Chapters 1-4 Quizzes

Kohlberg's model suggests that people continue to change their decision priorities a) over time b) with additional experience c) with additional education d) all of the above

all of the above

Why does financial statement fraud occur? a) situational pressure b) perceived opportunity c) rationalization d) all of the above

all of the above

According to studies, at which stage of moral development do CPA's primarily reason? a) stage 1 & 2 b) stage 3 & 4 c) stage 5 & 6 d) stage 2 & 3

stage 3 & 4

Contingent fees may only be permitted when a CPA or firm performs a) compilation of financial statements for a third party use b) preparation of a tax return c) advisory services for non-attest clients d) audits or reviews of financial statements

advisory services for non-attest clients

Which of the following is an essential part in making professional judgments and helps and auditor keep a mindset of independent thought? a) professional conduct b) professional bias c) professional skepticism d) none of the above

professional skepticism

No matter how well-conceived and operated an internal control system can only provide a) absolute assurance to management b) reasonable assurance to management c) overrides of internal control by management d) internal control systems do nothing for management

reasonable assurance to management

Which of the following is not a way the SEC emphasizes independence in fact and appearance? a) proscribing certain financial interests and business relationships with the audit client b) restricting lower level auditors from speaking to a client's upper-level management c) restricting certain non-auditing services to audit clients d) subjecting all auditor conduct to a general standard of independence

restricting lower level auditors from speaking to a client's upper-level management

People of integrity: a. Do the right thing because they are self-driven b. Do the right thing if there is a desired reward c. Do the right thing only if a specific person watching d. Do the right thing if someone advises them to do so

Do the right thing because they are self-driven

The following are examples of financial statement fraud except: a. Revenue Overstatement b. Expense Understatement c. Improper Asset Valuations d. Equity Misclassifications

Equity Misclassifications

Which of the following is not an example of an Accounting regulatory body? a) Institute of Management Accountants b) Institute of Chartered Accountants c) State Boards of Public Accountancy d) International Society of American Accountants

International Society of American Accountants

When is "Giving Voice to Values" used? a) Pre-Decision-making. b) Post-Decision making. c) Moral Decision making. d) Ethical Decision making.

Post-Decision making

The AICPA Code of Conduct is divided in two two sections 1) ________, which are aspirational statements that serve as expectations that are not legally binding. 2) ______, which are enforceable applications of the Principles. a) principles and values b) principles and rules c) virtues and ethics d) rules and principles

Principles and Rules

According to the Integrated Decision-Making Model, Ethical Intent means to: a) Take action b) Identify and evaluate alternative courses of action c) Reflect on the moral intensity of the situation and virtues that enable ethical action to occur d) Identify the ethical and professional issues

Reflect on the moral intensity of the situation and virtues that enable ethical action to occur

Why are Internal Accountants, Compliance Auditors, and Internal Auditors forbidden from receiving a whistleblowers award under the Dodd-Frank act? a. They should report it to their employer first b. They have a duty to report it c. They can make fraudulent claims d. None of the above

They have a duty to report it

In ethical issue intensities, the importance of the issue to the individual, work group, and organization is based on a. Values, beliefs, norms b. Transparency, independence, justice c. Integrity, trust, humility d. None of the above

Values, beliefs, norms

Which of the following is a distinguishing mark of the accounting profession? a) acting in the client interest b) acting in the public interest c) acting in self-interest d) acting in management interest

acting in the public interest

Which of the following is a difficulty to implementing utilitarianism? a) can be difficult to determine the criteria to distinguish equal from unequal claims b) fails to consider interests of those affected by the decision c) impossible to foresee all consequences and consequences are difficult to measure d) interest of others are subservient to self-interest

impossible to foresee all consequences and consequences are difficult to measure

How linear is the ethical decision making process model that consists of the four major components discussed? a) is not a linear decision making model b) somewhat linear decision making model c) very linear decision making model d) can sometimes become linear dependent on the situation

is not a linear decision making model

The integrity principle consists of all the following except for a) not subordinating the public interest for personal gain and advantage b) help achieve some ultimate goal for self c) being honest and candid within the constraints of confidentiality d) observing both the form and spirit of technical and ethical standards

help achieve some ultimate goal for self

The Institute of Management's Accountants' (IMA) standards includes all of the following except: a) honesty b) competence c) confidentiality d) credibility

honesty

Which of the following is not one of the key markers of a highly ethical organization? a) trust b) honor c) structural reinforcement d) social responsibility

honor

Which of the following principles acts to preclude relationships that may impair a member's objectivity in rendering attestation services? a) due care b) independence c) integrity d) objectivity

independence

According to Hofstede's cultural dimensions, high uncertainty avoidance societies will: a) have more tolerance for a variety of options b) enforce fewer laws to allow for more flexibility c) institute more laws to reduce the amount of uncertainty d) prefer material rewards

institute more laws to reduce the amount of uncertainty

The AICPA Code of Conduct principles include all of the following except a) due care b) integrity c) virtues d) public interest

integrity

Integrity, Truth, Independence, Objectivity, and Healthy Skepticism are important for CPAs. What type of virtue are they? a) intellectual virtues b) global ethical values c) instrumental virtues d) american virtues

intellectual virtues

The virtues important for auditing that indirectly influence individuals' intentions to exercise professional judgment are a) intellectual virtues b) instrumental virtues c) cerebral virtues d) societal virtues

intellectual virtues

Who recognized the limitation of philosophical reasoning approaches integrated into decision models? a) socrates b) leon festinger c) lawrence kohlberg d) linda throne

leon festinger

"This is not fair to the client, but I don't want to hurt my reports/team/boss/company" is what type of reason and rationalization? a) expected or standard practice b) materiality c) locus of loyalty d) locus of responsibility

locus of loyalty

Stating "this is not responsibility, I'm just following orders" is the basic definition of which item listed below? a) locus of responsibility b) locus of loyatly c) isolated incident d) expected or standard practice

locus of responsibility

According to the Ethical Dissonance Model, dysfunctional leader behaviors and susceptible followers are common in a ______ organization and _______ individual ethics situation. a. high, high b. high, low c. low, high d. low, low

low, low

Which of the following is not a pillar of the Six Pillars of Character? a) trustworthiness b) fairness c) loyalty d) citizenship

loyalty

Which value should NEVER take precedence over other values? a) respect b) caring c) loyalty d) citizenship

loyalty

Why is loyalty, a dimension of trustworthiness within the Six Pillars of Character, the one value that should never take precedence over the other values? a) the other values are entirely essential and therefore always take precedent b) loyalty is only required when it comes to the public interest, and inconsequential in other relationships c) some organizations do not have a culture that places a heavy emphasis on loyalty, so it depends on the organization you are working with d) loyalty requires a commitment to do the right thing for the right people in the right way, and this means that sometimes you have to go against those that you are loyal to if they are not doing the right thing

loyalty requires a commitment to do the right thing for the right people in the right way, and this means that sometimes you have to go against those that you are loyal to if they are not doing the right thing

Which of the following is not one of Six Dimensions of Moral Intensity? a) probability of effect b) temporal immediacy c) social consensus d) magnitude of effect

magnitude of effect

What is the false about the public interest in accounting? a) making decisions with unconscious bias b) acting with integrity in performance of professional service c) exercising due care in the performance of services d) honoring public trust

making decisions with unconscious bias

Based on Hofstede's Cultural Dimensions in collective societies: a) people look after themselves and their direct family b) might be more prone to blow the whistle c) might be more prone to cover up a misdeed to save face d) none of the above

might be more prone to cover up a misdeed to save face

In James Rest's model of ethical action, which one of the four components states the following: the ability to reason through several courses of actions and making the right decision when forced with an ethical dilemma? a) Moral Character b) Moral Judgement c) Moral Focus d) Moral Sensitivity

Moral Judgement

What are the steps of the Integrated Decision-Making Model in order? 1. Take Action 2. Reflect on the moral intensity of the situation and virtues that enable ethical action to occur 3. Identify the ethical and professional issues 4. Identify and evaluate alternative courses of action a. 4,3,2,1 b. 3,4,2,1 c. 1,2,3,4 d. 4,3,1,2

3,4,2,1

What Measures should be taken to establish an ethical culture? a. Clear Policies. b. Ethics Training Program. c. A top Level Officer. d. All of the above

All of the above

The Dodd-Frank Wall Street Reform established all of these *except*: a. Benefits for whistleblowers who aid in recovery of $1M or more can receive 10-30% of the recovery b. That the whistleblower has not provided the information previously to the government, a self- regulatory organization, or the PCAOB c. Protects an employee who provides information on a fraud against retaliation d. Loyalty should not be used to mask one's ethical obligation to maintain integrity and protect the public interest

Protects an employee who provides information on a fraud against retaliation

Which of the following are permitted disclosures of confidential client information? I. to disclose in response to validly issued subpoena or summons II. to disclose in order to comply with peer review of CPA practice under the PCAOB, AICPA, state CPA society, or board of accountancy organization III. to disclose in order to aid in the defense of an investigation of the CPA a) I only b) II only c) I & III d) I, II, & III

