Ethics Chapter 1, week 1

Which of the following are true regarding regulation? (Select all that apply) - Regulation must be transparent. - Regulation must occur even when the costs outweigh the benefits. - Regulation must be objectively determined. - Regulation ensures ethical and professional behavior.

- Regulation must be transparent. - Regulation must be objectively determined.

Which of the following are dimensions of trustworthiness? (Select all that apply) - acting with due diligence - being honest - exercising loyalty - being reliable - being competent

- being honest - exercising loyalty - being reliable

Respect requires that we treat others ______. (Check all that apply) Multiple select question. - judgmentally - civilly - courteously - differently

- civilly - courteously

a person who acts responsibly does all of the following (check all that apply) - considers alternative courses of action using ethical principles - obscures the true purpose of actions - accepts the consequences of actions - acts with expediency

- considers alternative courses of action using ethical principles - accepts the consequences of actions

Moral philosophy involves ______. (Check all that apply.) - developing concepts of right and wrong behavior - defending concepts of right and wrong behavior - recommending concepts of right and wrong behavior - determining ethical behavior based on the situation

- developing concepts of right and wrong behavior - defending concepts of right and wrong behavior - recommending concepts of right and wrong behavior

Treating others fairly requires that we treat them (check all that apply) - impartially - equally - unequally - judgmentally

- impartially - equally

in teleology, an act may be considered morally right if it (check all that apply) - ignores self interest - produces more positive than negative consequences - enhances self-interest - ignores the interests of others - produces some desired result

- produces more positive than negative consequences - produces some desired result - enhances self-interest

regaining for the profession to enhance the public interest requires (check all that apply) - being more loyal to employer interests - rebuilding the public trust - better serving client interests - restoring confidence in financial reporting

- rebuilding the public trust - restoring confidence in financial reporting

Characteristics of the moral point of view include ______. (Check all that apply) - situational ethical decision making - always acting in one's own interest - considering the consequences on stakeholders - sometimes acting in the best interests of others

- sometimes acting in the best interests of others - considering the consequences of the stakeholder

The method of ethical reasoning that evaluates actions in terms of harms and benefits is: Act Utilitarianism Rights Theory Virtue Justice

Act Utilitarianism

The Independence Principle in the AICPA Code applies to: All CPAs regardless of professional services All CPAs who render attestation services All accountants and auditors All members of the audit committee

All CPAs who render attestation services

In the Harvard Cheating scandal case, using ethical reasoning who is at fault for the situation? The professor Teaching assistants Students who cheated All of the above

All of the above

Which of the following characteristics is NOT part of behaving with empathy? Being sensitive to the feelings of one's friends Being loyal to one's friends Being understanding of one's friends Being caring about one's friends

Being loyal to one's friends

The term "ethics" is derived from the Greek word meaning and the term morals is derived from the Latin word meaning . (Enter one word per blank)

Blank 1: character Blank 2: custom or customs

When an employee is given a job evaluation, he has a right to expect: Caring and empathy on the part of the evaluator Fair evaluations Evaluations of technical, not personal skills 360 degree evaluations from everyone in the firm

Fair evaluations

In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because: He wanted to improve earnings to increase the share price of company stock He was the sole owner of the company and controlled the board of directors He got approval from the auditors The treatment recommended by the owner for estimating overhead conformed to GAAP

He was the sole owner of the company and controlled the board of directors

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

Integrity

Laws and ethical obligations can be characterized as follows. (Check all that apply) - Moral philosophy informs ethical obligations. - Laws take precedence over ethical standards. - Moral philosophy is based on laws. - Laws create a minimum set of standards.

Laws create a minimum set of standards and Moral philosophy informs ethical obligations

Why do ethical people do the right thing? a. They may be punished as a result of doing something different. b. Their conscience tells them it is the right thing to do. c. Their boss is observing them and will judge their actions.

Their conscience tells them it is the right thing to do.

