Question 1

The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for:
A)Moral sensitivity
B)Egoism
C)Enlightened egoism
D)Professional skepticism

Accepted Answer

D

Question 2

The cognitive development approach refers to:
A)The thought process followed in one's moral development
B)The method of moral reasoning used in decision making
C)The exercise of professional judgment in decision making
D)All of the above

Accepted Answer

The cognitive development approach specifically refers to the development of thought processes and reasoning abilities, particularly in relation to moral decision-making. Therefore, options B and C are incorrect in this context.

Question 3

Kohlberg's model can best be described as:
A)The various phases in one's moral development and related levels of moral reasoning
B)A model of ethical action that is based on one's moral development
C)A predictive tool to determine how a person will reason ethically based on one's moral development
D)A model of age-specific levels of moral reasoning

Accepted Answer

Kohlberg's model is based on the various phases of moral development and related levels of moral reasoning. It explains how individuals progress through six stages of moral development, beginning with obedience and punishment orientation and culminating in universal ethical principles. Therefore, option A is the best choice.

Question 4

In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages?
A)Stage 1
B)Stage 2
C)Stage 3
D)Stage 4

Accepted Answer

Heinz's actions in trying to steal the drug to save his wife's life demonstrates a stage 3 mentality of seeking approval from others and trying to maintain positive relationships. He is motivated by the desire to preserve his relationship with his wife and gain respect from others for doing everything possible to save her.

Question 5

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:
A)Satisfaction of one's needs
B)Acting in the best interests of others
C)Upholding the rights, values, and legal contracts of society
D)Acting based on universal principles

Accepted Answer

In stage 3 of Kohlberg's model, ethical reasoning is motivated by acting in the best interests of others, focusing on interpersonal relationships and conformity to social norms for approval.

Question 6

Thorne's "Integrated Model of Ethical Decision Making" can best be described as:
A)A depiction of a model of moral development
B)A depiction of how the Principles in the AICPA Code of Professional Conduct influences decision making
C)A model of the role of virtue in decision making
D)A model of the role of moral development and virtue in decision making

Accepted Answer

Thorne's "Integrated Model of Ethical Decision Making" is a model that considers both moral development and virtue in decision making. It incorporates various stages of moral development and emphasizes the importance of virtues such as integrity, honesty, and fairness. While the AICPA Code of Professional Conduct may be one factor influencing decision making, it is not the sole focus of Thorne's model.

Question 7

In the DigitPrint case, at which stage does Wally Wonderful reason if he insists on compliance with GAAP?
A)Stage 2
B)Stage 3
C)Stage 4
D)Stage 5

Accepted Answer

Wally Wonderful reasons at Stage 4 if he insists on compliance with GAAP, as this stage involves maintaining social order by following laws and rules.

Question 8

An ethical tone at the top can best be described as:
A)Establishing an ethical culture within an organization
B)Honesty exercised by top management
C)Consistency in decision making
D)Exercising professional skepticism when approaching an audit

Accepted Answer

An ethical tone at the top refers to the establishment of an ethical culture within an organization through the actions and behaviors of top management. It is the overall attitude and behavior of senior leadership that sets the tone for the rest of the organization. Honesty, consistency in decision making, and exercising professional skepticism are important components of maintaining an ethical tone, but the broader goal is to establish a culture of ethical behavior throughout the organization.

Question 9

Professional skepticism means:
A)Approaching the audit with an independent attitude
B)Approaching the audit with a questioning mind
C)Being objective in decision making
D)Maintaining one's integrity

Accepted Answer

Professional skepticism means approaching the audit with a questioning mind and being alert to the possibility of misstatements. While maintaining independence, objectivity, and integrity are important parts of an auditor's responsibilities, they are not the primary principles of professional skepticism.

Question 10

Individuals who reason at stage 6 incorporate ethical reasoning based on:
A)The morality of law and duty to the social order
B)A rational calculation of benefits and harms to society
C)Universal ethical principles
D)All of the above

Accepted Answer

Individuals who reason at stage 6 incorporate ethical reasoning based on universal ethical principles, which are not dependent on laws or social orders, and go beyond a rational calculation of benefits and harms.

Question 11

Assume you were assigned a term paper and decided to surf the web to identify a provider of papers for a fee.You chose what you thought was the best paper available.With respect to Rest's model of morality it can be said that:
A)Your actions lack moral sensitivity
B)You are reasoning at stage 1
C)You are making judgments based on the utilitarian method
D)You lack the courage of your convictions

Accepted Answer

Choosing to purchase a paper for a fee instead of writing your own paper shows a lack of moral sensitivity because it involves academic dishonesty and violates ethical principles.