I, II, & III

In the Deloitte insider trading case, what was Thomas Flanagan's role? a) trading in the securities of multiple security clients b) giving insider trading knowledge to a family member c) whistle blowing a partner's actions of insider trading d) a & b only

a & b only

Which of the following covers a broad number of actions that may bring discredit to the profession? a) acts discreditable b) professional standards c) accounting principles d) general standards

acts discreditable

The Internal Control - Integrated Framework is designed to provide reasonable assurance on the a) effectiveness and efficiency of operations b) reliability of financial reporting c) compliance with laws and regulations d) all of the above

all of the above

Which of the following are responsibilities of the CPA's to their clients and the tax systems? a) CPA should not recommend a tax return position or sign a tax return unless she has a good-faith belief that the position has at least a "realistic possibility of success" b) CPA cannot recommend a tax return position that he knows exploits the audit selection process of a taxing authority c) CPA's obligation to advise a taxpayer of relevant tax return disclosure responsibilities and potential penalties d) all of the above

all of the above

The SEC has provided their position on independence through three underlying principles a) an auditor cannot function in the role of management, an auditor can only serve in the role of advocacy of their client, an auditor can inspect their own work per the PCAOB's ruling b) an audit cannot audit their own work, an auditor cannot function in the role of management, an audit cannot serve in an advocacy role for their client c) an auditor cannot function in a role of management, an auditor cannot trust the information provided by the client without verification, an auditor cannot provide assurance work while the firm provides tax related work d) none of the above

an audit cannot audit their own work, an auditor cannot function in the role of management, an audit cannot serve in an advocacy role for their client

According to the SEC's position on independence, there are three overarching principles that underlie auditor independence. Which of the following is not one of these principles? a) an auditor cannot have a business relationship with the client b) an auditor cannot function in the role of management c) an auditor cannot audit his/her own work d) an auditor cannot serve in an advocacy role for his/her client

an auditor cannot have a business relationship with the client

Which of the following is not an example of a conflict of interest? a) an auditor has stock ownership of an audit client b) an auditor's spouse has a key role in management for the audit client c) an auditor's second cousin has material investments of an audit client d) an auditor is on the Board of Directors for an audit client

an auditor's second cousin has material investments of an audit client

Unethical behavior and financial collapse sometimes go hand and hand because of a) overly pessimistic financial projections b) rogue employee behavior c) an unrealistic emphasis on meeting financial projections d) disloyalty to the boss

an unrealistic emphasis on meeting financial projections

Which type of tendency may lead to judgments based on the accessibility of information rather than deliberate analysis of how the facts of the current situation differ from prior ones? a) confirmation tendency b) overconfidence tendency c) anchoring tendency d) availability tendency

availability tendency

Rules for managers to set an ethical tone at the top include all of the following except? a) consider how your actions affect others b) make decisions that are universal c) be kind to everyone d) reflect before deciding

be kind to everyone

Which of the following is true in respect to individualist societies? a) blows the whistle more often b) look over the people in their community more c) try to cover up fraud more than collectivist societies d) japan is a great example of an individualistic society

blows the whistle more often

Which of the following statements is *not true* regarding situation ethics a) both ethical relativism and situation ethics deny the existence of universal moral standards b) situation ethics holds that what in sometimes and some places is ethical may be unethical in other times and other places c) situation ethics is the body of ethical thought that take normative principles such as virtues and natural laws d) for situationists, circumstances around ethical dilemma can be influence that agent's decision-making process and may alter the agent's decision

both ethical relativism and situation ethics deny the existence of universal moral standards

Which of the following relates to officers and directors who are expected to exercise due care and to use their best judgment guiding corporate management, but are not insurers of business success: a) duty of care b) duty of loyalty c) duty of good faith d) business judgment rule

business judgment rule

Shelby is serving as the Chief Accounting Officer for Vaello Industries. Shelby comes across an issue she feels like she needs to address, but she is unsure of where to start. If Shelby's first concern is acting in the best interest of her corporation, which duty is she fulfilling? a) duty of corporate concern b) duty of good faith c) duty of loyalty d) duty of care

duty of loyalty

Which of the following is false in regard to Moral Reasoning and Moral Behavior; Morality requires a) persons actions be rational b) motivate by the person or intent c) carried out with autonomous free will d) carried out under the influence of someone else

carried out under the influence of someone else

How we think we should behave is different from how we decide to behave. This is called a) cognitive dissonance b) moral sensitivity c) probability of effect d) ethical motivation

cognitive dissonance

This is a type of tendency where decision makers put more weight on information that is consistent with their initial beliefs or preferences a) overconfidence tendency b) anchoring tendency c) confirmation tendency d) availability tendency

