Business Ethics Final Exam

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

Section 302 of SOX --> corporate responsibility for financial reports

- Requirement of CEO/CFO certification of financial statements (302) The company CEO and CFO must sign a statement indicating: 1. They have read the financial statements. 2. They are not aware of any false or misleading statements (or any key omitted disclosures). 3. They believe that the financial statements present an accurate picture of the company's financial condition. requires CEOs and CFOs to certify the accuracy of the quarterly and annual financial statements

Step 8

Always respond in a Biblical Christ like manner - don't be a stumbling block to the authority

Step 5

Emulate christ in your attitude - your reactions will reveal our motives, don't let your expectations determine our attitude

FOEG

Fulfill missions of one company Obey the law Ethical in all situations Good Citizen

Step 4

Gather the facts objectively - Must provide accurate information

What has God given us according to II Timothy 1:7? What has He not given us?

He has not given us a spirit of fear and timidity, but of power, love, and self-control. God gave us a spirit of power, love, and self control not a spirit of fear

Affective Appeal

PSP GEC SAB

Step 1

Prepared to make an appeal - I must be in a right standing with the organization or person

Three Prongs of the Fraud Triangle (PRO)

Pressure, Rationalization, Opportunity

Step 3

Provide an opportunity for sufficient consideration - I must appeal in a timely manner

PCAOB

Public Company Accounting Oversight Board

Step 2

Search your heart - I must have the right motives for the benefits and protection of others

CEO and CFO Expectations from SOX

Section 302, requires CEOs and CFOs to certify the accuracy of the quarterly and annual financial statements

Step 7

Seek wise counsel - avoid the ungodly when seeking counsel

SIG

Surrendering the right to get even Interpreting the person who wronged us in a larger format and new perspective Gradual desire for the welfare of the person who did the wrongdoing

List and describe the Four Main responsibilities of Leadership according to the text - pages 100 and 101. (FOEG)

The four main responsibilities of leadership according to the book is to fulfill the missions of one's company, to obey the law, be ethical in all situations, and be a good citizen. The first responsibility is to fulfill the missions of one's company. In order to do this, companies must first understand their mission whether that's to generate profits and long term stockholder value, help others, educate, etc. Leaders are expected to follow through and uphold this mission and strive to meet those expectations. The second responsibility of leadership is to obey the law. Leaders must obey the laws and rules set forth in order to set a good example of justice, decency, and righteousness. The third responsibility is to be ethical in all situations. Leaders must strive to be honest, have integrity, wise, etc. Good leaders must be ethical and accountable in all ways. The fourth responsibility is to be a good citizen. Leaders are expected to set a good example and be role models and being a good citizen goes along with that.

Section 401 of SOX

financial statements are open and accurate

Preventive control

is physical control over assets which includes physically checking (and double-checking) things such as locks on doors

Section 404 of SOX

management assessment of internal controls requires that managers document and assess the effectiveness of all internal control processes that can impact financial reporting

James 5:4

"Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty." This passage emphasizes that the Lord sees how employers and those in charge treat their employees and how they pay their wages. The Lord will hear the cries of the workers who are treated unfairly so employers must be responsible and treat their workers correctly and fairly.

Deuteronomy 24:15

"Pay them their wages each day before sunset, because they are poor and are counting on it. Otherwise they may cry to the Lord against you, and you will be guilty of sin." This verse relates to the idea that it is the employer's responsibility to pay their employees fair wages and fair wages on time.

Jeremiah 22:13

"Woe to him who builds his palace by unrighteousness, his upper rooms by injustice, making his own people work for nothing,not paying them for their labor." This verse relates to the employer's responsibility of building a solid foundation based on firm ethical standards. Those who build their foundation on unethical behavior such as injustice, wrongdoings, not paying people, etc is improper. A life and business successful to God is one that is built upon honesty, justice, integrity, among others.

What are the keys to successful corporate governance?

- Board of Directors - Disclosures - Transparency - CEO - Internal controls - Accountability - Healthy relationships with stakeholders

List and Describe biblical wisdom and the world's wisdom according to the class notes and James chapter 3. WORLD WISDOM (EBSBL)

- Earthly, Sensual, Natural, Demon Like - Bitter and envying - Strife - Boastful - Labors to be rich creates chaos and confusion

List and Describe biblical wisdom and the world's wisdom according to the class notes and James chapter 3. BIBLICAL WISDOM (PPGEFN)

- Pure - Peaceable - Gentle - Easily Entreated - Full of Mercy - never discriminates

Step 6

Choose your words wisely - Speak words that edify and that enhance the opportunity for an ethical response by the person to whom you are appealing

PLS no fear or PLS no FT

power, love, and self control not a spirit of fear or timidity

According to the class notes and discussion in class, what are some of the common pressures faced by employees?

