ACCT 5200 Ch. 2

Which of the following has been shown to influence the moral development of a manager?

- corporate culture - education - ethical training

In stage 5 of Kohlberg's model, a person is influenced by _____

- the legal contract of society - rights and values of society - evaluating harms and benefits of actions

Moral motivation includes _____

- the willingness to place ethical values ahead of nonethical values - the intentio to comply with ethical judgment

An auditor who reasons at stage six will emphasize:

- universality - integrity and objectivity

Cognitive development is based upon 20 years of research by whom?

Lawrence Kohlberg

What is moral sensitivity?

ability to interpret a situation as moral

Kohlberg asserted that development in moral _____ enables a person to become truly a moral person, both in though and action

judgment

In stage 6 o Kohlberg's model, behavior is driven by _____

universal ethical principles

In stage 5 of Kohlberg's model, behavior is driven by _____

upholding the rights and values of society

What is the ethical dilemma facing Heinz?

whether to steal the drug or not

Andersen's moral blindness with respect to Enron was caused by _____

- Enron being one of the largest accounts for Andersen - pressure from Enron - high consulting fees

Which of the following are criticisms of Kohlberg's work?

- a disregard for traits of character - an over-reliance on dilemmas to measure moral reasoning - make deontological ethics superior to other ethical perspectives

Which of the following are ways Festinger assumes will reduce dissonance?

- acquire new information that outweighs the beliefs that are not in harmony - reduce the importance of the beliefs and/or attitudes - change one or more of the attitudes, behaviors, or beliefs so the two align

The underlying features of cognitive development include _____

- an ability to make reasoned judgments - becoming more complex and sophisticated with development - developing from childhood to adulthood - a thought process

Which of the following are complaints of Kohlberg's work?

- an over-reliance on dilemmas used to evaluate moral reasoning - too much reliance on Rawl's Theory of Justice - A disregard for human emotion

Rest believes that ethical actions _____

- are related to an individual's level of moral development - result from a combination of cognitive structures and psychological processes

Heinz dealt with the dilemma by _____

- asking the druggist is he could pay for the drug over time - stealing the drug for his wife - asking the drugist to sell the drug for less

Which of the following are included in the "social contract" accountants have?

- commitment to lifelong learning - commitment to serve the interest of the public - commitment to a code of ethics

Kohlberg suggests that individuals may change their decision priorities over time. Select all of the following that may influence moral development

- corporate culture - ethics training - education

Select all of the following steps Uber pledged to take as a result of Susan Fowler's sexual harassment cliams and the Covington report

- create an ethics and culture committee - provide an effective complaint process - train personnel to combat implicit bias

Select the possible negative outcomes of simplifying complex issues to make decision making easier

- failing to identify stakeholders - underestimating risk

Select all the reasons why diversity and inclusion are important issues

- fair and equal treatment creates an ethical corporate culture - global business environment benefits from a diverse workforce

Our views of other people (stereotypes) can cause which of the following negative behaviors?

- favoritism - discriminatory hiring

Select all of the following cultural values that influence one's belief structure

- individualistic society - socialization of children in society - collectivist-oriented society

In stage 3 of Kohlberg's model, a person is influenced by _____

- loyalty in relationships - doing what is in the best interests of others

Select all the following shortcomings that contributed to poor moral behavior at Volkswagen during the "Dieselgate" scandal

- miscalculating the consequences of not fixing the problem - overconfidence in its ability to absorb losses - underestimating risk

The most common social and organizational pressures that can cause well-intentioned people to make poor ethical choices are _____

- obedience to authority - conforming to ethical judgement of peers

In stage 1 of Kohlberg's model, a person's behavior is influenced by _____

- obedience to rules - avoidance of punishment

Sexual harassment often involves _____

- quid pro quo - severe unwelcome behavior

Which factors influenced Betty Vinson's behavior in the WorldCom case?

- rationalization of actions as a one-time event - belief that others had more knowledge of accounting than her - pressure from superiors

Behavioral ethics _____

- requires understanding the consequences of actions - requires explaining moral and immoral behavior in systematic ways - looks at how situational and social forces influence the actual behavior of individuals

In stage 6 of Kohlberg's model, a person is influenced by _____

- rights of others - equality - justice

In stage 1 of Kohlberg's model, behavior is driven by the desire to _____

avoid punishment

Organizational pressures may lead to altering one's beliefs to fit _____

behavior

_____ ethics looks at the way individuals actually behave in moral circumstances

behavioral

In stage 3 of Kohlberg's model, behavior is driven by _____

being fair to others

When a staff accountant is aware of financial fraud, but does not report it because he/she believes his/her supervisor will correct the situation, this is an example of _____

bystander effect

When an individual has the tendency to not report incidents of wrongdoing because he/she believes others will report it, this is commonly called _____

bystander effect

Betty Vinson changed her attitudes and behavior enabling her to reduce what?

cognitive dissonance

In the context of business, the decision one makes can be influenced by _____ culture

corporate

Compared to System 1 thinking, System 2 is more _____

deliberate

Which social and organizational pressure has led to poor ethical judgments in financial reporting?

desire to please authority

Rest's model is built on Kohlberg's work and is based upon behavior related to one's level of moral _____

development

Which concept involves treating individuals with respect and celebrating the rich dimensions of individuality?

diversity

Which concept promotes fairness and justice where everyone receives the same things to enjoy a full, healthy life?

equality

Which concept describes an equal opportunity that fits an individual's personal circumstances?

equity

The perception that "our way" is normal and that other ways are inferior is commonly called _____

ethnocentrism

Cognitive dissonance suggests that individuals have an inner drive to hold attitudes and beliefs in _____

harmony

Which bias describes when an individual has the tendency to view events as more predictable than they really are?

hindsight bias

Which concept involves motivating employees so that they feel a part of the organization?

inclusion

Unlike System 2 thinking, System 1 thinking is more _____

intuitive

Which of the following is not a part of the ethical domain for accountants and auditors?

legal profession

Kohlberg developed the example of Heinz and the Drug to illustrate a _____ dilemma

moral

_____ _____ describes the common failure of people to notice others' unethical behavior when seeing that behavior would harm the observer

moral blindness

Within the cognitive-development paradigm, what is the most influential factor of an individual's moral behavior?

moral judgment

A corporate executive who spends company money on lavish parties and travel later claims he did nothing wrong. The executive's lack of responsibility falls under _____

moral sensitivity

An individual's ability to identify when an ethical situation exists is an example of _____

moral sensitivity

Which bias describes when an auditor may be conservative in his/her risk assessment buy may fail to seek additional information to confirm or update his/her knowledge about internal controls?

overconfidence bias

One's cognitive understanding of an ethical situation influences _____ reasoning

prescriptive

Our ability to spot ethical issues is known as moral _____

sensitivity

An accountant has a(n) _____ _____ to act in accordance with the public interest

social contract

Cognitive dissonance can best be defined as _____

the inconsistency between our preceptions and behavior

Responsibilities to the key constituent groups of the ethical domain for accountants and auditors may conflict

true

True or false: Respondents to the Deloitte Survey entitled "Global Human Capital Trends" believe that diversity creates a competitive advantage

true

In stages 5 and 6, the auditor's behavior should be primarily influenced by _____ ethical principles

universal