Ethics Ch 2

Which of the following are complaints of Kohlberg's work? (Select all that apply.)

A disregard for human emotion An over-reliance on dilemmas used to evaluate moral reasoning Too much reliance on Rawl's Theory of Justice

Which of the following are criticisms of Kohlberg's work? (Select all that apply.)

A disregard for traits of character An over-reliance on dilemmas to measure moral reasoning Makes deontological ethics superior to other ethical perspectives

Which of the following increases moral intensity? (Select all that apply.)

A greater degree of harm or benefit An action with immediate negative consequences A strong social consensus that an act is morally wrong

Which of the following increases moral intensity? (Select all that apply.)

A higher likelihood of occurrence and harm A higher concentration of effect

What is moral sensitivity?

Ability to interpret a situation as moral

Which of the following are ways Festinger assumes will reduce dissonance? (Select all that apply.)

Acquire new information that outweighs the beliefs that are not in harmony. Change one or more of the attitudes, behaviors, or beliefs so the two align. Reduce the importance of the beliefs and/or attitudes.

Which bias occurs when someone tends to blame individuals for events, rather than their work environment, policies and procedures, or incentive programs?

Attribution Bias

______ looks at the way individuals actually make decisions, rather than the way individuals would make decisions in an ideal world.

Behavioral ethics

ethics looks at the way individuals actually behave in moral circumstances.

Behavioral or Behavior

determines whether an individual behaves in accordance with their ethical intention.

Blank 1: Moral or Ethical Blank 2: Character

Reflection and deliberation in accounting relies on System thinking.

Blank 1: Two, 2, or II

The thought process followed in one's moral development is .

Blank 1: cognitive Blank 2: development

An individual's moral influences her intention to comply with her ethical judgment. (Enter only one word per blank.)

Blank 1: motivation or inspiration

Virtue plays an essential role in determining . (Enter only one word per blank.)

Blank 1: professional Blank 2: judgment or judgement

Kohlberg asserted that development in moral enables a person to become truly a moral person, both in thought and action.

Blank 1: reasoning, reason, judgment, or judgement

Our ability to spot ethical issues is known as moral .

Blank 1: sensitivity

Which bias describes when an an auditor may yield to pressures of the majority even though their views are incorrect?

Group think

Which bias describes when an individual has the tendency to view events as more predictable than they really are?

Hindsight bias

Which concept involves motivating employees so that they feel a part of the organization?

Inclusion

Individuals do not always behave in accordance with their ethical intention due to which of the following? (Check all that apply.)

Lack of a plan to carry out ethical intent with ethical action Weak ethical character Inability to withstand pressures Lack of alignment of intention and actions

Cognitive development is based upon 20 years of research by whom?

Lawrence Kohlberg

In accounting, when there are ambiguities within accounting and auditing standards, an accountant may not be able to make good decisions. Rest argues the accountant should seek what in this type of situation?

The presentation of financial information in a way that benefits the public interest

How does the culture of an organization contribute to ethical decision making? (Check all that apply.)

Through organizational expectations By the tone set by those at the top of the organization Through organizational relationships

What is the objective of applying moral judgment?

To select the morally justifiable course of action

Research suggests that individuals will act less ethically if they are not being watched. Which situational factor is this most related to?

Transparency

True or false: Moral motivation reflects an individual's willingness to place ethical values ahead of nonethical values.

True

True or false: The field of behavioral ethics deals with how our minds process information and make decisions.

True

Select the possible negative outcomes of simplifying complex issues to make decision making easier. (Select all that apply.)

Underestimating risk Failing to identify stakeholders

Thorne develops a model of individuals' ethical decision process that integrates Rest's components with what?

Virtue-based characteristics

What is the ethical dilemma facing Heinz?

