Question 1

What is the role of moral intensity,organizational culture,and ethical leadership in promoting ethical behavior?

Accepted Answer

The answer of What is the role of moral intensity,organizational...

Question 2

An essential element in creating an ethical environment in an audit firm is:

Accepted Answer

A) Socialization of employees 
B) Moral intensity of the situation 
C) Responsible leadership of the firm 
D) Firm values,behavior and attitudes

Question 3

Organizational dissidence in audit firms is created when:

Accepted Answer

A) Client interests are placed ahead of the public interest 
B) Firm interests are placed ahead of the public interest 
C) Individual values do not fit into expectations of the firm 
D) Individual values lead to firms changing their values to achieve greater socialization

Question 4

A good example of antisocial behavior is:

Accepted Answer

A) Dennis Kozlowski's use of corporate resources for personal purposes 
B) Betty Vinson's decisions to go along with financial wrongdoing 
C) Jeff Skilling's policy of "rank and yank" 
D) Whistleblowing by Cynthia Cooper

Question 5

Discuss how moral intensity,organizational culture,and ethical leadership influence behavior in accounting.

Accepted Answer

The answer of Discuss how moral intensity,organizational culture,and ethical leadership...

Question 6

The leadership style of management at Krispy Kreme can best be summed up as:

Accepted Answer

A) Aggressively sought to manage earnings using round-trip transactions 
B) Pressured auditors to overlook material misstatements in the financial statements 
C) Encouraged employees to engage in deception and fraud through franchisees 
D) All of the above

Question 7

The fraud at HealthSouth at the structural level of the company was more intense because:

Accepted Answer

A) The external auditors went along with the fraud 
B) The board of directors managed the fraud 
C) Checks and balances were eliminated and organizational culture was compromised 
D) There was no hotline to report financial fraud

Question 8

Transformational leaders:

Accepted Answer

A) Empower employees to act based on their ethical goals and values 
B) Follow what top management sets as its goals for the organization 
C) Causes change in individuals and social systems 
D) Connect the follower's behavior to the collective identity of the organization

Question 9

The statement about leadership attributed to John Maxwell is:

Accepted Answer

A) Visions are not simple goals,but rather ways of seeing the future that implicitly or explicitly entail some notion of the good 
B) Principle-centered leaders build greater,more trusting and communicative relationships with others in the workplace 
C) Leaders lead by example not based on what they say 
D) Leaders always follow the law even if it deviates from ethical action

Question 10

Each of the following is a factor that needs to be evaluated for moral intensity except:

Accepted Answer

A) Magnitude of consequences of the moral act 
B) Degree of social consensus that the moral act is unethical 
C) Feelings of proximity of the moral agent to the moral act 
D) All of the above are relevant factors

Question 11

Trevino et al.believe ethical leaders possess each of the following two traits:

Accepted Answer

A) Moral follower and moral servant 
B) Moral person and moral manager 
C) Moral person and moral employee 
D) Moral person and transformational leader

Question 12

With respect to leadership in the accounting profession,it might be said that:

Accepted Answer

A) Ethical judgment is more important than how one makes decisions 
B) Partners must exhibit moral imagination through ethical perception of what it means to be ethical,professional,and successful 
C) Partners must exhibit ethical decision making through ethical sensitivity to the needs of one's firm 
D) How one makes decisions is more important than ethical leadership

Question 13

Taylor and Curtis found from their study of whistleblowing among public accounting seniors that:

Accepted Answer

A) Moral intensity affects the intention to report wrongdoing 
B) Moral intensity is independent of the intention to report wrongdoing 
C) Ethical leaders ignore the magnitude of consequences when deciding whether to blow the whistle 
D) Ethical leaders base their decision whether to blow the whistle on temporal immediacy of the effect of the moral act

Question 14

Character and leadership go hand in hand.Explain the elements of character-based leadership.

Accepted Answer

The answer of Character and leadership go hand in hand.Explain...

Question 15

The Ethical Leadership Scale developed by Kelly and Early identify each of the following measures of leadership:

Accepted Answer

A) Personal ethical competence,ethical leadership,and ethical standards 
B) Personal ethical competence,ethical standards,and ethical organization 
C) Personal ethical competence,ethical leadership,and ethical organization 
D) Ethical leadership,moral intensity,and ethical culture

Question 16

Ethical leadership failure can be caused by:

Accepted Answer

A) Lines of communication are blurred 
B) Ignoring ethical boundaries within a company 
C) Organizational factors promote unethical action 
D) All of the above

Question 17

A unique aspect of the story of ethical leadership illustrated by Diem-Thi Le is that:

Accepted Answer

A) Le's working papers were altered by her supervisor 
B) Le's audit opinion was changed from modified to unmodified 
C) Le's whistleblowing complaint did not lead to retaliation 
D) Le was fired from her job

Question 18

The more intense the ethical issues,the more likely:

Accepted Answer

A) Decision makers will act in accordance with their own ethical values 
B) Decision makers are aware of the ethical implications of their intended actions 
C) Organizations will foster ethical behavior 
D) Organizations will establish an ethical tone at the top

Question 19

Servant leaders:

Accepted Answer

A) Advocate a perspective that leaders have a responsibility to serve their followers by helping them to achieve followers' goals 
B) Servant leadership is the flip side of authentic leadership 
C) Promote a culture that enhances organizational outcomes 
D) Help followers to fulfill their needs by modeling ethical values,attitudes and behaviors

Question 20

The KPMG tax shelter case deals with:

Accepted Answer

A) The culture of the tax practice and aggressive marketing of tax shelters to wealthy clients 
B) The influence of independence and objectivity in selling tax shelter products to audit clients 
C) The use of the a realistic possibility of success opinion letter on tax shelters for clients 
D) The aggressiveness of tax clients in demanding the firm provide opinion letters on tax shelter products

Exam 8: Ethical Leadership and Decision-Making in Accounting