Question 1

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 these

Accepted Answer

A

Question 2

When Sally is asked why she should share her toys with her sister, she responds by saying "Because my mom says I have to and if I don't I'll go to time-out." In which stage of moral development is Sally?
A) Conventional Morality
B) Fairness to Others
C) Postconventional Morality
D) Preconventional Morality

Accepted Answer

Sally's response is focused on avoiding punishment and following rules, which are characteristics of the preconventional stage.

Question 3

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 that individuals make decisions based on what they believe will result in the least negative consequences for themselves. They are not yet able to think about the perspectives of others or to consider broader ethical principles.

Question 4

James Rest's model of ethical action involves four components inherent to the ethical decision-making process. Which of the following relates to a person's moral judgment?
A) Interpreting a situation as a moral dilemma
B) Willingness to place ethical values ahead of non-ethical values
C) Intention to act ethically aligning to his values
D) Outcome of one's prescriptive reasoning

Accepted Answer

The outcome of prescriptive reasoning involves a person's moral judgment and is the result of weighing the ethical issues at stake in a situation and determining the appropriate action. The other options relate to other components of the ethical decision-making process, such as recognizing a moral dilemma (A), prioritizing ethical values (B), and intending to act ethically (C).

Question 5

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

The answer of The actions of Sherron Watkins in the...

Question 6

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

CPAs (Certified Public Accountants) are professionals who are expected to adhere to high ethical standards and make decisions based on established rules and the greater good for society. This aligns with Kohlberg's stages of moral development, specifically stages 3 and 4. Stage 3 focuses on interpersonal accord and conformity, while stage 4 emphasizes authority and maintaining social order. These stages reflect the ethical reasoning and decision-making required in the accounting profession.

Question 7

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 these

Accepted Answer

Heinz's motivation was multifaceted. He loved his wife, he couldn't afford the drug, and he was afraid she would die without it.

Question 8

In Thorne's model of ethical decision making, the instrumental virtues relate to:
A) Moral sensitivity
B) Ethical reasoning
C) Ethical motivation
D) Ethical character

Accepted Answer

The answer of In Thorne's model of ethical decision making,...

Question 9

A client asks his accountant to ignore a mistake which overstated the accounts receivable account. The accountant decides that the accounts receivable account has to be corrected to state the correct amount. The accountant makes his decision based on his duty to society, respect for authority, and maintaining the social order. Which stage of Kohlberg' Stages of Moral Development is the accounting reasoning?
A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Accepted Answer

The accountant's decision-making is at Stage 4 of Kohlberg's Stages of Moral Development, which is the stage of social order and obedience to authority. The accountant is not considering personal gain (which would be at Stage 2) or seeking approval from others (which would be at Stage 3), but rather is focused on fulfilling his duty to society and following the rules and expectations of authority figures.

Question 10

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 11

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 these

Accepted Answer

The cognitive development approach focuses on the thought process or mental activities that individuals use to make sense of experience, including moral development. It does not specifically refer to the method of moral reasoning or exercise of professional judgment in decision making.

Question 12

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 a theory of moral development that postulates that individuals progress through a series of stages that describe the development of moral reasoning. These stages are arranged into three levels: pre-conventional, conventional, and post-conventional. Each level is characterized by different patterns of thought and reasoning about moral issues.

Question 13

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 these

Accepted Answer

The answer of Individuals who reason at stage 6 incorporate...

Question 14

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 fall into Kohlberg's Stage 3, which emphasizes the importance of maintaining good relationships and upholding social norms. Heinz believes that stealing is wrong, but he is also motivated by a desire to do everything he can to save his wife, including breaking the law. This shows that he is beginning to understand the perspective of others and the role of social expectations in guiding behavior.

Question 15

Yvonne is preparing a tax return for Jack. Jack wants to claim his nephew as a dependent even though he does not meet the criteria. Jack says if Yvonne does not list his nephew as a dependent, he will fire her and find a new tax accountant. Yvonne refuses because it is illegal to claim a dependent that does not meet the qualifications. Based on Yvonne's decision, she is likely reasoning in which stage of Kohlberg's moral development model?
A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 5

Accepted Answer

Yvonne is reasoning in Stage 4 of Kohlberg's model, which is the "law and order" stage. She understands that claiming an ineligible dependent is illegal and goes against the rules and regulations set forth by the government. She is prioritizing the importance of following the law and doing what is right over potentially losing a client.

Question 16

In reference to Rest's four-component Model of Morality, which component reflects an individual's willingness to place ethical values ahead of non-ethical values that relate to self-interest?
A) Moral Character
B) Moral Motivation
C) Moral Sympathy
D) Moral Judgment

Accepted Answer

Moral Motivation is the component that reflects an individual's willingness to place ethical values ahead of non-ethical values that relate to self-interest. Moral Character refers to an individual's habits of behavior that reflect ethical principles, Moral Sympathy is the capacity to imagine and be sensitive to the experiences of others, and Moral Judgment is the ability to reason about right and wrong.

Question 17

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 18

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 completing the assignment on one's own lacks moral sensitivity, as it disregards the academic integrity and honesty that is expected of students. It also violates Rest's model of morality as it does not consider the moral implications and consequences of one's actions.

Question 19

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 these

Accepted Answer

Rest's "Four Component Model of Morality" describes the process of ethical action, which includes moral sensitivity, moral judgment, moral motivation, and moral character, linking it to one's level of moral development.

Question 20

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" combines both moral development and virtue. It is a model that helps individuals make ethical decisions by considering the virtues they possess and the stage of moral development they are currently in. Therefore, option D is the best choice. Option A is incorrect because Thorne's model is not solely focused on moral development, although it does consider it. Option B is incorrect because it only focuses on the AICPA Code of Professional Conduct, which is not the only influence on ethical decision making. Option C is incorrect because while Thorne's model does consider virtue, it also incorporates moral development.

Quiz 2: Cognitive Processes and Ethical Decision Making in Accounting

The ethical domain in accounting and auditing refers to:

When Sally is asked why she should share her toys with her sister, she responds by saying "Because my mom says I have to and if I don't I'll go to time-out." In which stage of moral development is Sally?

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

James Rest's model of ethical action involves four components inherent to the ethical decision-making process. Which of the following relates to a person's moral judgment?

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

The results of studies indicate that CPAs reason primarily at:

Heinz stole the drug because:

In Thorne's model of ethical decision making, the instrumental virtues relate to:

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

The cognitive development approach refers to:

Kohlberg's model can best be described as:

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

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

In reference to Rest's four-component Model of Morality, which component reflects an individual's willingness to place ethical values ahead of non-ethical values that relate to self-interest?

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

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:

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

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