Deck 16: Professionalism, Ethics, and Career Planning

Question 1

Which of the following best pairs a characteristic of a professional with an example of that characteristic?

A)Communicates effectively, selects software using the weighted-rating model
B)Integrates knowledge from many disciplines, completes the steps in the systems development life cycle
C)Communicates effectively, analyzes internal controls in the sales / collection process
D)Integrates knowledge from many disciplines, gives two examples of COSO documents

Answer 1

B

Question 2

According to Bell, a professional integrates knowledge from many disciplines. Accounting information systems integrates knowledge from:

A)Accounting and finance.
B)Management and computer information systems.
C)Both A and B.
D)Neither A nor B.

Answer 2

C

Question 3

The PCAOB has:

A)Eliminated autonomy of practice in the accounting profession.
B)Limited autonomy of practice in the accounting profession.
C)Had no effect on autonomy of practice in the accounting profession.
D)Worked with FASB to enhance autonomy of practice in the accounting profession.

Answer 3

B

Question 4

Which of the following pairs provides examples of integrating knowledge from other disciplines in accounting?

A)Completes the steps in the systems development life cycle, applies expectancy theory to improve motivation
B)Selects software using the weighted-rating model, analyzes internal controls in the sales / collection process
C)Analyzes internal controls in the sales / collection process, applies expectancy theory to improve motivation
D)Prepares a schedule of cash receipts in Excel, gives two examples of COSO documents

Question 5

Bell's characteristics of a professional include the ability to think in which of the following ways?

A)Rationally
B)Logically
C)Coherently
D)All of the above

Question 6

Which of the following pairs provides examples of appropriately using technical knowledge in accounting?

A)Closing nominal accounts at the end of the year, reconciling a bank statement
B)Closing nominal accounts at the end of the year, using Steps for Better Thinking
C)Reconciling a bank statement, using Steps for Better Thinking
D)Adjusting the accounts for accrued revenue, applying complex FASB standards

Question 7

Which of the following statements best applies a characteristic of a professional in the context of accounting?

A)Beverly, a government accountant, prepared two versions of a presentation on governmental financial statements to deliver to two different audiences.
B)Mark, a corporate accountant, resolved an ethical dilemma based on the IMA code of ethics.
C)Both A and B.
D)Neither A nor B.

Question 8

Bumble Beasley remarked: "The only way to be an accounting professional is to earn a CPA license." Which of the following statements is most true?

A)There are many ways to be an accounting professional.
B)All accounting professionals have degrees in accounting.
C)Both A and B.
D)Neither A nor B.

Question 9

According to Bell, accountants should recognize the influence of:

A)The Sarbanes-Oxley Act of 2002.
B)Foreign currency exchange rates.
C)Both A and B.
D)Neither A nor B.

Question 10

As professionals, accountants often use a specialized knowledge base. That specialized knowledge base can come from:

A)FASB pronouncements.
B)Textbooks in accounting and other fields.
C)Both A and B.
D)Neither A nor B.

Question 11

McDonald wrote that professionals utilize a specialized knowledge base. Which of the following is the best example of the specialized knowledge base in accounting?

A)Reconciling a bank statement
B)Writing a check
C)Making adjusting entries
D)Using spreadsheet software

Question 12

Bell's characteristics of a professional include the ability to recognize the influence of:

A)Political and social forces.
B)Economic forces.
C)Legal and regulatory forces.
D)All of the above.

Question 13

Which of the following demonstrates the least professional behavior based on Bell's characteristics?

A)Developing a presentation based on the characteristics of the audience
B)Correctly applying FASB standards for short-term investments
C)Completing continuing professional education courses
D)Ignoring principles from management and finance

Question 14

McDonald wrote that professionals utilize complex skills. Complex skills in accounting include:

A)Totaling the columns in a trial balance.
B)Listing the three sections of a balance sheet.
C)Recommending internal controls for a business process.
D)Filing tax returns electronically.

Question 15

According to Bell, a professional integrates knowledge from many disciplines. Knowledge about ethics requires an accountant to integrate knowledge from:

A)Philosophy.
B)Communication.
C)Science.
D)Psychology.

Question 16

McDonald stated that professionals have autonomy of practice. In the accounting profession, autonomy of practice has been limited by:

A)FASB.
B)COSO.
C)PCAOB.
D)All of the above.