The National Association of State Boards of Accountancy (NASBA) provides a forum for discussion of the different state board requirements to develop an ideal set of regulations in the ___________ Act

Uniform Accountancy

Greatest good for the greatest number of people is the theory of _________. Utilitarianism Rights Deontology Justice

Utilitarianism

In the Moral Turpitude case, the primary ethical issue in the case is The lack of independence of the audit team Falsification of financial statements An inappropriate relationship between a supervisor and subordinate Violation of the acts discreditable

Violation of the acts discreditable Acts discreditable to the profession page 5

the basic tenet of deontology is a. to maximize net benefits over harms b. a duty to respect rights of others c. enlightened egoism d. a duty to satisfy employer interests

a duty to respect rights of others

Integrity is a. not necessary for accountants b. a fundamental trait of character c. acting in one's self-interest d. loyalty

a fundamental character trait

Integrity is ______. a fundamental trait of character loyalty not necessary for accountants acting in one's self-interest

a fundamental trait of character

The Principles of the AICPA Code of Professional Conduct can best be described as ______. a. descriptive statements b. enforceable standards c. rules of conduct d. aspirational statements

aspirational statements

Virtues have been described as (check all that apply) - attitude - dispositions - loyalty obligations - actions - character traits

attitudes, dispositions, character traits

the common element of ethics and morals is

character

the common elements of ethics and morals is ________

character

obeying laws, being informed, and voting in elections are all important parts of a. citizenship b. loyalty c. fairness d. caring

citizenship

civic virtues and responsibilities about how we should behave as part of our community are included in

citizenship or citizen

The reputation of a CPA is built by performing professional services ______. (Check all that apply) - competently - confidently - deliberately - expediently

competently, confidently

The Golden Rule is best seen as a(n) _____________ principle

consistency

moral virtues

courage and justice

virtuous character traits developed in one's youth should include (check all that apply) - courage and wisdom - fair distribution of benefits and burdens - good habits of character - consequences of actions

courage and wisdom good habits of character

Moral virtues

courage, justice and temperance

Which of the following is not a Principle in the AICPA Code? a. Objectivity b. Integrity c. The Public Interest d. Dependence

dependence

virtue theorists emphasize that the individual should _________ a. take action based on emphasizing net profits b. never place duties over end results c. develop good habits of character d. emphasize rules in decision making

develop good habits of character

Treating people with respect means to treat them with _______ a. intolerance b. dignity c. indifference d. disdain

dignity

When the laws are unclear, an ethical person should act based on ______. a. intuition b. pressures from one's superior c. client demands d. established standards of ethical behavior

established standards of ethical behavior

when laws are unclear, an ethical person should act based on a. established standards of ethical behavior b. client demands c. intuition d. pressures from one's superior

established standards of ethical behavior

_______ decision making centers on how we act when no one is looking

ethical

In accounting, the values of the profession are embedded in its codes of __________ that guide the actions of accountants and auditors in meeting their professional responsibilities.

ethics

Rules provided by an external source are referred to as ________ whereas an individual's own principles regarding right and wrong are referred to as ___________

ethics, morals

the underlying attributes of ancient greek philosophy include (check all that apply) - excellence - indifference - loyalty - happiness

excellence, happiness

Which of the following help mitigate the risks presented by workplace social networking? (Select all that apply) - Formal social networking policies - Company social network pages - Employer commitment to an ethical culture - Training on the use of social networks

formal social networking policies, employer commitment to an ethical culture, training on the use of social networks

Accounting professionals should take whatever steps are necessary to prevent ________ in financial statements

fraud

the basic ethic that guides virtually all of the world's great religions is the

golden rule

the Josephson Institute of Ethics believes that caring is the a. only ethical value that should drive relationships with others b. essence of honesty c. heart of ethics and ethical decision making d. wrong value to drive behavior

heart of ethics and ethical decision making

Which of the following are included in the IMA's overarching ethical principles? (Select all that apply) - responsibility - fairness -confidentiality - honesty - integrity

honesty, fairness, responsibility

Which of the following is not a characteristic of responsible behavior? a. reflection b. impracticality c. diligence d. accountability

impracticality : Acting impractically means to act without thoughtfulness.

