Chapter 01 Ethical Reasoning: Implications for Accounting Answer
Key
Multiple Choice Questions
1.
What is the common characteristic of Aristotle’s virtues and ethical standards for CPAs?
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?
3.
Which of the following situations would be considered ethical?
4.
Which of the following characteristics does NOT describe the importance of integrity in
decision making?
5.
Which of the following characteristics does NOT describe the behavior of Cynthia Cooper
in the WorldCom fraud?
6.
The ancient Greeks thought of the virtues as characteristics of behavior that:
7.
Which of the following elements does NOT make up an integral part of what is meant by
“ethics”?
8.
Ethical relativism can best be described as a:
9.
Which of the following is
NOT
a pillar of character according to the Josephson Institute?
10.
Which of the following is NOT an element of trustworthiness according to the Six Pillars of
Character?
11.
An accountant who blows the whistle on financial wrongdoing by his/her employer by
going outside the entity violates:
12.
Social networking is the norm for many workers, and some workers spend at least 30
percent of their workday linked up to one or more networks. The Ethics Resource Center
conducted a survey in which social networkers admitted each of the following except:
13.
Which of following is false of active social networkers?
14.
Respect is an important character of behavior because:
15.
Responsibility goes hand in hand with:
16.
Treating other fairly encompasses treating them:
17.
Which of the following characteristics is NOT part of behaving with empathy?
18.
If one’s reputation is tainted it may create a:
19.
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:
20.
Objectivity requires that a CPA should:
21.
The Independence Principle in the AICPA Code applies to:
22.
A CPA would violate the Due Care Principle if he/she:
23.
Aristotle believed that __________ always preceded the choice of action.
24.
The method of ethical reasoning that deals with making decisions after considering the
interests of others is:
25.
The method of ethical reasoning that evaluates actions in terms of harms and benefits is:
26.
The method of ethical reasoning that requires selecting the correct moral rule that
produces the greatest benefits over harms is:
27.
Which of the following elements is not an integral part of Rights Theory?
28.
The ethical reasoning method that is based on treating equals, equally and unequals,
unequally is:
29.
Teleology deals with:
30.
Deontology deals with:
31.
The biggest problem in implementing a utilitarian approach to decision making is:
32.
The biggest problem in implementing a rights approach to decision making is:
33.
The biggest problem in applying virtue theory to decision making is:
34.
The credibility standard in the Statement of Ethical Professional Practice of the IMA
requires that an accounting professional should:
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:
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:
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?
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:
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:
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: