ethics chapter 3

Select all that apply The survey on occupational fraud and abuse found Blank______. (Check all that apply.) -89% of the reported cases of fraud were due to misappropriation of assets -that frauds reported lasted a median of 16 months before being detected -85% of the reported cases of fraud were due to financial statement fraud -financial statement fraud schemes made up 9% of the frauds -misappropriation of assets caused the greatest median loss at $1 million

-89% of the reported cases of fraud were due to misappropriation of assets -that frauds reported lasted a median of 16 months before being detected -financial statement fraud schemes made up 9% of the frauds

Select all that apply Which of the following individuals would be considered independent directors? -A person with no direct relationship to the company -A person with no indirect relationship to the company -Partner of the company -Shareholder of the company -A person with an indirect material relationship to the company

-A person with no direct relationship to the company -A person with no indirect relationship to the company

Select all that apply Which of the following actions would be protected under the National Labor Relations Act? (Select all that apply.) -An employee who complains that her personal performance evaluation is unfair -An employee who complains on behalf of coworkers about safety issues -Concerted efforts to improve conditions at work conducted on social media -Posting proprietary company information on social media

-An employee who complains on behalf of coworkers about safety issues -Concerted efforts to improve conditions at work conducted on social media

Select all that apply The size of executive pay packages are of concern because Blank______. (Check all that apply.) -CEOs in the United States are paid many times more than their counterparts in other countries -pay packages are excessive in relation to average worker salaries -CEOs in the United States are paid less than CEOs in Switzerland and Japan -they are too large for effective oversight

-CEOs in the United States are paid many times more than their counterparts in other countries -pay packages are excessive in relation to average worker salaries

Select all that apply The objectives of internal control include which of the following? (Check all that apply.) -Compliance with applicable laws and regulations -Compliance with SEC regulations -Management doesn't override internal controls -Reliability of financial reporting -Effectiveness and efficiency of operations

-Compliance with applicable laws and regulations -Reliability of financial reporting -Effectiveness and efficiency of operations

Select all that apply The framework of conscious capitalism includes which of the following guiding principles (select all that apply): -Conscious leadership -Higher purpose -Risk Analysis -Stakeholder orientation

-Conscious leadership -Higher purpose -Stakeholder orientation

Select all that apply Which of the following are important components of tone at the top? (Select all that apply.) -Rarely modeling company values -Enforcing disciplinary actions -Communicating the importance of compliance to employees

-Enforcing disciplinary actions -Communicating the importance of compliance to employees

Select all that apply Which of the following increased from 2011 to 2013 in the Views of Employees on Ethics in the Workplace Survey? (Select all that apply.) -Whistleblowing retaliation -Observed misconduct -Ethics training programs -Use of ethical conduct as a performance evaluation measure -Pressure to compromise ethical standards

-Ethics training programs -Use of ethical conduct as a performance evaluation measure

Select all that apply In the case of the Ford Pinto, Blank______. (Select all that apply.) -Ford employed a stakeholder orientation and adequately considered the interests of the stakeholders -Ford complied with all the laws and safety issues -Ford relied completely on utilitarian thinking -Ford relied on the universality perspective of rights theory

-Ford complied with all the laws and safety issues -Ford relied completely on utilitarian thinking

Select all that apply The Equifax data breach involved which of the following? (Select all that apply.) -Inadequate disclosures related to its cyber security -Manipulating earnings to increase stock price -Failing to protect consumer information it sells to banks and other organizations

-Inadequate disclosures related to its cyber security -Failing to protect consumer information it sells to banks and other organizations

Select all that apply Sarbanes Oxley regulation in the United States includes which of the following? (Check all that apply.) -Internal auditors must review corporate governance guidelines to ensure they have been followed. -Management must certify the internal controls over financial reporting. -Protection for executives in fraud cases -Protection for whistleblowers -Auditors must attest to and report on management's certification on internal controls.