confirmation tendency

________ decision maker put more weight on information that is consistent with their initial beliefs or preference a) availability tendency b) confirmation tendency c) overconfidence tendency d) anchoring tendency

confirmation tendency

What is not an obligation of an accountant trying to blow the whistle in company? a) provide a copy of issues to SEC within one day b) resign from engagement c) report to board of directors d) confront the people committing the fraudulent activities

confront the people committing the fraudulent activities

An unethical act that harms several individuals is more morally intense than the act that harms only one individual. This is an example of which of the following dimensions on Jones' Moral Intensity Model? a) social consensus b) proximity c) probability of effect d) consequences of magnitude

consequences of magnitude

Which of the following accounting service satisfy the client's interest and does not require independence from the client? a) audit service b) consulting service c) tax service d) all of the above

consulting services

Which of the following is NOT a key marker of highly ethical organization? a) integrity b) societal responsibility c) humility d) courage

courage

Instrumental virtues are those that a) indirectly influence an individual's intentions to exercise professional judgment b) directly influence an individual's intentions to exercise professional judgment c) indirectly influence an individual's actions d) directly influence an individual's actions

directly influence an individual's actions

In trying to resolve a situation of unethical conduct regarding a fellow co-worker, the first thing an accountant should consider doing is a) keep the matter to oneself to protect self-interests and hope the situation will improve over time b) tell another co-worker and work together to solve the issue directly c) go get legal advice before consulting upper management d) discuss the issue with an immediate supervisor or higher authority

discuss the issue with an immediate supervisor or higher authority

Measures that should NOT be taken to establish an ethical culture would be to: a) have clear policies on ethical conduct including a code of ethics b) have strong internal controls to prevent and detect unethical behaviors c) create an ethics hotline for anonymous tips d) enforce ethics unfairly and never take action against violators

enforce ethics unfairly and never take action against violators

Which of the following considers the well-being of others and helps achieve some ultimate goal for oneself? a) enlightened egoism b) utilitarianism c) deontology d) virtue ethics

enlightened egoism

Which of the following is a form of egoism that allows for the well-being of others? a) enlightened egoism b) humanitarian egoism c) hofstede's egoism theory d) no form of egoism allows for the well-being of others, only the self

enlightened egoism

What is an effective way for an organization to instill a commitment to act ethically in its employees? a) hire only ethical employees from the beginning b) send daily reminders via email to all employees reminding them of their obligations c) establish an ethics training program d) treat employees with respect and then they will not want to disappoint the organization

establish an ethics training program

Technical skills are important in accounting but so are ______ abilities a) people-person b) ethical reasoning c) virtue-based d) practical wisdom

ethical reasoning

According to ACFE 2014 Report to the Nation Occupational Fraud Report the most frequently used anti-fraud control is a) independent audit committee b) management review c) external audit of financial statements d) external audit of internal control

external audit of financial statements

Auditors need to use system 2 thought process. Which one of the following is *not* a system 2 thought process? a) ethical awareness b) application of ethical reasoning c) ethical analysis d) fast and emotional decision process

fast and emotional decision process

Which of the following is a sign of ethical collapse? a) strong board of directors b) fear and silence c) conflicts of interests addressed d) innovation beyond any other company

fear and silence

Which of the following is NOT considered a safeguard to mitigating risk? a) whistle-blower hotlines b) financial self-interest c) tone at the top d) use of third party resources for consultation

financial self-interest

__________ rule establishes requirements for competence, compliance with professional standards, and adherence to accounting principles a) general standards b) integrity c) common placce d) competence auditor

general standards

Which of the following would involve conflict in the Ethical Dissonance Model? a) high-high b) high-low c) low-low d) none of the above

high-low

Which of the following is not a component of the COSO framework? a) risk assessment b) control activities c) monitoring d) honest engagement

honest engagement

Which of the following is not of the steps used by the AICPA for analyzing threats? a) identifying and evaluating threats to independence b) if safeguards are available to eliminate an unacceptable threat or increase it to an acceptable level, independence would be considered impaired c) determining whether safeguards already eliminate or sufficiently mitigate identified threats and whether threats that have not yet been mitigated can be eliminated or sufficiently mitigated by safeguards

if safeguards are available to eliminate an unacceptable threat or increase it to an acceptable level, independence would be considered impaired

