41.
Strong corporate governance relies on a strong board of directors. Which of the following
would be a strong candidate to be a board director for XYZ, Inc.?
42.
Which of the following is NOT an element of internal control over financial reporting?
43.
Under the Sarbanes-Oxley Act, which of the following bodies must contain members that
are 100% independent of management?
44.
To ensure audit committee independence, the committee should meet separately with
each of the following groups except:
45.
Which of the following is NOT one of the audit committee’s responsibilities?
46.
External auditor communications with the audit committee include each of the following
except:
47.
A strong and effective internal control environment can be enhanced by:
48.
Section 302 of the Sarbanes-Oxley Act requires that management:
49.
Which of the following is NOT a component of an effective internal control environment in
COSO Internal Control – Integrated Framework?
50.
Agency theory can best be described as:
51.
Each of the following is an element of agency costs except:
52.
Backdating of stock options is unethical because:
53.
Compensation of executives has soared over the last forty plus years to more than 400
times the pay for average workers. Remedies to rein in executive compensation include all
but:
54.
The term disgorgement means:
55.
As a manager in her firm, Lucy concerns herself with the effectiveness of internal controls.
Her main focus is how efficient and effective the company’s internal controls are over
time. Which component of internal control is Lucy engaging in?
56.
The fraud at Groupon occurred because the company:
57.
The 2012 State of Compliance Study of PwC indicates that:
58.
Has SOX accomplished its intended goal of reliable financial reporting by public
companies?
59.
DeGeorge thinks that “corporations have a moral obligation not to harm.” Which of the
following would be one of his criteria for morally permitted whistleblowing?
60.
Research by Miceli and Near indicates that:
61.
What is the significance of the Menendez v Halliburton, Inc.?
62.
With respect to whistleblowing, the Sarbanes-Oxley Act:
63.
The SEC has increased focus on identifying and penalizing misstatements in public
company financials. What is one method that the SEC is using to identify companies,
CEOs, and CFOs that are misstating financial statements?
64.
The reporting requirements for fraud are detailed in Section 10A of the Securities
Exchange Act of 1934. Which of the following steps are NOT part of a prescribed process
that should be followed in deciding whether to report fraud?
65.
The 2010 Dodd-Frank Act includes additional incentives for whistleblowers. What is the
act’s effect on whistleblowing by accountants?
66.
Under certain circumstances, internal accountants are eligible to become Dodd-Frank
whistleblowers. Which of the following is not one of those conditions?
67.
In the Parable of Sadhu case, Bowen T. McCoy’s friend Stephen summed up the dilemma
by saying:
68.
What is the ethical issue in the Rite Aid Inventory Surplus Fraud case?
69.
The primary ethical issue in United Thermostatic Controls is:
70.
The key fraud issue in the Franklin Industries Whistleblowing Case is:
71.
What was the result of the annual inventory audit of the inventory shrinkage problem at
Walmart?
72.
The Bennie and the Jets case centers on utility rates and the issue of:
73.
The Olympus case was unique from a corporate governance perspective because it deals
with:
74.
What non GAAP accounting method did Tony Menendez cite in blowing the whistle on
Halliburton?
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75.
In the Bhopal case, in evaluating its exposure to possible future liability due to technology
failures, Union Carbide used which of the following concepts?
76.
Jodie Fisher’s allegations of sexual harassment are made believable due to Mark Hurd’s:
Essay Questions
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77.
Analyze the reaction of Toyota from an ethical perspective to disclosures that occurred in
late 2009 and early 2010 that the accelerator in some brands might get stuck and result in
unintended acceleration of the car. How does Toyota’s reaction relate to that of Ford with
the Pinto and Johnson & Johnson with the Tylenol poisoning?