which of the following is not a cardinal virtue? a. temperance b. courage c. insensitivity d. wisdom

insensitivity

A fundamental trait of character, which forms the basis of accounting, is

integrity

A fundamental trait of character, which forms the basis of accounting, is ____________

integrity

What was the focus of efforts to rebuild the public trust in the aftermath of scandals at Enron and WorldCom? a. Integrity b. Loyalty c. Expand future professional activities d. Client needs

integrity

deontology is focused on the _____ of a particular behavior a. outcomes b. intentions c. consequences

intentions

Virtue ethics emphasizes development of good habits of character. What should be the greatest reward of practicing good habits of character, according to MacIntyre? Loyalty from others Authority of rules External rewards Internal rewards

internal rewards

giving each person what he/she deserves is a way to describe

justice

Which of the following virtues are characteristics of acting with care? (Check all that apply) - Deceitfulness - Kindness - Benevolence - Selfishness - Altruism

kindness, benevolence, altruism

which of the following should not be a basis for fair decisions? a. performance evaluations b. whistleblowing c. resource allocations d. loyalty

loyalty

In considering whether to take action to delay the recognition of revenue until fiscal year ended September 30, 2019, Madison should be most concerned with her: a. organization's public image. b. relationship with Kyle. c. loyalty toward investors and creditors. d. personal reputation.

loyalty towards creditors and investors

The view that moral or ethical statements, which vary from person to person, are all equally valid and no one's opinion of right and wrong is actually better than any others is best described as ______ a. moral egoism b. standards of behavior c. moral relativism

moral relativism

Which of the following emphasizes the widely-held communal or societal norms about right and wrong? Relativism Ethics Morals Egoism

morals

which of the following emphasizes the widely-held communal or societal norms about right and wrong? a. egoism b. relativism c. ethics d. morals

morals

moral relativism is a view where morals depend on

one's culture

according to the six pillars of character, the primary motivation for ethical action is _________ a. one's inner sense of right and wrong b. to avoid punishment c. to act as if no one is looking d. to avoid having a guilty conscience

one's inner sense of right and wrong

identify the traits of integrity (check all that apply) - principled - high morals - client-centered - selfish

principled

Honesty, Fairness, and Objectivity are ethical __________ of the Institute of Management Accountants.

principles

Virtues

qualities of life make it admirable

virtues

qualities of life that make it admirable

which of the following is not a virtue? a. truthfulness b. rationalization c. integrity d. kindness

rationalization

the ancient greeks believed that what two things contributed to the choice of action? - thought - laws - rules - reason

reason and thought

in decision making, an individual should a. rely on his/her moral principles as a guide b. rely strictly on rules and laws c. put his/her self-interests before the public interests

rely on his/her moral principles as a guide

Regardless of their circumstances in life, all people should be treated with

respect or dignity

which of the following issue is not a part of justice? a. Fairness b. Equality of treatment c. Rights d. Self-interest

self-interest

Students often recognize cheating as an undesirable behavior but justify and rationalize cheating under certain circumstances, reflecting a(n)

situation ethic or situational

On rare occasions, laws might be put aside for a different kind of behavior when a. self-interests dictate b. sound ethical reasons exist c. client demands require it d. one's job is at stake

sound ethical reasons exists

Which of the following steps should Madison take to ensure the difference of opinion with Kyle is resolved? (Check all that apply) - Contact the media to increase publicity - Take his concerns to a higher level of management - Blow the whistle on the company and provide documentation for concerns - Seek outside legal advice before blowing the whistle

take his concerns to a higher level of management and seek outside legal advice before blowing the whistle