PA who is able to avoid misrepresenting facts or subordinating their judgment when performing professional service for a client, is showing which ethical principle? a) integrity b) confidentiality c) objectivity d) professional competence

integrity

______ can lead to accepting a solution before it is properly identified and evaluated a) group-think b) rushing to solve the problem c) judgment triggers d) none of the above

judgment triggers

In which ethical fit scenario of the ethical dissonance model would you find a reduction in job satisfaction and high employee turnover? a) low organizational-low individual b) low organizational-high individual c) high organizational-high individual d) high organizational-low individual

low organizational-high individual

When a client seeks out an auditor who will go along with their accounting treatment, they are: a) lowballing b) opinion shopping c) cheating d) audit searching

opinion shopping

Which of KPMG's four common judgment tendencies leads decision makers to overestimate their own abilities to perform tasks or to make accurate diagnoses or other judgments and decisions? a) availability tendency b) confirmation tendency c) overconfidence tendency d) anchoring tendency

overconfidence tendency

All of these are measures that should be taken by an organization in order to establish an ethical culture, except for: a) clear policies on ethical conduct including code of ethics b) ethics training program c) whistleblowing policies d) pressure to maintain numbers

pressure to maintain numbers

Which of the following is not a safeguard to threats of independence? a) safeguards created by the profession, legislation, or regulation b) safeguards implemented by the attest client c) safeguards implemented by the firm d) safeguards implemented by the public

safeguards implemented by the public

Preparing source documents used to generate the client's financial statements. What type of threat is this? a) familiarity threat b) self-review threat c) undue influence threat d) advocacy threat

self-review threat

The degree to which an organization understands and addresses stakeholder demands can be referred to as a) stakeholder orientation b) stakeholder responsiveness c) stakeholder sensitivity d) stakeholder motivation

stakeholder orientation

When differences exist between the AICPA and those of the licensing state board of accountancy, the CPA should follow who's rules? a) AICPA b) State Board c) whether the CPA believes is most accurate d) none

state board

When differences exist between AICPA and those of the licensing state board of accountancy, the CPA should follow a) the state board rules b) the AICPA c) the rules that benefit the CPA most d) the rules most closely related to the subject at hand

state board rules

Which one of these is not one of the four elements of whistleblowing? a) the whistleblower b) the party to whom the complaint is made c) the internal auditors d) the whistleblowing act or complaint

the internal auditor

When taking shortcuts or allowing pressures/biases imposed by other to taint decision-making and compromise professional judgment, what happens to the accounting profession? a) the public loses trust in the accounting profession b) the accounting profession becomes unreliable c) there is an immediate decline in the professional integrity d) the professional is seen as unethical in its entirety

the public loses trust in the accounting profession

Which of the following is not considered financial statement fraud? a) revenue overstatement b) expense understatement c) theft of equipment d) improper asset valuations

theft of equipment

Which term refers to the ethical environment that is created in a workplace by an organization's leadership? a) tone at the top b) code of ethics c) internal mechanism d) business judgment rule

tone at the top

Which of the following individuals would not subject a CPA to the independence rule if they were to have a material financial interest? a) spouse b) brother c) uncle d) dependent

uncle

Behavioral indicators of fraud include all of the following except a) living beyond means b) addiction problems c) working few hours d) financial difficulties

working few hours

Corey was selected for his position by the CEO of the tech company they work at. Corey has no qualifications for his job. Which of the seven signs of ethical collapse does this situation fall into? a) fear and silence b) weak board of directors c) conflicts of interest overlooked or unaddressed d) young 'uns and bigger than life CEO

young 'uns and bigger than life CEO

The difference between people who have a strong moral intensity versus people who have a weak moral intensity is their ability to a) Be affected by what they think others in their group believe to be morally right or wrong b) Withstand outside and inside pressures to act and conduct themselves in an ethical manner c) Act against what is considered the norm for accountants d) Allow pressure to get the best of them

Be affected by what they think others in their group believe to be morally right or wrong

Which of the following is defined as the shared beliefs of top managers in a company about how they should manage themselves, other employees, as well as how they should conduct their business? a. Corporate culture b. Code of ethics c. Tone at the top d. Top management

Corporate culture

The year is 1930 and the Great Depression is in full swing. You are the head of your household and the sole provider for your wife and kids. Your family is starving and you do not have any money to buy food. The man at the fruit stand will not give out any food for free under any circumstance. Which of the following is an example of Post-Conventional Moral Reasoning? a) Steal the fruit, depending on how much you like your family and how much risk there is b) Steal the food, because you love your wife and kids and don't want to see them starve to death and know it's the right thing to do. c) Do not steal the food, since stealing is against the law. The fruit-stand owner has rights too and it is in the best interest of society that law and order is maintained. d) none of the above

Do not steal the food, since stealing is against the law. The fruit-stand owner has rights too and it is in the best interest of society that law and order is maintained

The year is 2000 and Joey is an accountant at EarthComm. He believes there is wrongdoing occurring and is debating to himself if he should disclose to the SEC. A week goes by and Joey has witnessed other co-workers being instructed to incinerate paperwork and improperly influence witnesses related to the issue he discovered. Joey can come forward to the SEC because he is protected under which Act? a. Emergency Economic Stabilization Act b. Dodd-Frank Act c. Gramm-Leach-Bliley Act d. None of the above

Dodd-Frank Act

Directors and officers have many ethical and legal responsibilities. Which of the following requires them to care for the well-being of the constituents of the fiduciary? a. Duty of Loyalty b. Duty of Care c. Duty of Good Faith d. Duty of Good Judgement

Duty of Good Faith

Behavioral Ethics considers: a) Conscious, effort, and reason b) How individuals make decisions in the real world versus how they would make decisions in an ideal world c) How higher stages are consistent with theories of rights and justice d) How an individual's behavior is related to their level of moral development

How individuals make decisions in the real world versus how they would make decisions in an ideal world

Which of the following is FALSE with regards to Leon Festinger? a) Was the creator of the Integrated Ethical Decision-Making model b) Coining the term "Cognitive Dissonance" c) The phrase: How we think we should behave is different from how we decide to behave d) Recognized the limitation of philosophical reasoning approaches integrated into decision making models

Was the creator of the Integrated Ethical Decision-Making model

Which of the following statements below is not listed under "improper asset valuations"? a) manipulating reserves b) failing to take a write down when needed c) manipulating estimates of the fair market value? d) all of the above statements are pair of "improper asset valuations"

all of the above statements are pair of "improper asset valuations"

which one of these is *not* one of the six pillars of character? a) trustworthiness b) respect c) alturism d) citizenship

alturism

Which of the following is an example of how technology has made cheating easier for students in both primary school and secondary school? a) hiding a cheat sheet during an exam which contains pertinent information b) availability of solutions manual and test bank questions online c) students obtaining a copy of the test from the professor's personal belongings and sharing with other students d) larger classrooms which conceal noise, making it easier for students to discuss the questions when the exam proctors are not close in proximity

availability of solutions manual and test bank questions online

Which of the following traits of a professional accountant is the ultimate guarantee of good service and quality? a) quick workpaper turnaround b) ethical behavior c) good listener d) easy to get along with

ethical behavior

Molly has started her new job at a Big 4 firm. Before she started, she promised herself she would not let any internal or external pressures get in the way of her doing the right thing when faced with ethical dilemmas. After a few months, she cracks under external pressure from her boss and makes a phony journal entry for a client. The gap between who she really is now and who she wants to be in known as: a) ethical shortcoming b) ethical blind spot c) moral blind spot d) virtue gap

ethical blind spot

Sally wants to follow through with her promises so she can be seen as reliable, but she struggles with keeping them. This issue is referred to as: a) lack of integrity b) ethical blind spot c) ethical dilemma d) ethical misdemeanor

ethical blind spot

As the new tax accountant you're given a large stack of your client records. They include information that your client, Jane Doe, 78, is getting cash from quilts as a side business she started outside of her Fabrics Store. It totals up to $15K in total cash quilt sales. She has continuously not reported this income for the last several years. You like Ms. Jane, however you are now in an: a) ethical blindspot b) ethical dilemma c) ethical misfortune d) immoral situation e) none of the above

ethical dilemma

"Everyone does this" is what type of reason or rationalization? a) expected or standard practice b) isolated incident c) locus of loyalty d) locus of responsibility

expected or standard practice

According to the ACFE findings what areas/sources detects the most fraud? a) external auditors/audits b) tips through a safety hotline c) management reviewing controls d) hiring ethical employees

external auditors/audits

Which of the following descriptors would best describe Kaheman's "System 1" mode of decision making? a) conscious and effortful b) conscious and effortless c) fast and automatic d) fast and explicit

fast and automatic

Which is NOT one of Kidder's Ethical Checkpoints? a) gather facts that may not be relevant in order to gain insight b) recognize that there is a moral issue c) look for a third way d) test for right-versus-wrong issues

gather facts that may not be relevant in order to gain insight

Which of the following influence an ethical workplace culture a) having an ethical code of conduct b) integrity throughout organization c) government regulations d) morals within the organization

having an ethical code of conduct

Bob, an internal auditor intern, overheard his supervisor talking over the phone boasting about how he looked under a female intern's skirt. Doing such a thing is against Bob's ethical standards. H immediately calls the company's sexual harassment hotline to report what he heard. Based on what you have learned about Rest's Model, what component of the model is Bob exhibiting when he take action on his ethical standards by reporting what he heard? a) moral sensitivity (recognition) b) moral judgment c) moral focus (motivation) d) moral character