-Management must certify the internal controls over financial reporting. -Protection for whistleblowers -Auditors must attest to and report on management's certification on internal controls.

Select all that apply Which of the following are potential concerns of the whistleblowing program? (Select all that apply.) -The whistleblowing program gives incentive to employees to report fraud and protects them from retaliation. -Permitting compliance officers to become whistleblowers based on the passage of time may dissolve trust in compliance officials. -The whistleblowing program protects the identity of individuals who report fraud, and this may be necessary information. -A self-interested person may reveal company information with inadequate safeguards as to the quality of the information.

-Permitting compliance officers to become whistleblowers based on the passage of time may dissolve trust in compliance officials. -A self-interested person may reveal company information with inadequate safeguards as to the quality of the information.

Select all that apply Why have there been few cases of false certification of financial statements under SOX Section 302? (Check all that apply.) -Prosecutors prefer to charge executives with other crimes. -It is very difficult to prove executives knowingly signed a false certification. -Executives often plead guilty to avoid prosecution.

-Prosecutors prefer to charge executives with other crimes. -It is very difficult to prove executives knowingly signed a false certification.

Select all that apply The COSO report identifies which of the following components of the internal control framework? (Check all that apply.) -Fraud detection -Reporting to the SEC -Risk assessment -Monitoring -The control environment -Control activities

-Risk assessment -Monitoring -The control environment -Control activities

Select all that apply Concerns over internal control procedures that may have contributed to the Equifax data breach include which of the following? (Select all that apply.) -The CEO did not adequately consider internal controls when certifying the internal controls. -The external auditors did not adequately consider problems with their information systems. -The company had an adequate code of ethics and reporting procedures.

-The CEO did not adequately consider internal controls when certifying the internal controls. -The external auditors did not adequately consider problems with their information systems.

Select all that apply Which of the following conclusions were drawn from the results of the ACFE occupational fraud survey? (Check all that apply.) -The amount of fraud losses correlate with higher levels of authority. -Almost none of the victim organizations recovered any losses they suffered due to the fraud. -A tip is the most likely way for occupational fraud to be detected. -Anti-fraud controls correlate to significant decreases in occupational fraud. -Anti-fraud controls are the most likely way that occupational fraud is detected.

-The amount of fraud losses correlate with higher levels of authority. -A tip is the most likely way for occupational fraud to be detected. -Anti-fraud controls correlate to significant decreases in occupational fraud.

Select all that apply Which of the following are criteria DeGeorge identifies for when whistleblowing is morally acceptable? -The firm's actions will do considerable harm to others. -Documented evidence is unnecessary if whistleblower has another employee to corroborate story. -The employee has reported to his/her supervisor and action was taken to remedy fraudulent activity. -The employee must believe that going public is worth the risk to oneself. -Documented evidence must exist that certifies the individual's view is correct.

-The firm's actions will do considerable harm to others. -The employee must believe that going public is worth the risk to oneself. -Documented evidence must exist that certifies the individual's view is correct.

Select all that apply Fear and silence can stifle whistleblowing in a company because of Blank______. (Check all that apply.) -a kill the messenger syndrome -fear of reprisals -a culture that retaliates against whistleblowers -clear reporting channels for matters of concern -the failure to meet financial estimates

-a kill the messenger syndrome -fear of reprisals -a culture that retaliates against whistleblowers

Select all that apply The Dodd-Frank whistleblower provisions contain Blank______. (Check all that apply.) -anti-retaliatory protections for whistleblowers -financial incentives for blowing the whistle -a requirement that the SEC be informed before reporting wrongdoing to compliance officers -an exclusion from whistleblowing awards for internal accountants as it is their legal duty to report violations

-anti-retaliatory protections for whistleblowers financial incentives for blowing the whistle -an exclusion from whistleblowing awards for internal ---accountants as it is their legal duty to report violations