__________ evaluate the moral worth of behavior by looking at its consequences.

teleologists

The expression "Treat others the way you would want others to treat you" describes ______. Multiple choice question. CPA ethical standards the Golden Rule honesty integrity

the Golden Rule

in being good citizens, accountants and auditors should strive to enhance the reputation of ______. a. their CPA firm b. the Internal Revenue Service c. their clients d. the accounting profession

the accounting profession

The expression "Treat others the way you would want others to treat you" describes ______. a. integrity b. honesty c. CPA ethical standards d. the golden rule

the golden rule

When the rules are unclear, ethical decision making may require a person to take an action that may not be in his/her best interest. This is best described as ______. a. the concept of egoism b. the concept of relativism c. the moral point of view d. the utilitarianism point of view

the moral point of view

An effort was made to enhance confidence and public trust in financial reporting following ______. a. the bursting of the real-estate bubble b. the emergence of the global market c. the scandals at Enron and Worldcom d. the Great Depression

the scandals at Enron and WorldCom

T/F: being ethical is not the same as following the law

true

T/F: ethical behavior builds reputational capital

true

being honest and acting with integrity are two dimensions of

trustworthiness

An individual's beliefs that guide or motivate the individual to act in a certain way are referred to as

values

Intellectual virtue

wisdom

instrumental virtue

wisdom

Which of the following procedures help mitigate the inappropriate use of social networking at work? (Select all that apply) - Culture that encourages posting complaints online - Codes of ethics that include proper usage of social networking sites - Formal social networking policies - Consequences for those that violate company policies

- Codes of ethics that include proper usage of social networking sites - Formal social networking policies - Consequences for those that violate company policies

Which of the following are aspects of justice theory? - Reference to one's feelings or interests - Distribution of benefits and burdens - Giving each person what he or she deserves - Utilitarian calculation

- Distribution of benefits and burdens - Giving each person what he or she deserves

Which of the following are two important teleological philosophies that guide decision making in business decisions? - Egoism - Citizenship - Utilitarianism - Trustworthiness - Reputation

- Egoism - Utilitarianism

Ethics or moral philosophy addresses which of the following questions? (Check all that apply.) - How should I live my life? - Which moral values of the ruling party align with my life goals? - What sort of person should I strive to be? - How should I plan my career as to achieve the greatest wealth? - What values are important?

- How should I live my life? - What sort of person should I strive to be? - What values are important?

Sally is the only student from a foreign country in an Auditing class. On the day of the midterm exam, Sally asks the teacher whether she could use a dictionary to translate English words to her native tongue so she can better understand the questions. What do you think the instructor should do if she follows the ethical principle of justice? Allow Sally to use the dictionary since she is at a disadvantage Not allow Sally to use the dictionary because she should know enough English to get by Allow the other students to bring in some tool to give them an advantage None of the above

Allow Sally to use the dictionary since she is at a disadvantage

Which of the following elements does NOT make up an integral part of what is meant by "ethics"? Knowing the difference between right and wrong Always following the law Accepted standards of behavior The moral point of view

Always following the law

The biggest problem in applying virtue theory to decision making is: It relies on moral absolutes in decision making Conflicts between virtues may make decision making more difficult It can be difficult to determine virtues to distinguish equals from unequal claims in decision making It can be difficult to identify virtues

Conflicts between virtues may make decision making more difficult

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? Justice Utilitarianism Deontology Egoism

Egoism

Individuals that ignore the moral point of view and take advantage of others in an effort to meet their own short-term objectives can be classified as: Egoists Relativists Utilitarians Deontologists

Egoists

the primary ethical obligation of an accounting professional when financial wrongdoing exists is to ___________ a. do what is in the client's best interest b. take the necessary steps to correct the matter c. remain silent about the wrongdoing d. rationalize not acting

Take the necessary steps to correct the matter