moral character

What determines whether an individual behaves in accordance with their ethical intentions? a) moral sensitivity b) moral judgment c) moral character d) moral motivation

moral character

John is faced with an ethical dilemma and is forced to reason through his options and make the right ethical decision. This most closely resembles which component of Rest's model? a) moral sensitivity b) moral judgment c) moral focus d) moral character

moral focus

What is the most influential factor to a person's moral behavior? a) rationalization b) moral standards c) moral judgment d) none of the above

moral judgment

What is the single most influential factor in a person's moral behavior? a) moral sensitivity b) moral character c) moral judgment d) moral intensity

moral judgment

Within the cognitive-development paradigm, what is the most influential factor of an individual's moral behavior? a) moral judgment b) moral sensitivity c) ethical reasoning d) ethical behavior

moral judgment

deontology is a moral philosophy that focuses on a) the rights of individuals and motivation b) consequences of actions c) moral outcomes d) self-interest

moral outcomes

According to Rest's Four-Component Model of Ethical Decision Making, the first step in moral behavior requires that the individual can identify an situation as moral, as opposed to unmoral. Which of the four components does this step fall under? a) moral sensitivity (recognition) b) moral judgment c) moral focus (motivation) d) moral character

moral sensitivity

Our ability to identify what is moral and amoral is known as: a) moral judgment b) moral focus c) moral sensitivity d) moral character

moral sensitivity

Which of the following best defines ethics and morals? a) morals refer to an individual's own principle regarding right and wrong that may be influenced by religion or societal mores; ethics refer to rules provided by an external source b) morals are basic and fundamental beliefs that guide or motivate attitudes or actions; ethics refers to rules provided by an external source c) ethics refer to an individual's own principle regarding right and wrong that may be influenced by religion or societal mores; morals refers to rules provided by an external source d) morals refer to an individual's own principle regarding right and wrong that may be influenced by religion or societal mores; ethics refer to rules provided by an internal source

morals refer to an individual's own principle regarding right and wrong that may be influenced by religion or societal mores; ethics refer to rules provided by an external source

regulation of the accounting profession must be a) objectivity, determined, comparable, and implemented fairly and consistently b) transparent, neutral, and implemented fairly and consistently c) objectively determined, transparent, and implemented fairly and consistently d) objectively determined, rigid, and implemented fairly and consistently

objectively determined, transparent, and implemented fairly and consistently

Cognitive dissonance: a) only occurs when we are "attached" to our attitudes and beliefs b) is a consistency between our thoughts, beliefs, or attitudes c) eliminates the need to resolve contradictory beliefs d) all of the above

only occurs when we are "attached" to our attitudes and beliefs

_________ can be thought of as the generally accepted principles and standards that guide behavior in business and other organizational contexts while ________ refers to the moral atmosphere of the work environment and the level of ethical practiced within a company a) organizational ethics; organizational ethical climate b) organizational ethical climate; organizational ethics c) organizational ethics; opportunity d) opportunity; organizational ethical climate

organizational ethics; organizational ethical climate

An essential character for a CPA is a) personal integrity b) empathetic c) egoistic d) competitive

personal integrity

What can be described as a multi-level filter to process decisions? a) virtue ethics b) pillars of character c) individualism d) rationalization

pillars of character

Overall, Heinz decides it is in the best interest of society that law and order are maintained. Which of Kohlberg's Stages of Moral Development is Heinz using? a) pre-conventional b) conventional c) post-conventional d) none of the above

post-conventional

According to Lawrence Kohlberg, an individual is very self-centered in the __________ level of moral reasoning. a) Preconventional b) Conventional c) Traditional d) Postconventional

preconventional

What two sections in the AICPA Code of Conduct divided into? a) rights and responsibilities b) principles and rules c) policies and guiding principles d) rules and ethical obligations

principles and rules

Which of the following is NOT considered an intellectual virtue based on Thorne's Integrated Model of Ethical Decision Making? a) independence b) resourceful c) integrity d) objectivity

resourceful

Based on their descriptions, which of the following employees displays a behavioral indicator of fraud? a) mega, a seasoned financial analyst who is very detailed-oriented b) max, a newly hired recruiter who knows little about the organization c) john, an elderly business analyst who has lots of friends in the organization d) sally, a hardworking sales manager who insists on never taking vacations