Question 17

One mark of a professional is adherence to a code of ethical behavior. Which of the following statements is most true?

A)As the phrase is used in accounting, "code of ethical behavior" refers to utilitarianism and other schools of ethical thought.
B)As the phrase is used in accounting, " code of ethical behavior" refers to meta-ethics.
C)Both A and B are true.
D)Neither A nor B is true.

Question 18

Which of the following statements best applies a characteristic of a professional in the context of accounting?

A)Raul, a licensed CPA, learned to speak a foreign language in preparation for his firm's expansion into Europe.
B)Paula, a corporate accountant, studied the roles men and women play in business in Egypt.
C)Both A and B.
D)Neither A nor B.

Question 19

Depreciation is the periodic allocation of an asset's cost to the periods which benefit from the asset's use. That statement is an example of:

A)Technical knowledge.
B)A specialized knowledge base.
C)Both A and B.
D)Neither A nor B.

Question 20

Which of the following best pairs a characteristic of a professional with an example of that characteristic?

A)Appropriately uses technical knowledge, closed nominal accounts at the end of the fiscal year
B)Integrates knowledge from many disciplines, closed nominal accounts at the end of the fiscal year
C)Appropriately uses technical knowledge, prepared a schedule of cash receipts and cash payments in Excel
D)Integrates knowledge from many disciplines, prepared a schedule of cash receipts and cash payments in Excel

Question 21

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.The Internet Encyclopedia of Philosophy explained that ethics can be divided into three general subject areas. Which of the following pairs includes two examples of different areas?

A)Jose and Julie
B)Amelia and Lynn
C)Gerhardt and Lynn
D)All of the above

Question 22

Which of the following statements is most reflective of the utilitarian school of ethical thought?

A)Lying is wrong.
B)Lying is OK if it's done to avoid hurting someone's feelings.
C)Both A and B
D)Neither A nor B

Question 23

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.Which of the preceding statements involve ethics, as the term is defined in the text?

A)Jose and Julie only
B)Jose, Lynn and Julie only
C)Jose and Lynn only
D)All of the statements involve ethics as the term is defined in the text.

Question 24

Lee was caught using a work computer for an inappropriate personal purpose. He commented: "I wasn't hurting anyone, since I was on my lunch break." Lee's justification indicates that he is following which school of ethical thought?

A)Rights and duties
B)Utilitarian
C)Virtues
D)Normative

Question 25

Normative ethics can follow which school of ethical thought?

A)Utilitarian or justice
B)Rights and duties
C)Virtues
D)Any of the above

Question 26

Arriving at moral standards that regulate right and wrong conduct is called:

A)Metaethics.
B)Normative ethics.
C)Applied ethics.
D)Obeying the law.

Question 27

Ethics:

A)Is another name for moral philosophy.
B)Involves systematizing, defending and recommending concepts of right and wrong behavior.
C)Both A and B.
D)Neither A nor B.

Question 28

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.Which of the preceding statements involve metaethics, as the term is defined in the text?

A)Jose and Gerhardt only
B)Julie and Gerhardt only
C)Jose and Julie only
D)Jose, Julie and Gerhardt

Question 29

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.The Internet Encyclopedia of Philosophy explained that ethics can be divided into three general subject areas. Which of the following correctly relates one of those subject areas to one of the statements above?

A)Applied ethics, Gerhardt
B)Metaethics, Julie
C)Metaethics, Lynn
D)Normative ethics, Gerhardt

Question 30

Which of the following statements is most reflective of the virtues school of ethical thought?

A)Stealing is wrong.
B)Everyone has the right to steal.
C)Both A and B
D)Neither A nor B

Question 31

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.The Internet Encyclopedia of Philosophy explained that ethics can be divided into three general subject areas. Which of the following correctly relates one of those subject areas to one of the statements above?

A)Normative ethics, Amelia
B)Normative ethics, Lynn
C)Both A and B
D)Neither A nor B

Question 32

Under which school of ethical thought could someone justify stealing inventory from their employer?

A)Utilitarian or justice only
B)Justice or virtues only
C)Utilitarian or virtues only
D)Utilitarian, justice or virtues

Question 33

Consider the following statements as you respond to the next question: • Jose wrote a paper on the origins of codes of ethics in professional accounting organizations.• Amelia participated in a discussion on the ethics of money laundering, a form of fraud.• Gerhardt debated the idea that ethical behavior should and does vary in different countries around the world.• Lynn, the director of training and development at CCT Corporation, suggested rewriting CCT's code of ethics.• Julie prepared a presentation on changes in accounting codes of ethics over the last 50 years.The Internet Encyclopedia of Philosophy explained that ethics can be divided into three general subject areas. Which of the following pairs includes two examples of the same area?

A)Jose and Julie
B)Amelia and Gerhardt
C)Lynn and Gerhardt
D)All of the above

Question 34

Fred embezzled money from his employer. When Susan, his co-worker, confronted him, Fred told her she should mind her own business. Which school of ethical thought best describes Fred's response?

A)Utilitarian
B)Rights and duties
C)Normative
D)Applied

Question 35

Joan asked to be compensated for work she had voluntarily done at home, although she had no written proof of the work. She is most likely following which school of ethical thought with respect to her request for compensation?

A)Justice
B)Virtues
C)Applied
D)Normative

Question 36

Which school of ethical thought follows the belief that everyone should be given what they deserve?

A)Utilitarian
B)Rights and duties
C)Justice
D)Virtues

Question 37

Which of the following tasks involves metaethics?

A)Analyzing historical versions of the AICPA Code of Professional Conduct.
B)Applying the code of ethics of the Institute of Management Accountants.
C)Both A and B.
D)Neither A nor B.

Question 38

Which school of ethical thought follows the belief that the ends justify the means?

A)Utilitarian
B)Rights and duties
C)Justice
D)Virtues

Question 39

Examples of normative ethics include:

A)The AICPA Code of Professional Conduct.
B)The ethics code of the Association of Certified Fraud Examiners.
C)Both A and B.
D)Neither A nor B.

Question 40

Which of the following statements about schools of ethical thought is most true?

A)A specific action, such as stealing, might be considered ethical under one school but unethical under another.
B)A specific action, such as stealing, might be considered ethical under more than one school, but for different reasons.
C)Both A and B are true.
D)Neither A nor B is true.

Question 41

Langender and Rockness proposed an eight-step model for resolving ethical dilemmas; Mintz and Morris proposed a ten-step model. Which of the following statements is most true?

A)The second step in Langenderfer and Rockness is similar to the third step in Mintz and Morris.
B)The second step in Langenderfer and Rockness is similar to the second step in Mintz and Morris.
C)Both A and B are true.
D)Neither A nor B is true.

Question 42

Bell identified seven criteria to be a professional. Which criterion applies to each independent situation below?
1) Albert wrote an e-mail to a prospective new client.2) David used time value of money principles to calculate the price of a bond.3) Hal participated in an online conference about tax law changes.4) Jordan considered the impact of foreign currency exchange rates on an investment.5) Joshua calculated straight-line depreciation.6) Maria used the systems development life cycle to design a new AIS.7) Peggy completed the annual continuing professional education requirements for her Certified Fraud Examiner credential.8) Robert refused to falsify a tax return.9) Ryan prepared a written summary of tax rules for a client.10) Samantha compared the costs and benefits of a set of internal controls.

Question 43

The third step of the Mintz and Morris model for resolving ethical dilemmas could involve:

A)Customers.
B)Employees.
C)Either or both of the above.
D)None of the above.

Question 44

Following the Langenderfer and Rockness model for resolving ethical dilemmas, which of the following steps should happen first?

A)Identify the ethics issues and stakeholders involved.
B)Identify the alternative courses of action.
C)Identify the facts.
D)Define norms related to the situation.

Question 45

Langender and Rockness proposed an eight-step model for resolving ethical dilemmas; Mintz and Morris proposed a ten-step model. Which of the following statements is most true?

A)The ethics codes of professional accounting organizations will be involved in the third step of the Langenderfer and Rockness model.
B)The ethics codes of professional accounting organizations will be involved in the fourth step of the Mintz and Morris model.
C)Both A and B are true.
D)Neither A nor B is true.

Question 46

Joey is the vice president of corporate ethics at NCD Corporation. In a recent case of fraud discovered at NCD, Joey considered whether he should fire the employee who committed the fraud, require repayment of the funds stolen or both. Following the Langenderfer and Rockness model, Joey's next action should be:

A)To determine which school of ethical thought he follows.
B)To complete a cost / benefit analysis of each action.
C)To decide what he should do.
D)To determine which school of ethical thought the employee follows.

Question 47

A department manager might be involved in which steps of the Langenderfer and Rockness model for resolving ethical dilemmas?

A)Step two only
B)Step seven only
C)Either Step two or step seven
D)Neither step two nor step seven

Question 48

Following the Mintz and Morris model for resolving ethical dilemmas, which of the following steps should occur last?

A)Frame the ethical issue.
B)Identify the stakeholders and obligations.
C)Identify the operational issues.
D)Reflect on your decision.

Question 49

Taylor became aware of a serious ethical breach in her company related to a small group of managers recording sales revenue inappropriately. She called a meeting of all the managers in the company and told them to "confess or else." The managers, particularly those who had not committed any ethical breach, became very angry and the meeting ended in chaos.Analyze Taylor's actions. Suggest a better approach for dealing with the ethics issue in her company; ensure that your suggestions are clearly applied to Taylor's situation.

Question 50

Joey is the vice president of corporate ethics at NCD Corporation. Through an anonymous hotline, he received a tip that Tom, also an NCD employee, had unfairly terminated an employee in his department. Based on the Mintz and Morris model for resolving ethical dilemmas, what should Joey do first?

A)Determine whether the termination is an ethics issue.
B)Determine whether the allegation is true.
C)Confront Tom.
D)Interview the terminated employee.

Question 51

McDonald suggested four characteristics necessary to be considered a professional. Revise each statement below to more appropriately reflect one of those characteristics; indicate the relevant characteristic in the space provided.

Question 52

List the four characteristics suggested by McDonald to be considered a professional.

Question 53

Langenderfer and Rockness suggested an eight-step model for resolving ethical dilemmas. Consider each of the independent statements that follow; indicate what would happen immediately after the action listed based on the Langenderfer and Rockness model.1) Arnold, having arrived at a decision about what to do, discussed his proposed action with a trusted co-worker.2) Beverly determined that a case she was investigating dealt with embezzling cash, which would impact the company's employees and other groups.3) Lenise laid out three potential responses for a violation of her company's ethics code.4) Linda consulted the AICPA Code of Professional Conduct for an ethics issue raised by a co-worker.5) Maria considered what would happen to various stakeholders for each of three alternatives she had identified.

Question 54

In your own words, define the following terms: ethics, metaethics, normative ethics, applied ethics. Give an example with each definition.

Question 55

Supply the missing words / phrases below based on the definition of ethics in the text.The field of ethics, also called
(a) involves systematizing, defending, and recommending concepts of right and wrong behavior.
(b) investigates where our ethical principles come from, and what they mean.
(c) takes on a more practical task, which is to arrive at moral standards that regulate right and wrong conduct. Finally,
(d) involves examining specific controversial issues.
a. moral philosophyb. metaethicsc. normative ethicsd. applied ethics

Question 56

Taylor became aware of a serious ethical breach in her company related to a small group of managers recording sales revenue inappropriately. In interviewing those managers about the issue, Taylor asked each one why they had committed the ethical breach.Use two of the four schools of ethical thought discussed in the text to create brief responses the managers would have given Taylor. For each response, indicate the relevant school of ethical thought.

Question 57

Langender and Rockness proposed an eight-step model for resolving ethical dilemmas; Mintz and Morris proposed a ten-step model. Which of the following statements is most true?

A)The Mintz and Morris model specifically discourages thoughtful consideration of a choice after an ethical dilemma is resolved.
B)The Mintz and Morris model is focused more specifically on accounting ethics than the Langenderfer and Rockness model.
C)Both A and B are true.
D)Neither A nor B is true.

Question 58

Langender and Rockness proposed an eight-step model for resolving ethical dilemmas; Mintz and Morris proposed a ten-step model. Which of the following statements is most true?

A)The Mintz and Morris model is better because it involves more steps.
B)The Langenderfer and Rockness model is better because it involves fewer steps.
C)The two models will always result in the same decision.
D)None of the above statements is true.