Ryan Keaton chapter 1 accounting ethics

Responsibility goes hand in hand with: A. Respect B. Loyalty C. Courage D. Accountability

D. Accountability

The method of ethical reasoning that evaluates actions in terms of harms and benefits is: A. Act Utilitarianism B. Rights Theory C. Justice D. Virtue

A. Act Utilitarianism

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 B. Not allow Sally to use the dictionary because she should know enough English to get by C. Allow the other students to bring in some tool to give them an advantage D. None of these

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

Empathy entails all of the following characteristics of behavior except for: A. Being loyal to one's friends B. Being understanding of one's friends C. Being sensitive to the feelings of one's friends D. All of these

A. Being loyal to one's friends

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 B. Contacts his/her immediate superior who says to forget about the matter C. Informs the external auditors who tell him/her to inform the appropriate authorities D. Believes there has been an ethical violation

A. Believes there is a clear violation of the law

In the Capitalization versus Expensing case the main ethical issue is whether Gloria Hernandez should A. Capitalize or expense $1 million of expenditures B. Report her superiors actions to the CEO C. Talk to the Audit Committee D. Become a whistle blower

A. Capitalize or expense $1 million of expenditures

Teleology deals with A. Consequences of actions B. Fairness to others C. Respecting the rights of others D. Following prescribed virtue characteristics

A. Consequences of actions

The best restatement of Kant's categorical imperative is: A. Do to others as you would have everyone do unto you B. Consider others needs before you act C. That those with a smaller stake should have a smaller say compared to those with a bigger stake. D. Don't be cruel until someone is cruel to you

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

The method of ethical reasoning that does not deal with making decisions after considering the interests of others is: A. Egoism B. Enlightened Egoism C. Utilitarianism D. Rights Theory

A. Egoism

Thomas Jefferson's writing in the preamble of the Declarations of Independence is a perfect example of what theory? A. Rights Theory B. Virtue Theories C. Consequentialist Theories D. Applied Ethics

A. Rights Theory

Utilitarian philosophers are divided into two types: act utilitarian and A. Rule utilitarian B. Individual utilitarian C. Ethical utilitarian D. Benefit utilitarian

A. Rule utilitarian

A CPA would violate the Due Care Principle if he/she: A. Undertook a professional engagement without having the requisite background, knowledge and experience B. Discloses confidential information about a client C. Violates the Public Interest Principle D. Performs tax services for an audit client without audit committee approval

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

The country with the highest Uncertainty Avoidance is A. United States B. United Kingdom C. India D. China

A. United States

Many critics say the biggest fault with deontological theories is A. no clear way to resolve conflicts between moral duties B. the separation of consequences from duties C. the requirement to respect people as human beings D. not being able to treat people as only a means

A. no clear way to resolve conflicts between moral duties

Each of the following characteristics describes the importance of integrity in decision making except for: A. Acting out of moral principle B. Being loyal to one's superior C. Having the courage to do the right thing D. Not subordinating professional judgment to others

B. Being loyal to one's superior

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: A. Accuse the alleged cheater of cheating in front of all the other players B. Consider what might happen if he accuses the player of cheating and he is wrong C. Speak to the alleged cheater during a regularly scheduled break and tell him not to do it again D. Forget about the whole matter

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

The motive of "duty" is most associated with. A. Egoism B. Deontology C. Utilitarianism D. Justice

B. Deontology

The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over harms is: A. Act Utilitarianism B. Rule Utilitarianism C. Rights Theory D. Justice

B. Rule Utilitarianism

The most likely rationalization a student might use to justify cheating on an exam is: A. Ethical relativism B. Situational ethics C. Deontological ethics D. Teleological ethics

B. Situational ethics

When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting or financial reporting manner? A. If the CFO does not agree to correct the financial statements B. The CEO supports the CFO and does not agree to correct the financial statements C. The external auditors support the CEO and do not agree to correct the financial statements D. The audit committee should always be the first to be informed about such a difference of opinion

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

According to Kant, individuals may be treated as: A. means to an end B. an end and never as a means only C. other mammals since we are all equal D. an end and never as a means, in some circumstances

B. an end and never as a means only

The Independence Principle in the AICPA Code applies to: A. All accountants and auditors B. All CPAs regardless of professional services C. All CPAs who render attestation services D. All members of the audit committee

C. All CPAs who render attestation services

Aristotle believed that __________ always preceded the choice of action. A. Empathy B. Due Care C. Deliberation D. Loyalty

C. Deliberation

Each of the following is an element of trustworthiness according to the Josephson Institute except for: A. Reliability B. Loyalty C. Fairness D. Honesty

C. Fairness

What is the one virtue that people should want in a boss to trust the boss? A. Diligence B. Commitment C. Honesty D. Sense of humor

C. Honesty

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: A . Tell the other staff members that he will use the time he saves on his budget to help them to meet their budget by picking up their slack B. Approach his supervisor to discuss the matter C. Ignore what is being asked and go about his work as he has always done D. Tell the other staff members to mind their own business

C. Ignore what is being asked and go about his work as he has always done

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: A. Integrity B. Due care C. Independence D. Responsibility

C. Independence

Virtue ethics emphasizes development of good habits of character. What should be the greatest reward of practicing good habits of character, according to MacIntyre? A. External rewards B. Money C. Internal rewards D. Authority of rules

C. Internal rewards

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? A. Go along with the manager's request B. Talk to others in the company to determine how they handled such situations C. Refuse to go along with the request D. Inform the audit committee

C. Refuse to go along with the request

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 these

C. Students who cheated

The Public Interest Principle in the AICPA Code of Professional Conduct recognizes: A. The importance of integrity in decision making B. The importance of stakeholder groups C. The need to be independent of the client D. The importance of exercising objectivity in decision making

C. The need to be independent of the client

In the Giles and Regas case, the primary ethical issue can be stated as: A. Whether a subordinate should blow the whistle on a superior who has violated ethical policy B. Whether two staff members of the same rank should be allowed to date C. Whether a superior should become involved in a dating relationship with a subordinate D.Whether a student should renege on the acceptance of an offer from one firm after receiving an offer from a second firm

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

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 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 these

D. All of these

The biggest problem in applying virtue theory to decision making is: A. It can be difficult to evaluate the effect of virtues on others in decision making B. It relies on moral absolutes in decision making C. It can be difficult to determine virtues to distinguish equals from unequal claims in decision making D. Conflicts between virtues may make decision making more difficult

D. Conflicts between virtues may make decision making more difficult

Kevin Lowe's ethical dilemma in the Eating Time case can best be described as whether to: A. Date another staff member of the CPA firm B. Inform his supervisor about a lack of diligence of other staff accountants C. Quit his job because he can't meet the firm's expected quality of work D. Devote time on an audit and not charge it to the job

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

The noted researcher who studied how values in the workplace are influenced by culture is: A. Thomas Hobbes B. Jeremy Bentham C. Aristotle D. Geert Hofstede

D. Geert Hofstede

The most important duty of public accounting is to the: A. Securities Exchange Commission B. Current stockholders C. Management D. Investing public

D. Investing public

An important modern contributor to the theory of utilitarianism is: A. Plato B. John Rawls C. Immanuel Kant D. Jeremy Bentham

D. Jeremy Bentham

Each of the following is a pillar of character according to the Josephson Institute except for: A. Caring B. Citizenship C. Respect D. Judgmental

D. Judgmental

The country with the highest Power Distance score is A. United States B. United Kingdom C. Japan D. Russia

D. Russia