Select all that apply Executive compensation packages can be used to alleviate the agency problem because Blank______. (Check all that apply.) -compensation packages can be used to link executive pay to performance of the company's shares -compensation packages can be used to link executive pay to company performance -stock option plans may be tied to executive wealth -boards of directors do not have to monitor managerial performance -stock option plans can be used to motivate executive performance in the best interests of the company

-compensation packages can be used to link executive pay to performance of the company's shares -compensation packages can be used to link executive pay to company performance -stock option plans can be used to motivate executive performance in the best interests of the company

Select all that apply Under Sarbanes-Oxley, the audit committee is expected to Blank______. (Check all that apply.) -create formal procedures for processing hotline claims -establish and implement internal controls -establish an anonymous method for employees to submit concerns -establish an internal audit function

-create formal procedures for processing hotline claims -establish an anonymous method for employees to submit concerns

Select all that apply Internal compliance officers and internal auditors can qualify for whistleblower awards if Blank______. (Check all that apply.) -disclosure to the SEC is needed to prevent substantial injury to the entity or its investors -disclosure to the SEC is needed to circumvent the entity's compliance process -the whistleblower reasonably believes the entity is impeding investigation of the misconduct -the whistleblower has first reported the violation internally and at least 120 days have passed -the whistleblower immediately reports the violation to the SEC

-disclosure to the SEC is needed to prevent substantial injury to the entity or its investors -the whistleblower reasonably believes the entity is impeding investigation of the misconduct -the whistleblower has first reported the violation internally and at least 120 days have passed

Select all that apply Corporate social responsibility involves Blank______. (Check all that apply.) -ethical expectations that society has for business -placing profit above all else -responsibility to prevent harm

-ethical expectations that society has for business -responsibility to prevent harm

Select all that apply Internal controls are designed to Blank______. (Check all that apply.) -help prevent and detect materially false and misleading financial reports -help to prevent asset misappropriations -provide reasonable assurance to the board of directors regarding achievement of an entity's objectives -help prevent an insufficient number of disclosures in the financial statements -help prevent and detect material errors in the financial statements

-help prevent and detect materially false and misleading financial reports -help to prevent asset misappropriations -provide reasonable assurance to the board of directors regarding achievement of an entity's objectives -help prevent an insufficient number of disclosures in the financial statements

Select all that apply An outside or nonexecutive director is a member of a company's board of directors -holds the interests of the company in higher regard than executive directors -is part of the executive team -is involved in policy making and planning exercises

-holds the interests of the company in higher regard than executive directors -is involved in policy making and planning exercises

Select all that apply An outside or nonexecutive director is a member of a company's board of directors -is involved in policy making and planning exercises -holds the interests of the company in higher regard than executive directors -is part of the executive team

-is involved in policy making and planning exercises -holds the interests of the company in higher regard than executive directors

Select all that apply Unethical behavior and financial collapse sometimes go hand and hand because of Blank______. (Check all that apply.) rogue employee behavior loyalty to the boss overly pessimistic financial projections an unrealistic emphasis on meeting financial projections intense pressure to maintain the numbers

-loyalty to the boss -an unrealistic emphasis on meeting financial projections -intense pressure to maintain the numbers

Select all that apply Executive pay packages create concern when Blank______. (Check all that apply.) -management manipulates earnings to drive up company stock price -CEOs work harder for the interest of various stakeholders -incentives are consistent with company goals -significant disparity in executive pay raises issues of equity

-management manipulates earnings to drive up company stock price -significant disparity in executive pay raises issues of equity

Select all that apply There are several possible reasons why there have not been more prosecutions under Sections 302 and 906 for false certifications including (check all that apply) -CEOs are no longer liable for security law violations -multiple layers of subcertification require lower-level officials to attest to the accuracy of financial reports it is difficult to show that the CEO or CFO knowingly signed a false certification

-multiple layers of subcertification require lower-level officials to attest to the accuracy of financial reports -it is difficult to show that the CEO or CFO knowingly signed a false certification