Whether to steal the drug or not

The underlying features of cognitive development include Blank______. (Check all that apply.)

a thought process developing from childhood to adulthood an ability to make reasoned judgments becoming more complex and sophisticated with development

The trait of an individual with a strong ethical character compared to one with a weak ethical character may be summarized as the Blank______.

ability to withstand any pressures and act ethically

Rest believes that ethical actions Blank______. (Select all that apply)

are related to an individual's level of moral development result from a combination of cognitive structures and psychological processes

In stage 1 of Kohlberg's model, behavior is driven by the desire to Blank______.

avoid punishment

In stage 1 of Kohlberg's model, a person's behavior is influenced by Blank______. (Check all that apply.)

avoidance of punishment obedience to rules

Organizational pressures may lead to altering one's beliefs to fit Blank______.

behavior

In stage 3 of Kohlberg's model, behavior is driven by Blank______.

being fair to others

Values in an organization can best be thought of as Blank______.

beliefs or convictions that guide behavior and support the overall organization vision

When a staff accountant is aware of financial statement fraud, but does not report it because he/she believes his/her supervisor will correct the situation, this is an example of Blank______.

bystander effect

When an individual has the tendency to not report incidents of wrongdoing because he/she believes others will report it, this is commonly called Blank______.

bystander effect

Rest believes that ethical actions result from Blank______.

cognitive structures and psychological processes

The most common social and organizational pressures that can cause well-intentioned people to make poor ethical choices are Blank______.

conforming to ethical judgments of peers obedience to authority

The shared beliefs of top management about how they should manage themselves and other employees and how business should be conducted is known as Blank______.

corporate culture

Compared to System 1 thinking, System 2 is more Blank______.

deliberate

Rest's model is built on Kohlberg's work and is based upon behavior related to one's level of moral .

development

In stage 4 of Kohlberg's model, a person's behavior is influenced by Blank______. (Check all that apply.)

duty to the social order law and order

In stage 1 of Kohlberg's model, a person is not influenced by Blank______. (Check all that apply.)

egoism satisfying one's own needs fairness to others

Professional judgment requires not only technical competence, but also depends on auditors' virtues and .

ethics

The perception that "our way" is normal and that other ways are inferior is commonly called

ethnocentrism

Cognitive dissonance suggests that individuals have an inner drive to hold attitudes and beliefs in .

harmony

Virtues that directly influence an individual's actions are Blank______.

instrumental virtues

Virtues that indirectly influence an individual's intentions to exercise professional judgment are Blank______.

intellectual virtues

There is an important link between moral and ethical decision making.

intensity

Unlike System 2 thinking, System 1 thinking is more

intuitive

In stage 6 of Kohlberg's model, a person is influenced by Blank______. (Check all that apply.)

justice rights of others equality

Kohlberg developed the example of Heinz and the Drug to illustrate a dilemma.

moral

When a situation has higher Blank______, an individual is more influenced in his/her ethical decision making process.

moral intensity

Organizations having policies and procedures in place making it easy to report unethical behavior is an example of Blank______.

moral motivation

Organizations with ethically rewarding environments have a large degree of Blank______.

moral motivation

A corporate executive who spends company money on lavish parties and travel later claims he did nothing wrong. The executive's lack of responsibility falls under Blank______.

moral sensitivity

An individual's ability to identify when an ethical situation exists is an example of Blank______.

moral sensitivity

The moral atmosphere of the work environment and the amount of ethics practiced is referred to as the ethical climate.

organizational

One's cognitive understanding of an ethical situation influences reasoning.

prescriptive

An individual's ethical understanding of what should be done to resolve an ethical dilemma is called Blank______.

prescriptive reasoning

The underlying concept of moral sensitivity is Blank______.

recognizing the effect of one's actions on the welfare of others

Ethical leaders Blank______. (Check all that apply.)

refuse to compromise values in order to go along with the group honor a higher level of duty refuse to lie to investors

Behavioral ethics Blank______. (Select all that apply.)

requires understanding the consequences of actions looks at how situational and social forces influence the actual behavior of individuals requires explaining moral and immoral behavior in systematic ways

System 2 thinking in accounting relies on Blank______. (Check all that apply.)

systematic analysis consideration of stakeholder interests deliberate reasoning

Cognitive dissonance can best be defined as Blank______.

the inconsistency between our perceptions and behavior

In stage 5 of Kohlberg's model, a person is influenced by Blank______. (Check all that apply.)