Question 12

The failure of Andersen's audit of Enron can be attributed to all of the following except for:
A)Failure to approach the audit with professional skepticism
B)Lack of audit independence
C)Failure to assign a sufficient number of staff to the audit
D)Having a conflict of interests

Accepted Answer

While there were multiple reasons for the failure of Andersen's audit of Enron, the failure to assign a sufficient number of staff to the audit is not one of them. Andersen actually had a large team of auditors working on the Enron audit, but they failed to uncover the fraud due to other factors such as lack of independence, a conflict of interests, and a failure to approach the audit with professional skepticism.

Question 13

Each of the following is an element of Rest's model of morality except for:
A)Moral sensitivity
B)One's stage of ethical development
C)Moral motivation
D)One's courage in making decisions

Accepted Answer

Rest's model of morality includes moral sensitivity, moral judgment, moral motivation, and moral character, but not one's stage of ethical development.

Question 14

In stage 1 of Kohlberg's model, ethical reasoning is motivated by:
A)Fear of punishment
B)Satisfaction of one's needs
C)Following the law
D)Acting based on universal ethical principles

Accepted Answer

In stage 1 of Kohlberg's model, ethical reasoning is motivated by fear of punishment. This means individuals will follow rules and laws to avoid punishment or negative consequences. They do not consider the impact of their actions on others or society as a whole.

Question 15

The results of studies indicate that CPAs reason primarily at:
A)Stages 1 and 2
B)Stages 2 and 3
C)Stages 3 and 4
D)Stages 4 and 5

Accepted Answer

Studies have shown that CPAs primarily reason at Stages 3 and 4, which involve considering multiple perspectives, analyzing information, and generating alternatives.

Question 16

Professional judgment in accounting includes each of the following attributes except for:
A)Exercising due care in carrying out one's professional responsibilities
B)Maintaining one's objectivity in decision making
C)Maintaining one's integrity in decision making
D)Acting in accordance with the moral point of view

Accepted Answer

Acting in accordance with the moral point of view is actually an attribute of professional judgment in accounting. Therefore, the attribute that is not included in professional judgment in accounting is not D, but instead is something else that is not listed.

Question 17

Rest's "Four Component Model of Morality" can best be described as:
A)A description of the values that influence ethical decision making
B)A model of the relationship between ethical action and one's level of moral development
C)A model of moral judgment based on one's possession of certain virtues of behavior
D)All of the above

Accepted Answer

Rest's "Four Component Model of Morality" describes the process of ethical decision-making and action, focusing on moral sensitivity, moral judgment, moral motivation, and moral character, rather than just values or virtues.

Question 18

The ethical domain in accounting and auditing refers to:
A)The important constituent groups affected by accounting and auditing work
B)The stages of the moral development of accountants and auditors
C)The decision making process followed by accountants and auditors
D)All of the above

Accepted Answer

The answer of The ethical domain in accounting and auditing...

Question 19

In stage 5 of Kohlberg's model, ethical reasoning is motivated by:
A)Acting in the best interests of others
B)Following the law
C)Upholding the rights, values, and legal contracts of society
D)Acting based on universal principles

Accepted Answer

In stage 5 of Kohlberg's model, ethical reasoning is motivated by upholding the rights, values, and legal contracts of society, emphasizing the importance of laws that are grounded in rational and social contracts.

Question 20

Heinz stole the drug because:
A)He loved his wife
B)He couldn't come up with all the money to pay for it
C)He was afraid his wife would die without the drug
D)All of the above

Accepted Answer

Heinz stole the drug because he loved his wife and was afraid she would die without it. Additionally, he couldn't come up with all the money to pay for it, which added to his desperation. Therefore, all of the above are reasons for his actions.

Quiz 2: Accountants Ethical Decision Process and Professional Judgment

The actions of Sherron Watkins in the Enron case appears to reflect each of the following except for:

The cognitive development approach refers to:

Kohlberg's model can best be described as:

In the "Heinz and the Drug" case described in the chapter, Heinz's actions falls into which of Kohlberg's stages?

In stage 3 of Kohlberg's model, ethical reasoning is motivated by:

Thorne's "Integrated Model of Ethical Decision Making" can best be described as:

In the DigitPrint case, at which stage does Wally Wonderful reason if he insists on compliance with GAAP?

An ethical tone at the top can best be described as:

Professional skepticism means:

Individuals who reason at stage 6 incorporate ethical reasoning based on:

Assume you were assigned a term paper and decided to surf the web to identify a provider of papers for a fee.You chose what you thought was the best paper available.With respect to Rest's model of morality it can be said that:

The failure of Andersen's audit of Enron can be attributed to all of the following except for:

Each of the following is an element of Rest's model of morality except for:

In stage 1 of Kohlberg's model, ethical reasoning is motivated by:

The results of studies indicate that CPAs reason primarily at:

Professional judgment in accounting includes each of the following attributes except for:

Rest's "Four Component Model of Morality" can best be described as:

The ethical domain in accounting and auditing refers to:

In stage 5 of Kohlberg's model, ethical reasoning is motivated by:

Heinz stole the drug because: