Ethics Chapter 1

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17. Empathy entails all of the following characteristics of behavior except for:

A. Being loyal to one's friends

69. Thomas Jefferson's writing in the preamble of the Declarations of Independence is a perfect example of what theory?

A. Rights Theory

73. Many critics say the biggest fault with deontological theories is

A. no clear way to resolve conflicts between moral duties

4. Each of the following characteristics describes the importance of integrity in decision making except for:

B. Being loyal to one's superior

7. Each of the following elements make up an integral part of what is meant by "ethics" except for:

C. Always following the law

10. Each of the following is an element of trustworthiness according to the Josephson Institute except for:

C. Fairness

18. If one's reputation is tainted it may create a:

C. Lack of trust

15. Responsibility goes hand in hand with:

D. Accountability

50. The country with the highest Power Distance score is

D. Russia

62. Which theory is based on doing what is right despite the consequences?

A. Deontology

49. The cultural value of Individualism reflects

A. The degree a society reinforces individual or collective achievement

22. A CPA would violate the Due Care Principle if he/she:

A. Undertook a professional engagement without having the requisite background, knowledge and experience.

51. The country with the highest Uncertainty Avoidance is

A. United States

78. In the NYC Subway Death case, the reason that no bystanders helped Ki-Suck Han was probably due to:

B. Bystander effect and moral blindness

46. What is the one virtue that people should want in a boss to trust the boss?

C. Honesty

33. The biggest problem in applying virtue theory to decision making is:

D. Conflicts between virtues may make decision making more difficult

41. Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked to slow down

"You are exceeding the time budget for the audit and making the rest of us look bad," said one staff member. The best thing for Jason to do is: C. Ignore what is being asked and go about his work as he has always done

25. The method of ethical reasoning that evaluates actions in terms of harms and benefits is:

A. Act Utilitarianism

27. The Rights Theory incorporates all of the following elements except for:

A. Act based on the consequences of one's actions on others

37. 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?

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

35. Under the IMA's standards of ethical practice, an accounting professional can consider informing authorities or individuals not employed by the organization when an ethical dilemma occurs about an accounting or financial reporting matter that remains unresolved if he/she:

A. Believes there is a clear violation of the law.

81. In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should

A. Capitalize or expense $1 million of expenditures

29. Teleology deals with

A. Consequences of actions

6. The ancient Greeks thought of the virtues as characteristics of behavior that:

A. Could lead to a good life

45. The best restatement of Kant's categorical imperative is:

A. Do to others as you would have everyone do unto you

58. Virtue ethics is

A. Doing what is right

2. Jane finds a material misstatement while auditing a client's accounts receivables. Her senior tells her to ignore the misstatement so that the client does not get upset. Jane wants to be viewed as a team player in order to advance in the firm. So Jane follows her senior's instructions and ignores the misstatement. Which ethical theory did Jane use to make her decision?

A. Egoism

24. The method of ethical reasoning that does not deal with making decisions after considering the interests of others is:

A. Egoism

30. Deontology deals with

A. Emphasizes rights of others

75. When an employee is given a job evaluation, he has a right to expect

A. Fair, but honest evaluations

13. An internal accountant should always consider taking each the following steps after exhausting all avenues of appeal within the organization when there is a difference of opinion with top management on an accounting or financial reporting matter except for D. All of the above

A. Inform the SEC B. Terminate employment with the entity C. Seek legal advice before taking any action D. All of the above

8. Ethical relativism can best be described as a:

A. Point of view that morality is relative to the norms of one's culture.

55. Utilitarian philosophers are divided into two types: act utilitarian and

A. Rule utilitarian

80. The main issue in the Reneging on a Promise case is:

A. Should the student who accepted an offer from one CPA firm back off from that promise in order to accept the offer of another firm deemed more preferable to the student.

59. The philosophical belief that you should judge the result, not the action (end justifies the means) is?

A. Utilitarianism

42. Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family-owned business, Cal Poly Greenery. The company has only three employees - Steve, the husband, and the wife. All three have been friends for many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective, Steve has D. All of the above

A. Violated the trust placed in him by the owners B. Risked his reputation if the owners find out C. Compromised his integrity D. All of the above

65. Aristotle defined __________ as a trait of character manifested in habitual action.

A. Virtue

83. In the Faulty Budget case, the primary ethical issue can be stated as:

A. Whether an accountant should admit to a mistake once he has discovered it

11. An accountant who blows the whistle on financial wrongdoing by his/her employer by going outside the entity violates:

B. Confidentiality

38. George is in the middle of a high stakes poker game when he notices what he thinks is cheating by another player. It appears to George that this player took a card from his lap and switched it with a card that he was dealt. If George is a utilitarian thinker, he should:

B. Consider what might happen if he accuses the player of cheating and he is wrong

57. The motive of "duty" is most associated with

B. Deontology

34. The credibility standard in the Statement of Ethical Professional Practice of the IMA requires that an accounting professional should: D. All of the above A. Communicate information fairly and objectively

B. Disclose all relevant information that might affect the intended user's understanding of the reports, analyses or recommendations C. Disclose delays or deficiencies in information, timeliness, processing or internal controls in conformance with organization policy and the law

54. Kant's categorical imperative principle suggests that:

B. Everyone should be treated as a free and equal person

36. Eddie paid an $8 restaurant check with a $10 bill. The waitress gave him $12 back. The most ethical action for Eddie is to:

B. Inform the waitress of her overpayment

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

B. Integrity

26. The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over harms is:

B. Rule Utilitarianism

47. The most likely rationalization a student might use to justify cheating on an exam is:

B. Situational ethics

12. When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting or financial reporting manner?

B. The CEO supports the CFO and does not agree to correct the financial statements

3. Which of the following situations would be considered ethical?

B. You accidentally back into a car at Wal-Mart and leave your information for them to call

67. Assume you are taking an exam and you see that your friend is cheating. Your professor does not notice it. What should you do if you are trustworthy person?