the legal contract of society evaluating harms and benefits of actions rights and values of society

An auditor who reasons at stage 5 should emphasize Blank______.

the public interest

The ethical environment that is created in an organization by its leadership is known as Blank______.

the tone at the top

Moral motivation includes Blank______. (Check all that apply.)

the willingness to place ethical values ahead of nonethical values the intention to comply with ethical judgment

In stages 5 and 6, the auditor's behavior should be primarily influenced by ethical principles.

universal

In stage 6 of Kohlberg's model, behavior is driven by Blank______.

universal ethical principles

In stage 5 of Kohlberg's model, behavior is driven by Blank______.

upholding the rights and values of society

Betty Vinson changed her attitudes and behavior enabling her to reduce what?

Cognitive dissonance

Kohlberg suggests that individuals may change their decision priorities over time. Select all of the following that may influence moral development.

Corporate culture Ethics training Education

In Libby and Thorne's study of virtues, which of the following were identified as intellectual virtues? (Check all that apply.)

Dependability Integrity Healthy skepticism Truthfulness

Which social and organizational pressure has lead to poor ethical judgments in financial reporting?

Desire to please authority

Which bias is compounded by the false belief that the world is more predictable or controllable than it really is:

Deterministic Bias

Our views of other people (stereotypes) can cause which of the following negative behaviors? (Select all that apply.)

Discriminatory hiring Favoritism

Which concept involves treating individuals with respect and celebrating the rich dimensions of individuality?

Diversity

Which of the following are rules managers should follow when fostering ethical leadership? (Select all that apply.)

Do not choose actions that will harm others. Make decisions that respect the rights of others. Consider how actions will affect others. Think about potential actions before making a decision.

Which concept promotes fairness and justice where everyone receives the same things to enjoy a full, healthy life?

Equality

The tendency to believe ourselves, and the groups we belong, to be better than all others is an example of which bias?

Ethnocentrism

Select all the reasons why diversity and inclusion are important issues.

Fair and equal treatment creates an ethical corporate culture. Global business environment benefits from a diverse workforce.

Select all the following shortcomings that contributed to poor moral behavior at Volkswagen during the "Dieselgate" scandal. (Select all that apply.)

Miscalculating the consequences of not fixing the problem Overconfidence in its ability to absorb losses Underestimating risk

Match each component of ethical decision making identified by Thorne with the correct element of Rest's model.

Moral development -Ethical sensitivity Virtue -Ethical motivation Prescriptive reasoning -Ethical judgment

Within the cognitive-developmental paradigm, what is the most influential factor of an individual's moral behavior?

Moral judgment

An ethical climate is enhanced through which of the following? (Choose all that apply.)

Openness and transparency Values-driven organization

Which bias describes when an auditor may be conservative in his/her risk assessment but may fail to seek additional information to confirm or update his/her knowledge about internal controls?

Overconfidence bias

In Libby and Thorne's study of virtues, which of the following were identified as instrumental virtues? (Check all that apply.)

Persistence Diligence Courageous

Rest's conception suggests that an accountant should do which of the following when there are ambiguities in accounting standards? (Select all that apply.)

Present fairly all financial statements Comply with laws and standards Recognize the importance of laws and standards

Which factors influenced Betty Vinson's behavior in the WorldCom case? (Check all that apply).

Pressure from superiors Rationalization of actions as a one-time event Belief that others had more knowledge of accounting than her

Which of the following are reasons why rules in accounting cannot replace the auditors' professional judgment? (Check all that apply.)

Rules cannot be made to fit every situation. Rules may be unclear or nonexistent.

Which factor can influence ethical decision making and the actor may not even be aware of the effect?

Situational factors

An individual strongly affected by what he/she believes others within his/her social group considers morally right or wrong is an example of what?

Social Consensus

Select all of the following cultural values that influence one's belief structure. (Check all that apply.)

Socialization of children in society Collectivist-oriented society Individualistic society

The tendency to overestimate one's positive attributes and underestimate weaknesses is an example of:

Superiority Bias