sally, a hardworking sales manager who insists on never taking vacations

What is the second stage of moral development according to Kohlberg? a) fairness to others; commitment to loyalty in relationship b) obedience to rules; avoidance of punishment c) satisfying one's needs (egoism); follow rules only if they satisfy's ones needs d) social contracts; upholding the basic rights, values and legal contracts of society

satisfying one's needs (egoism); follow rules only if they satisfy's ones needs

Jesse, a Senior Auditor, is auditing a client and notices a flaw in the way his client records revenue. This flaw could be detrimental to his client's financial statement and has the potential to significantly drop the value of the company's shares. According to Kohlberg's Model, if Jesse places the needs of the society and abides by the law above all else when dealing with his client's mistake, what stage of reasoning is Jesse portraying? a) Stage 1 b) Stage 3 c) Stage 4 d) Stage 6

stage 4

Who are the primary beneficiaries of doing these activities; organization-wide generated data, the distribution of information throughout the firm, and the responsiveness of the organization? a) government b) investors c) creditors d) stakeholders

stakeholders

Processing information more slowly and consciously would fall into what system of Kahneman's modes of decision making? a) system 1 b) system 2 c) system 3 d) system 4

system 3

Which of the following best describes the difference between the moral philosophies of Teleology and Deontology? a) there is no difference, both deontologists and teleologists believe that an act is considered morally right or acceptable if it produces some desired result b) deontological philosophies include egoism and utilitarianism; teleological philosophies include rights theory and justice c) teleologists believe that an act is considered morally right or acceptable if it produces some desired result; deontologists focus on the rights of individuals and motivation rather than the consequences d) teleological philosophies include egoism and rights theory; deontological philosophies includes utilitarianism and justice

teleologists believe that an act is considered morally right or acceptable if it produces some desired result; deontologists focus on the rights of individuals and motivation rather than the consequences

In the trials for those involved in the WorldCom scandal, what was the judge's statement regarding Betty Vinson's behavior? a) that she was one of the main organizers of the fraud scandal and therefore was subject to imprisonment b) that because her participation in the conspiracy was not as extensive as others, she would not be sentenced to imprisonment c) that although she was described as a genuinely good person and played a lesser part in the scandal, had she refused to do what she was asked by her superior the conspiracy might have been nipped in the bud d) that although she contributed to the conspiracy and could therefore be subject to imprisonment because her role was minor she was instead sentenced to probation for three years

that although she was described as a genuinely good person and played a lesser part in the scandal, had she refused to do what she was asked by her superior the conspiracy might have been nipped in the bud

Which of the following scenarios depicts a person with integrity? a) an accountant succumbs to pressures from upper management to record expenditures incorrectly b) an accountant noticed large transactions that have been posted by upper management but ignored it c) the CFO of a company asked an accountant to create false invoices to boost income, but the accountant refused because it was the right thing to do d) the CFO of a company asked an accountant to expense the assets instead of capitalizing them as they should be, and the accountant did it without question

the CFO of a company asked an accountant to create false invoices to boost income, but the accountant refused because it was the right thing to do

ethical relativism is a) the process followed to decide on a course of action is more important than achieving the end goal b) the theory that holds that morality is relative to the norms of one's culture c) laws create a minimum set of standards that ethical people usually go beyond d) the ability to reflect on alternative courses of action, persevere and carry out moral action diligently

the theory that holds that morality is relative to the norms of one's culture

In Regulation of the Accounting Profession, the ethical behavior of the professional accountant is the? a) to follow religious behavior b) optimal quality of employees c) ultimate guarantee of goods, service, and quality d) all of the above

ultimate guarantee of goods, service, and quality

Which of the following philosophies follows the idea of "greatest good to greatest number"? a) utilitarianism b) egoism c) right theory d) justice

utilitarianism

What are the basic and fundamental belief that guide or motivate attitudes or actions? a) values b) ethics c) integrity d) manners

values

All of the following statements are true *except*: a) values of a profession are embedded in its code of ethics b) values are basic beliefs that guide or motivate attitudes or actions c) values create a minimum set of standards that ethical people usually go beyond d) from values, the "golden rule" is derived, which prescribes that we should treat others the way we want to be treated

values create a minimum set of standards that ethical people usually go beyond

Identify one of the questions the text recommends when trying to resolve a moral issue a) which of the possible courses of action will result in leaving work on time? b) how long will it take to discover I made the wrong choice? c) what, if any, are the consequences of hiding the results? d) which course of action advances the common good?

which course of action advances the common good?

What is the largest cost, by percentage, that companies face due to incivility in the workplace? a) decline in commitment to the organization b) worrying about the incident and losing work time c) intentionally decreased work effort d) losing work tie by avoiding the offender

worrying about the incident and losing work time