- Personal or organizational financial difficulties - Family or relationship problems - Health Issues - Inadequate Compensation - Lack of promotion or recognition - Fear of failure - Academic, professional, and ministry competitiveness - Fear of what others think - Lack of preparedness

Examples of Internal Controls

- More than one person counting money at a church - Monthly review of budget statements to actual expenses - An example of a preventive control is that of having certain access controls in places such as password, two-step verifications, and authentications - Another type of preventive control is physical control over assets which includes physically checking (and double-checking) things such as locks on doors. - An example of detective controls, controls designed to find errors after the transaction has occurred, is monthly reconciliations of departmental transactions or checking physical inventories

Describe a situation in your life that you were asked to do something unethical or someone you knew was doing something unethical. Please apply the Steps to an Effective Appeal (from the course notes on Brightspace) to the situation. What did you do right? What would you do different if you had the opportunity to apply the Steps to an Effective Appeal.

...

Make sure that you are prepared to apply your Personal Ethics Statement and the Four Levels of the Ethical Framework to an Ethics Case. (BOPL)

1. Biblical Principles - principles and ethics taught through biblical teachings and stories 2. Organizational Policies, Standards, and Values - companies or organization's guidelines and policies over ethics 3. Professional Standards - following the guidelines of ethical and professional as under various codes of ethics 4. Laws, rules, and regulations - laws and regulations placed on professionals by governmental laws

Steps to an Effective Appeal

1. Prepared to make an appeal - I must be in a right standing with the organization or person 2. Search your heart - I must have the right motives for the benefits and protection of others 3. Provide an opportunity for sufficient consideration - I must appeal in a timely manner 4. Gather the facts objectively - Must provide accurate information 5. Emulate christ in your attitude - your reactions will reveal our motives, don't let your expectations determine our attitude 6. Choose your words wisely - Speak words that edify and that enhance the opportunity for an ethical response by the person to whom you are appealing 7. Seek wise counsel - avoid the ungodly when seeking counsel 8. Always respond in a Biblical Christ like manner - don't be a stumbling block to the authority 9. Be prepared to appeal again - appeal when asked to do something unethical or illegal

What are the four steps in unethical behavior according to Joshua 7:21?

1. Seeing the Opportunity 2. Coveting / Rationalizing 3. Taking or acting upon the opportunity 4. Hiding the unethical decision

Jeremiah

22:13

Dueteronomy

24:15

James

5:4

According to Lewis Smede's, the author of Forgive and Forget, what are the three parts of the definition of forgiveness? See page 164 in the text. (SIG)

According to Lewis Smede's book "Forgive and Forget" there are three main parts to the definition of forgiveness. The first part is surrendering the right to get even with the person who did the wrongdoing. The second part is interpreting the person who wronged us in a larger format and new perspective. The third step is having the gradual desire for the welfare of the person who did the wrongdoing.

Lindsey's Personal Ethics Statement

As I continue in my role as a Resident Assistant, IWU Cheerleader, and second-year student involved in a variety of fields such as marketing, design, and politics, it is extremely important to behave ethically in all areas of life. I will strive to be ethical in my social, academic, and professional lifestyle in order to mirror biblical and professional standards by upholding justice and accountability, striving to care for and serve others to glorify God, mirroring holiness, exhibiting honesty, and serving as a role model for others to behave ethically.

Step 9

Be prepared to appeal again - appeal when asked to do something unethical or illegal

Please describe the challenges that Cynthia Cooper experienced when confronting the unethical behavior at MCI Worldcom.

Cynthia Cooper faced resentment from her employees and fellow workers during the scandal at WorldCom. This scandal produced unemployment within the company and other losses which led to the employees and employers being upset at Ms. Cooper for being the whistleblower. She also experienced depression and major weight loss alongside this. According to her, it was the most difficult thing she has ever been through, but she would do it all again because she believed it was the right decision.

What do the following passages of scripture teach us regarding the Employer's responsibility to their employees? Please provide a response for each passage.

Deuteronomy 24:15 says "Pay them their wages each day before sunset, because they are poor and are counting on it. Otherwise they may cry to the Lord against you, and you will be guilty of sin." This verse relates to the idea that it is the employer's responsibility to pay their employees fair wages and fair wages on time. Jeremiah 22:13 says ""Woe to him who builds his palace by unrighteousness, his upper rooms by injustice, making his own people work for nothing,not paying them for their labor." This verse relates to the employer's responsibility of building a solid foundation based on firm ethical standards. Those who build their foundation on unethical behavior such as injustice, wrongdoings, not paying people, etc is improper. A life and business successful to God is one that is built upon honesty, justice, integrity, among others. James 5:4 says "Look! The wages you failed to pay the workers who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty." This passage emphasizes that the Lord sees how employers and those in charge treat their employees and how they pay their wages. The Lord will hear the cries of the workers who are treated unfairly so employers must be responsible and treat their workers correctly and fairly.

Why is it important for us to understand these steps? Please describe the difficulties a person will face as they progress in the steps. (Adam/Eve, Achan, Moses, David)

It is important for us to understand these steps, so that we can know what will happen when it comes to the point in our career where we have to choose how we will handle these decisions. Once you get farther in each step of unethical behavior it gets harder to want to turn away as one further pleases their fleshly desire. Within the bible, there are many examples of this. Eve for example took the opportunity to eat the forbidden fruit, she rationalized her decision and even convinced Adam to sin as well. From here, both Adam and Eve were aware of their nakedness and cursed. These actions would go on to have long-standing consequences. Another example is in fact Achan as he saw the opportunity to take the goods that God had told them not to take, he coveted/rationalized his decision, he then took the items and finally hid them. Achan's decision cost the lives of over 30 Israelites and his family. It becomes much more difficult to turn from doing the wrong thing. Another example is when Rebecca where she helped deceive her husband and steal away her other son's birthright. She rationalized her unethical decision. (Moses, David)

RIEI

Registration of accounting firms that audit public companies trading in U.S. securities markets. Inspections of registered public accounting firms. Establishment of auditing and related attestation, quality control, ethics, and independence standards for registered public accounting firms. Investigation and discipline of registered public accounting firms and their associated persons for violations of specified laws or professional standards.

What is PCAOB's main responsibilities?

The Act gives the PCAOB four primary responsibilities: registration of accounting firms that audit public companies trading in U.S. securities markets; inspections of registered public accounting firms; establishment of auditing and related attestation, quality control, ethics, and independence standards for registered public accounting firms; and investigation and discipline of registered public accounting firms and their associated persons for violations of specified laws or professional standards.

What is the PCAOB?

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, accurate, and independent audit reports.

What led congress to pass this major piece of legislation?

The Sarbanes-Oxley Act of 2002 came in response to financial scandals in the early 2000s involving publicly traded companies such as Enron Corporation, Tyco International plc, and WorldCom. The high-profile frauds shook investor confidence in the trustworthiness of corporate financial statements and led many to demand an overhaul of decades-old regulatory standards.

What is the Sarbanes Oxley Act (SOX)?

The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial reporting by corporations. It mandated strict reforms to existing securities regulations and imposed tough new penalties on lawbreakers.

According to the text on pages 178-179, what are the four signs of an ethical collapse? (WEFL)

The four signs of an ethical collapse are a weak board of directors, excessive pressure to meet the numbers, fear and silence from workers, and when leaders are doing good deeds in the community to distract or cover up dishonest practices.

WEFL

Weak board of Directors Excessive Pressure to meet numbers Fear & silence from workers Leaders do good deeds in the community to distract or cover up dishonest practices

Detective controls

controls designed to find errors after the transaction has occurred, is monthly reconciliations of departmental transactions or checking physical inventories

Section 802 of SOX

criminal penalties for altering documents such as penalties, fines, jail-time, etc.

Section 409 of SOX

issuers required to report and disclose the public immediately Requires disclosure to the public on a "rapid and current" basis of material changes in an organization's financial condition.

PCAOB Responsibility

registration of accounting firms that audit public companies trading in U.S. securities markets

Compensatory Justice

seeks to compensate for a past injustice, such as affirmative action programs. If someone is wronged or an injustice has occurred, there will be some method used to compensate for what happened so that justice will be served.

Utilitarianism Justice

seeks to consider the results or consequences of an act or decision. Therefore, an action is viewed as ethical if the consequences are good. Often used to justify the free enterprise system because it is considered by many individuals to produce the greatest good for the greatest number. Though there are some flaws in this system such as the occurrence of natural sin and numbers.

Internal Controls

the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.


संबंधित स्टडी सेट्स

Chapter 29: Management of Patients With Complications from Heart Disease

View Set

Usual, Customary, and Reasonable

View Set

Chapter V: Civil Rights and Public Policy

View Set