Deck 1: Ethics Expectations.

Question 1

A value that is almost universally respected by stakeholder groups is a

A) super norm.
B) alfa norm.
C) value norm.
D) hypernorm.
E) general norm.

Answer 1

hypernorm.

Question 2

Not reporting environmental issues is an example of

A) lack of transparency.
B) lack of integrity.
C) lack of accuracy.
D) All of these are correct.
E) None of these are correct.

Answer 2

lack of integrity.

Question 3

Most large corporations do not consider which these risks in a broad and comprehensive way?

A) operational risks
B) reputational risks
C) credit risks
D) market risks
E) ethics risks

Answer 3

ethics risks

Question 4

Which of the following would be a key control function of the Board of Directors?

A) to set guidance and boundaries
B) to appoint the CEO
C) to approve the sale of company's assets
D) to decide on the company's auditor
E) All of these are correct.

Question 5

Since the mid-1990s, both management and auditors have become increasingly

A) profit management oriented.
B) ethics oriented.
C) value management oriented.
D) risk management oriented.
E) ethics oriented and risk management oriented.

Question 6

Ethical corporate behavior is expected to lead to

A) higher profitability in the short-term.
B) higher profitability both in the short-term and long-term.
C) lower profitability in the long-term.
D) higher profitability in the long-term.
E) lower profitability both in the short-term and long-term.

Question 7

Which of the following is a fundamental factor in having an effective ethical corporate culture?

A) tone at the top (i.e., ethical leadership)
B) efficient oversight by the company's Board of Directors
C) workplace ethics
D) code of conduct
E) tone at the top and workplace ethics

Question 8

Professional accountants, in their fiduciary role, owe their primary loyalty to

A) the accounting profession.
B) the client.
C) the general public.
D) government regulations.
E) All of these are correct.

Question 9

Which organization is developing an international code of conduct for professional accountant?

A) International Accounting Standards Board
B) European Federation of Accountants
C) Financial Accounting Standards Board
D) Public Accounting Oversight Board
E) International Federation of Accountants

Question 10

Incomplete disclosure of the company's revenue recognition policy is an example of

A) lack of transparency.
B) lack of integrity.
C) lack of accuracy.
D) All of these are correct.
E) None of these are correct.

Question 11

Which of the following are examples of ethics risks faced by employees?

A) honesty and integrity
B) fairness and compassion
C) integrity and responsibility
D) fairness and integrity
E) responsibility and honesty

Question 12

Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts?

A) corporate annual report
B) corporate social responsibility report
C) corporate quarterly report
D) corporate stakeholder report
E) corporate ethics committee report

Question 13

Companies attempt to manage the risk of something happening that will have a negative or positive impact on the company's objectives, such as

A) credit risks.
B) litigation risk.
C) reputation risk.
D) ethics risks.
E) All of these are correct.

Question 14

Which philosophical approach requires that an ethical decision depend upon the duty, rights, and justice involved?

A) consequentialism
B) virtue ethics
C) duty ethics
D) righteousness
E) deontology

Question 15

Which of the following are determinants of reputation?

A) trustworthiness and responsibility
B) credibility, responsibility and relevance
C) responsibility and impartiality
D) relevance and impartiality
E) relevance, credibility and responsibility

Question 16

Effective crisis management could represent

A) an opportunity to avoid costs.
B) an opportunity to change employees' perspectives on risk.
C) an opportunity to enhance the company's reputation.
D) All of these are correct.
E) None of these are correct.

Question 17

Which of the following is NOT a trend described in Chapter 1 as having an impact on the ethics of business?

A) directors' legal liability
B) management's stated intention to protect reputation
C) auditors' legal liability
D) management's assertions to shareholders on the adequacy of internal controls
E) management's stated intention to manage risk

Question 18

Examining the interests of stakeholders is probably required for

A) high short-term profits.
B) optimal medium and longer-term profits.
C) continuing support from stakeholder groups.
D) effective risk management.
E) All of these are correct.

Question 19

The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as the

A) credibility gap.
B) expectations gap.
C) audit gap.
D) stewardship gap.
E) None of these are correct.

Question 20

The Modified Moral Standards Approach focuses on which of the following dimensions of the impact of a proposed action?

A) net benefit to society, fair to all stakeholders, whether it is right, and virtues expected
B) net benefit to society and whether it is legal
C) net benefit to society, fair to all stakeholders, and whether it is legal
D) fair to most stakeholders and whether it is right
E) net benefit to society, fair to most stakeholders, and whether it is right