Select all that apply A conflict of interests can occur when Blank______. -personal judgments are in agreement with those that trust you -personal interests do not match the interests of those that trust you -individuals make judgment calls on behalf of others

-personal interests do not match the interests of those that trust you -individuals make judgment calls on behalf of others

Select all that apply In the economic model of CSR, business exists to Blank______. -decrease value for shareholders -produce goods and services for society -create jobs

-produce goods and services for society -create jobs

Select all that apply The purpose of the control environment is to Blank______. (Check all that apply.) -prevent and detect fraud -identify how risk might affect the control environment -provide discipline and structure for internal controls -influence the control consciousness of employees -set the ethical tone of the organization

-provide discipline and structure for internal controls -influence the control consciousness of employees -set the ethical tone of the organization

Select all that apply Dennis Kozlowski, the CEO of Tyco, selected employees based on Blank______. (Select all that apply.) -reluctance to challenge authority -possible conflicts of interest -lack of experience -proven moral background -proven experience

-reluctance to challenge authority -possible conflicts of interest -lack of experience

Select all that apply According to the National Business Ethics Survey, the two most common observations of employees about ethics in their organizations are Blank______. (Check all that apply.) -reported observed misconduct -experienced retaliation after whistleblowing -pressure to compromise ethical standards -observed misconduct -weak ethical culture

-reported observed misconduct -observed misconduct

Select all that apply An ethical workplace culture is influenced by Blank______. (Check all that apply.) -earnings projections -strong internal controls -having an ethical code of conduct -whistleblowing policies -government regulation

-strong internal controls -having an ethical code of conduct -whistleblowing policies

Select all that apply The agency problem arises because Blank______. (Check all that apply.) -there is a separation of ownership and control -the agents are not clearly identified to management -managers may have motivations beyond increasing shareholder wealth -shareholders run the business in a way that conflicts with manager needs -managers may run the business to maximize executive compensation -managers may make decisions in an egoist way

-there is a separation of ownership and control -managers may have motivations beyond increasing shareholder wealth -managers may run the business to maximize executive compensation -managers may make decisions in an egoist way

How many independent members of the audit committee is the minimum required to satisfy requirements to list a stock on the Nasdaq or New York Stock Exchange?

3

According to the ACFE Global Survey, the typical organization loses Blank______.

5% of its revenue to fraud each year

Which of the following is the most common method of detecting occupational fraud?

A tip

Which of the following is not a mechanism of corporate governance?

AICPA Code of Conduct

Select all that apply Which of the following encourage ethical behavior in the workplace? (Select all that apply.) -An ethical climate in the organization -Support for ethical behavior from top management -High organizational ethics, high individual ethics -A corporate culture that is inconsistent with individual values and beliefs

An ethical climate in the organization Support for ethical behavior from top management

What was the primary accounting manipulation in the Anthony Menendex v. Halliburton case?

Bill and hold transactions

Which of the following procedures is required under SOX Section 302 to protect the public against fraudulent financial reporting?

Certification of financial statements by the CEO and CFO

Which of the following is the least common method of detecting occupational fraud?

Confession

Select all that apply Which revenue recognition GAAP violations did Anthony Menendez identify at Halliburton? (Choose all that apply.) The seller must not maintain any performance obligations. Goods must be ready for shipment. Delivery must be for a fixed date. The risk of ownership did not pass to the buyer.

Delivery must be for a fixed date. The risk of ownership did not pass to the buyer.

Which of the following represents pressures to maintain the numbers as a sign that an organization has collapsed ethically?

Directors have consulting contracts with the company they are directors for.

Which of the following is not a goal of internal controls?

Ensure that fraud does not occur

Which of the following is not a type of fraud?

Errors in financial statements

In the case of the Ford Pinto, the company applied which principle?

Ethical legalism

Which of the following is the most commonly occurring anti-fraud control according to the ACFE Global Fraud Survey?

External audit

True or false: External auditors cannot qualify for a whistleblower award when reporting wrongdoing about their firm unless the information leads to a successful enforcement action against the client.

