ACC Ethics - Chapter 8 Questions
Identify the conclusion(s) to be drawn about the results of internal auditors' work in the HealthSouth fraud.
-A lack of ethical leadership by internal auditors stifled the moral intensity of financial reporting issues -The CEO pressured internal auditors as the company was under pressure to report good numbers
Authentic leaders are ethically oriented in their behavior because they
-Acknowledge ethical responsibilities of their roles -Recognize and evaluate ethical issues
What determines whether followers view managers as ethical leaders?
-Being principled and caring -Being a moral person -Being a moral manager
Which of the following are not critical components of building trust by moral managers?
-Closed-mindedness -Relativity (implies an uncertain standard of behavior)
For problems to be solved in an ethical manner, accounting professionals should
-Develop an environment of openness -Strive to be ethical leaders
The outcome of responsible leadership includes
-Ethical competencies, leadership, and culture
Ethical leadership failure can occur because of
-Ethical constraints on the means used to achieve ends -Applying and ends-justifies-the-means approach to ethical reasoning
The implications of the gender study on factors affecting decision making in public accounting include
-Females use an intuitionist approach to decision making -Males were less likely to recommend conceding to client wishes
Leader legitimacy is significantly influenced by
-Followers' normative expectations -Social context -Followers judgement -Social context created by followers' normative expectations
What increases the likelihood of trainee auditors reporting an ethical violation by an audit partner?
-Formal structures for whistleblowing exist -Firm quality controls exist
The cognitive challenges faced by leaders that influence ethical leadership include
-Ignoring interest of those outside their group of followers -Failure to note ethical constraints on the means used to achieve ends
The underlying purpose of values-based leadership is to
-Lead by example -Clearly articulate values of the organization -Connect with organizational values
What motivated Diem-Thi Le's supervisor at the Defense Contract Audit Agency to change her working papers?
-Make it appear that the audit risk was low on contractor-clients -Make it appear the audit work was more efficient
Which of the following best describes the reasons for the difference in perceptions of tax and non-tax partners of organizational ethics?
-Sense of public interest responsiblity -Role of partner in influencing the ethical enviroment of their firms -Frequency of receiving mentoring -Partner fit within firm culture
Transformational leaders seek to
-Serve as role model for followers -Develop followers into leaders -Challenge followers to take greater ownership for their work
What was the outcome of research conducted by Ponemon and Shaub?
-There is a link between organizational culture and leader decision-making styles -Leaders of accounting firms set the ethical tone at the top -Audit seniors' perceptions of the firm leaders and culture influence auditor behavior
Sims and Keenan's studies found that employees were more likely to engage in external whistleblowing if:
-They perceive company policies accept such behavior -They had support from their superior
Which of the following are characteristics of competent ethical leaders?
-Thoughtful deliberation in decision making -Ability to handle moral problems that arise
Ethical leadership failure can be attributed to
-individual factors -organizational factors
Each of the following factors were identified by Taylor and Curtis as influencing the intention to report wrongdoing
-locus of commitment -professional identity -moral intensity
Transformational leadership enacted in its authentic form enhances
-motivation of followers -morale of followers -performance of followers Transformational leadership approach causes change in individuals and social systems.
Which of the following best describes perceptions of organizational ethics in a self-identified ethical dilemma?
A disconnect exists between tax and non-tax partners
What is Ethical Leadership Competence?
Ability to handle all kinds of moral problems that may arise in an ornganization
The lack of strong organizational ethical leadership can lead to
Acting out of self-interest
The conclusion of Morris' research was
Authentic leaders can help to promote an ethical culture and reduce the instances of dysfunctional auditor behavior
The objective of transformational leadership is
Create change in individuals and social systems
Which of the following is a benefit of using the Ethical Leadership Scale?
Encourages self-reflection on one's leadership skills
Which of the following are managed indirectly and promoted by the idea of responsible leadership and incentives to promote exemplary behavior?
Ethical competencies
The questions asked by Lawton and Paez pertain to a
Framework for ethical leadership
While working for the Defense Contract Audit Agency, Diem-Thi was faced with an ethical dilemma when:
Her supervisor deleted the audit findings from Le's working papers
Match each pillar of character with traits of behavior: Moral Person
Honesty and integrity
Each of the following were found to be options for whistleblowers except (remain silent, exit the organization, voice discontent internally)
Inform external auditors
Leader ethicality includes each of the following traits of behavior except
Intention to demonstrate descriptively appropriate conduct
Covey's principle-centered leadership approach can best be described as
One's internal values should form the basis for external actions
Which of the following was not an attribute of internal audit leadership as a standard for ethical behavior?
Reactiveness
Match each pillar of character with traits of behavior: Moral organization
Role of leadership
Match each pillar of character with traits of behavior: Moral Manager
Strong ethics message
True or false: Seriousness of an unethical or illegal act can be more important than one's commitment to the firm and profession
True
True or false: Servant leaders use collaboration and persuasion to influence followers rather than control.
True
Which of the following statements best describes the ethical conclusions of the HeathSouth fraud?
Unethical leaders can corrupt the ethical culture, draw others in, and ruin a company
Leaders may gain legitimacy from followers when they
allow themselves to be influenced by followers
The longer an individual persists in attempting to resolve an issue, the more likely one's commitment to a ______ versus the organization becomes an influencing factor in determining whether to report wrongdoing.
colleague
The type of commitment that is dependent on a sense of responsibility and readiness to support colleagues within the organization is ____ commitment.
colleague
Clearly articulating values and demonstrating their application enhances the _____ of a leader.
credibility
Moral managers align ethical intent with
ethical action
A strong internal audit function may cause accountants to question the appropriateness and _______ of an undocumented journal entry.
ethicalness
Making ethical decisions requires _____ and _____ on what the right thing to do is.
judgement / reflection
As a community of people, an ethical organization seeks to achieve a
level of excellence
Senior auditors were more likely to report a manager's ethical violation when they perceived personal costs of disclosure were _____ or when personal responsibility for reporting was perceived to be ______.
low / high
An ethical leader is more attuned to the ______ of _______ and uses it to mitigate any bystander effect.
magnitude of consequence
In assessing whether to report wrongdoing, an individual should weigh the harm to the
organization from not reporting against the harm to the colleague from reporting
A way should be found to voice one's values with the intent of changing hearts and minds when ________ and actions differ from what one truly believes in.
organizational values
The term that explains what happens when unethical behaviors of leaders lead to inappropriate behavior of followers is
parallel deviance
When moral intensity is high, auditors are more likely to report wrongdoing and to
persevere
Trainee auditors are more likely to report wrongdoing internally when a firm has a system of ________ to report internally
quality controls
A firm will hire and promote individuals who fit the prevailing firm culture as a result of the ____ -____ bias.
selection-socialization
Leader ethically is assessed in the context of ______ prescriptions.
social
While she was working at the Defense Contract Audit Agency, Diem-Thi Le's annual performance evaluation was changed
to downgrade her performance from outstanding to fully successful
To achieve external rewards of a practice, ethical leaders should be guided by
virtues and values