B. You tell your professor immediately.

66. According to Kant, individuals may be treated as:

B. an end and never as a means only

21. The Independence Principle in the AICPA Code applies to:

C. All CPAs who render attestation services

63. When applying Utilitarianism to judge actions, what is the only thing that matters?

C. Consequences

23. Aristotle believed that __________ always preceded the choice of action

C. Deliberation

60. 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?

C. Egoism

84. In the Cleveland Custom Cabinets case, the owner of the company thought it was all right to manipulate the financial statement numbers primarily because

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

52. Virtue ethics emphasizes development of good habits of character. What should be the greatest reward of practicing good habits of character, according to MacIntyre?

C. Internal rewards

85. The ethical issue in the Telecommunications case can best be described as:

C. Is it a conflict of interests for employees to accept payments or other gifts when they are involved in the decision or execution of a contract for the party making the payment or gift

31. The biggest problem in implementing an utilitarian approach to decision making is:

C. It can be difficult to evaluate the consequences of actions

32. The biggest problem in implementing a rights approach to decision making is:

C. It relies on moral absolutes

28. The ethical reasoning method that is based on treating equals, equally and unequals, unequally is:

C. Justice

68. Your manager asks you to "cook the books" to support a loan application at the local bank. The manager insists it is a one-time request. If you are a person of integrity, what should you do?

C. Refuse to go along with the request

53. Michael Josephson, founder of the Josephson Institute of Ethics, is credited for :developing

C. Six Pillars of Character

19. The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:

C. The need to be independent of the client

56. Greatest good for the greatest number of people is the theory of

C. Utilitarianism

77. In the Giles and Regas case, the primary ethical issue can be stated as:

C. Whether a superior should become involved in a dating relationship with a subordinate

71. A difficult choice between two moral principles that are in conflict with one another is known as a/an:

C. ethical dilemma

70. "Do that action which will bring about the greatest good for the greatest number of people," is the basic concept of which ethical theory?

C. utilitarianism

61. Egoists maintain a general principle of the following sort:

D. "One ought always act in one's own interest"

20. Objectivity requires that a CPA should: A. Maintain a mental attitude of impartiality B. Maintain a mental attitude of intellectual honesty C. Be free of conflicts of interest D. All of the above

D. All of the above

76. In the Harvard Cheating Scandal case, using ethical reasoning who is at fault for situation? A. The professor B. Teaching assistants C. Students who cheated D. All of the above

D. All of the above

82. Kevin Lowe's ethical dilemma in the Eating Time case can best be described as whether to:

D. Devote time on an audit and not charge it to the job

16. Treating other fairly encompasses treating them:

D. Equally, impartially, and openly

72. The relationship between legal and ethical is that

D. Ethical behavior requires us to do more than required by the law and less than the law allows

48. The noted researcher who studied how values in the workplace are influenced by culture is:

D. Geert Hofstede

5. Each of the following describes the behavior of Cynthia Cooper in the WorldCom fraud except for:

D. Hesitance

44. The most important duty of public accounting is to the:

D. Investing public

14. Respect is an important character of behavior because:

D. It encompasses attributes of how we should treat others

64. An important modern contributor to the theory of utilitarianism is:

D. Jeremy Bentham

9. Each of the following is a pillar of character according to the Josephson Institute except for:

D. Judgmental

79. In the Lone Star School District case, the auditors were mostly concerned about:

D. The lack of documentation for travel and entertainment expenses

43. Ty is a rising star at Texas State Country & Western Stores. He is the controller of the company. His wife, Rosie, is the lead auditor of the CPA firm that examines Country & Western's financial statements and issues an audit opinion.

Given the nature of the relationships, Rosie would violate what ethical standard if she is allowed to conduct the audit: C. Independence

39. Janice is a staff accountant in the accounting firm of Obama and Biden. She is assigned to the audit of HealthCare Associates. On the very first day Janice noticed that the accounting manager of the client took money out of the petty cash fund and put it in his pocket.

The best action for Janice to take is: B. Inform her immediate supervisor of what she observed

40. Kelly is the controller of a small company. One day the CFO comes in and tells her to lower the estimate of uncollectible accounts receivable. Kelly insists her numbers are correct as is. The CFO tells her it will mean her job at the company if she doesn't go along with the smaller estimate.

The primary virtue that would enable Kelly to resist the pressure to manipulate the number is: B. Integrity


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LifePac Grade 12 Government Unit 3 Self Test 1

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Ch BDetermine which of the statements below is correct regarding the present value concept.

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