False

Select all that apply Examples of financial statement fraud include which of the following? (Check all that apply.) -Fictitious revenue -Asset misappropriation -Recording accrued expenses -Artificially inflated assets -Underreported expenses

Fictitious revenue Artificially inflated assets Underreported expenses

Which of the following is another way of saying that a moral meltdown has occurred at a company that has experienced an ethical collapse?

Good people in companies do really dumb things.

A variety of factors discourage the reporting of fraud. Which of the following is not a factor that discourages the reporting of fraud?

Good tone at the top

Select all that apply Which of the following are requirements expected of a code of ethics for senior financial officers? (Select all that apply.) -Untimely reporting -Honest and ethical conduct -Full and fair disclosure -Inaccurate disclosures

Honest and ethical conduct Full and fair disclosure

At what point is the auditor required to report suspected fraud directly to the SEC?

If the auditor does not receive communication from the client to the SEC within one business day of the audit report to the board of directors

The framework of COSO's Enterprise Risk Management can best be characterized as

Incorporate enhanced corporate governance into internal control principles

Select all that apply Identify the elements of the corporate culture. (Check all that apply.) Internal auditors Audit committee External auditors CEO and CFO

Internal auditors Audit committee CEO and CFO

From an ethical perspective, what is the most controversial provision of the Dodd-Frank Act?

It incentivizes whistleblowing.

Which author suggests that the social responsibility of business is to increase profits?

Milton Friedman

Select all that apply In the context of whistleblowing, by reporting through the internal compliance process, which of the following are possible outcomes? (Select all that apply.) Others in the organization may become potential whistleblowers. Employees are protected from illegal acts. Others in the organization become informed of the facts.

Others in the organization may become potential whistleblowers. Others in the organization become informed of the facts.

Select all that apply Please select all the factors that may discourage the reporting of fraud according to a report by the Anti-Fraud Collaboration: -Poor tone at the top -Mistrust -Management wants to hear about problems -Perception that wrongdoing will be addressed if misconduct is reported

Poor tone at the top Mistrust

Select all that apply The Triple Bottom Line focuses on (select all that apply): Profit Responsibility People Planet

Profit People Planet

Select all that apply Which of the following are important components of tone at the top? (Select all that apply.) -Reminding employees of a non-retaliation policy -Modeling company values -Rarely enforcing the code of conduct

Reminding employees of a non-retaliation policy Modeling company values

Which of the following is the least commonly occurring anti-fraud control according to the ACFE Global Fraud Survey?

Rewards for whistleblowers

Which section of Sarbanes-Oxley requires the inclusion of a statement that management accepts responsibility for maintaining adequate internal control over financial reporting?

Section 404

Which section of Sarbanes-Oxley requires a code of ethics for senior financial officers?

Section 406

Which section of Sarbanes-Oxley prohibits retaliation for any lawful act done by the employee?

Section 806

Select all that apply Which of the following factors appear in every case of financial statement fraud? (Select all that apply.) Situational pressure Perceived opportunity Aversion to internal control Rationalization Desperation

Situational pressure Perceived opportunity Rationalization

Which concept describes the ability to maintain various systems and processes in an environmental, social, and economic ways?

Sustainability

Which act protects the rights of employees to act together in a concerted manner to address conditions at work, with or without a union?

The National Labor Relations Act

Select all that apply The COSO report describes internal controls as a process that is affected by which of the following? (Check all that apply.) The entity's internal auditors The entity's top management The external auditors The entity's board of directors The SEC

The entity's internal auditors The entity's top management The entity's board of directors

Select all that apply Under which situations may a whistleblower take confidential company documents? (Select all that apply.) Any confidential company documents may be taken by a whistleblower. To mitigate the possibility that documents involving a fraud may be destroyed To document evidence of a fraud

To mitigate the possibility that documents involving a fraud may be destroyed To document evidence of a fraud

True or false: A corporate governance system includes mechanisms to ensure that management operates the organization in the interests of shareholders.

True

True or false: A whistleblower is permitted to take confidential company documents as evidence of wrongdoing if they believe there is a likelihood that the documents may be destroyed to cover up the fraud.

True

True or false: An SEC rule implementing the Dodd-Frank whistleblower reward program bars companies from enforcing confidentiality agreements.

True

True or false: Internal control systems cannot guarantee all fraud will be detected.

True

True or false: Whistleblowing through the disclosure of wrongdoing to parties can be characterized as either internal or external whistleblowing.

True

Select all that apply Examples of financial statement fraud include which of the following? (Check all that apply.) Underreported expenses Fictitious revenue Recording accrued expenses Artificially inflated assets Asset misappropriation

Underreported expenses Fictitious revenue Artificially inflated assets

Fraud can be defined as

a deliberate misrepresentation to gain an advantage over another party.

The underlying motivation for fraud is to _____

achieve a gain over another party that would not otherwise exist

Conflicts of interest between managers and principals are known as the _______ problem.

agency

The stakeholder perspective emphasizes the obligations of management to

all parties impacted by corporate decisions in a significant way.

Financial statement fraud schemes occur because

an employee causes a misstatement of material information in the financial reports

Select all that apply Enron and WorldCom both failed as going concerns a result of Blank______. (Check all that apply.) an excessive emphasis on financial results at all costs failing to hire competent management pressure to maintain the numbers failing to meet earnings estimates a tension between ethics and the bottom line

an excessive emphasis on financial results at all costs pressure to maintain the numbers a tension between ethics and the bottom line

Under the anti-retaliation provisions, an employer is prohibited from discharging, harassing or otherwise discriminating against a whistleblower for which disclosures (check all that apply):

assisting in an SEC investigation

According to the Treadway Commission Report, internal auditor concerns about the financial statements should be reported directly to the Blank______.

audit committee

The SEC protects whistleblowers by Blank______.

barring companies from threatening to enforce a confidentiality agreement

Sarbanes-Oxley requires the audit committee Blank______.

be completely independent of management

Directing the business and affairs of the corporation is the ultimate responsibility of the Blank______.

board of directors

Ethical expectations that society has for business can be referred to as Blank______.

corporate social responsibility

A _________ ________ system includes mechanisms to ensure that the agent (management) runs the firm for the benefit of one or more principals (shareholders, creditors, and other stakeholders).

corporate; governance

Whistleblowing in accounting is a duty when it is motivated by Blank______

determination to protect the public interest

To establish an ethical corporate culture, organizations do all of the following except

develop an ethics training program.

The requirement that a director or officer acts in the best interest of the corporation while exercising good faith is known as the standard of _________ _______

due; care

Directors and officers putting their personal interests after the welfare of the organization is an example of Blank______.

duty of loyalty

Faithfulness to an individual's obligations and duties relates to Blank______.

duty of loyalty

In the accounting scandals of the early 2000s, the audit committees Blank______.

either did not know about the fraud or chose to look the other way

Jennings points to seven common signs of _______ ______ in a company. (Enter one word per blank.)

ethical collapse

One of the biggest issues that corporate boards of directors face is, ________ _______ and it has been found that most boards spend more time on this than ensuring the integrity of financial reporting.

executive; compensation

In Miceli and Near's research, the primary reason given by whistleblowers for not coming forward is Blank______.

fear of retaliation

All of the following are reasons DeGeorge suggests whistleblowing is a moral act except:

going public will not create the necessary change to protect the public

Select all that apply Near and Miceli link whistleblowing to acts that are Blank______. (Check all that apply.) -taken by external auditors -illegitimate -illegal -immoral -outside the control of employers

illegitimate illegal immoral

The ethics of whistleblowing have been questioned because Dodd-Frank ______ the practice.

incentivizes

Having the procedures and structures in place to minimize or avoid conflicts of interest is another way of describing Blank______.

independence

Nonexecutive directors are

independent directors that do not hold a managerial position

The effectiveness of internal control systems should be ensured by the ______ auditors.

internal

Select all that apply The disclosure of wrongdoing by a client will not violate the CPA's confidentiality obligation when Blank______. (Check all that apply.) the management of the CPA firm has first been informed the CPA does so to gain a whistleblower's award it is necessary to comply with the provisions of Dodd-Frank it is necessary to comply with SEC regulations

it is necessary to comply with the provisions of Dodd-Frank it is necessary to comply with SEC regulations

Internal compliance officers and internal auditors generally cannot receive whistleblower awards under Dodd-Frank because Blank______.

it is part of their job responsibilities to report suspicion of illegal acts to management

When a company retaliates against an employee for bringing bad news to the attention of top management, a ________ the ______ syndrome exists.

kill; messenger

Select all that apply Employees given the trappings of success who are then reluctant to speak up out of fear of losing their lavish lifestyles most likely do so because of Blank______. (Check all that apply.) -loyalty to the boss -pressure to maintain the numbers -fear of reprisals -innovation like no other company -weak board of directors

loyalty to the boss fear of reprisals

The Dodd-Frank Act contains ______ incentives for whistleblowers.

monetary

The audit committee should Blank______.

monitor the integrity of the financial statements

According to the 2021 Global Business Ethics Survey, what percentage of employees are likely to report misconduct they saw in the workplace?

more than 75%

According to the 2021 Global Business Ethics Survey, what percentage of employees who reported misconduct said they suffered some form of retaliation?

more than 75%

KPMG's Integrity Survey 2013 indicates all of the following except

more than half of employees reported that what they observed could potentially cause a significant loss of public trust if discovered.

Application of the COSO framework to the Enron and WorldCom frauds may have strengthened internal controls that failed because Blank______.

of management override

A common ethical problem where there is an unrealistic expectation to meet expected results and the ends justifies the means can be best described as

pressure to maintain the numbers.

All of the following are prohibited actions under Sarbanes-Oxley when an employee reports lawful concerns, except Blank______.

promotion

An accountant who believes fraud is in the best interest of the company and believes everything will go back to normal after the fraud occurs is subject to Blank______.

rationalization

Select all that apply Overstatement of revenue occurs by Blank______. (Check all that apply.) -recording sales of product on consignment -recording revenues when acting as a middle man -recording gross revenue, rather than net revenue -recording revenues when services are provided

recording sales of product on consignment recording revenues when acting as a middle man recording gross revenue, rather than net revenue

A conflict of interest may occur when a person holds a position of trust that Blank______.

requires judgment on behalf of others

Select all that apply Revenues can be overstated by recording Blank______. (Check all that apply.) -current sales in future periods -revenues as earned -revenues in the proper period -revenues too soon -bogus revenues

revenues too soon bogus revenues

Select all that apply Internal auditors Blank______. (Select all that apply.) -review effectiveness of the audit committee -oversee risk management processes -conduct audits independent of management -review effectiveness of whistleblower provisions

review effectiveness of the audit committee oversee risk management processes review effectiveness of whistleblower provisions

Trust in business is important because

stakeholders need to feel confident that relationships with organizations will be consistent and reliable.

The seven signs of a pending ethical collapse include all but

strong board of directors.

Section 302 of Sarbanes-Oxley Act requires

that principal executive and financial officers certify that they have reviewed the findings of annual or quarterly reports and find the statements within to be accurate and free of any materials errors

The U.S. Supreme Court issued an opinion in the Digital Realty Trust case that whistleblowers are not protected against retaliation unless they report concerns to Blank______.

the SEC

Timely and accurate disclosure on all material matters, including the financial situation and corporate governance, are required by Blank______.

transparency

The intent of external auditors qualifying for whistleblower awards is to ensure Blank______.

wrongdoing by the accounting firm is reported