friends for many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective, Steve has

When applying Utilitarianism to judge actions, what is the only thing that matters?

Susie, a newly graduated BBA in accounting, has started job with the state budgeting office. Susie has responsibility over travel expenses expense accounts. The state has a travel policy stating that a state employee may be reimbursed up to $90 per night for a hotel room and up to $40 per day for meals, as long as the employee turns in food receipts. On the first expense account Susie works on the employee has a hotel receipt for $130 a night but no food expenses. Susie processes the reimbursement for $90. The employee becomes irate as his reading of the travel policy is that he can be reimbursed for $130 a night for hotel and food with a receipt. The employee claims this has never been a problem in the past and has always been reimbursed $130 a night whether for hotel only or both hotel and food. Discuss which ethical theory supports Susie and the employee's take on the travel policy. Which would you choose and why?

Virtue ethics is

What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?

Thomas Jefferson's writing in the preamble of the Declarations of Independence is a perfect example of what theory?

The most likely rationalization a student might use to justify cheating on an exam is:

Virtue ethics emphasizes development of good habits of character. What should be the greatest reward of practicing good habits of character, according to MacIntyre?

Aristotle defined __________ as a trait of character manifested in habitual action.

Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked to slow down "You are exceeding the time budget for the audit and making the rest of us look bad," said one staff member. The best thing for Jason to do is:

An internal accountant should always consider taking each the following steps after exhausting all avenues of appeal within the organization when there is a difference of opinion with top management on an accounting or financial reporting matter except for

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

Each of the following is an element of trustworthiness according to the Josephson Institute except for:

When making a donation at the local Goodwill, Martha tells the clerk that her old computer is in perfect working order when she knows it is not, just so she can deduct more on her taxes. Which theory best describes Martha's behavior?

Ethical relativism can best be described as a:

The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should:

The ethical issue in the Telecommunications case can best be described as:

Each of the following describes the behavior of Cynthia Cooper in the WorldCom fraud except for:

The best restatement of Kant's categorical imperative is:

The method of ethical reasoning that does not deal with making decisions after considering the interests of others is: