Deck 3: Professionalisam and Ethics

Question 1

The idea that all people should be given what they deserve is central in the ___ school of ethics.

A) Justice.
B) Rights and duties.
C) Utilitarianism.
D) Virtues.

Answer 1

A

Question 2

McDonald's characteristics of a professional include:

A) Generalized knowledge base.
B) Simple skills.
C) Autonomy of practice.
D) Adherence to the "justice" school of ethics.

Answer 2

C

Question 3

Houle's model of becoming a professional has three components: conceptual, performance and:

A) Collective identity.
B) Ethical collaboration.
C) Complex decision making.
D) Rules and regulations.

Answer 3

A

Question 4

According to Bell, a professional should think: (i) rationally, (ii) effectively, (iii) coherently.

A) i and ii only.
B) ii and iii only.
C) i and iii only.
D) i, ii and iii.

Question 5

In the Langenderfer and Rockness model, which of the following steps comes first?

A) Evaluate the consequences of possible courses of action.
B) Reach a decision.
C) Identify stakeholders involved.
D) Consult the company's code of ethics.

Question 6

Which of the following is not a characteristic of a professional defined by Bell?

A) Appropriately uses philosophical knowledge.
B) Communicates effectively.
C) Actively seeks additional knowledge.
D) Integrates knowledge from many disciplines.

Question 7

Step Two in the Langenderfer and Rockness model requires the decision maker to identify: (i) an ethical model, (ii) ethics issues, (iii) stakeholders.

A) i and ii only.
B) ii and iii only.
C) i and iii only.
D) i, ii and iii.

Question 8

In the Langenderfer and Rockness model, discussing alternatives with a trusted person a. immediately follows:

A) Identifying the facts.
B) Identifying the issues.
C) Evaluate consequences of each possible course of action.
D) Reach a decision.

Question 9

The ACFE Code of Ethics differs from the IMA and AICPA codes in that the ACFE Code:

A) Contains more elements than either IMA or AICPa.
B) Contains more elements than AICPA, but fewer than IMa.
C) Contains more elements than IMA, but fewer than AICPa.
D) Contains fewer elements than either IMA or AICPa.

Question 10

Bell believes a professional should recognize the influence of all the following forces except:

A) Political.
B) Economic.
C) Legal.
D) Spiritual.

Question 11

A corporate controller hires an unqualified family member for a high-paying position. The controller's action violates which element of the IMA Code of Ethics?

A) Competence.
B) Confidentiality.
C) Integrity.
D) None.

Question 12

According to the ACFE Code of Ethics, a certified fraud examiner cannot:

A) Accuse a fraud suspect.
B) State that a suspect is innocent of fraud in court.
C) Use information technology in a fraud examination.
D) Reveal confidential information under any circumstances.

Question 13

Which of the following is not a model of ethics discussed in the text?

A) Meta-ethics.
B) Justice.
C) Rights and duties.
D) Virtues.

Question 14

Identifying the facts is step ___ in the Langenderfer and Rockness model.

A) One.
B) Two.
C) Three.
D) Identifying the facts is not a step in the model.

Question 15

Certified Fraud Examiners must complete professional development activities (continuing education) annually. That requirement is most closely associated with which element of the ACFE Code of Ethics?

A) Increasing competence and effectiveness.
B) Expressing an opinion as to a suspect's guilt.
C) Revealing confidential information.
D) Avoiding most conflicts of interest.

Question 16

"The end justifies the means" most clearly describes which school of ethical thought?

A) Justice.
B) Rights and duties.
C) Utilitarianism.
D) Virtues.

Question 17

The Langenderfer and Rockness model assumes the decision maker subscribes to which theory of ethics?

A) Justice.
B) Applied ethics.
C) Virtues.
D) Cannot be determined from the information given.

Question 18

Which of the following best explains the "confidentiality" section of the IMA Code of Ethics?

A) Accountants cannot testify against their clients in court.
B) Supervisors must check employees' work to ensure that they uphold confidentiality appropriately.
C) Corporate controllers cannot assist external auditors.
D) Confidentiality is not part of the IMA Code of Ethics.

Question 19

Which school of ethical thought advocates an "every person for him/herself" philosophy?

A) Justice.
B) Rights and duties.
C) Utilitarianism.
D) Virtues.

Question 20

People who subscribe to the ___ school of ethics do what is right and moral.

A) Justice.
B) Rights and duties.
C) Utilitarianism.
D) Virtues.

Question 21

Explaining how auditors contribute to the decision making process is an example of which element of Houle's ideas on professionalism?

A) Conceptual.
B) Collective identity.
C) Complex skills.
D) Autonomy of practice.

Question 22

Which of the following is not part of the definition of ethics presented in the text?

A) Organizing.
B) Defending.
C) Proposing.
D) Reciting.

Question 23

"People shouldn't cheat" is an example of:

A) Meta-ethics.
B) Normative ethics.
C) Applied ethics.
D) Situational ethics.

Question 24

Understanding the rules of debit and credit is an example of which element of Houle's ideas on professionalism?

A) Conceptual.
B) Collective identity.
C) Communication.
D) Autonomy of practice.

Question 25

As part of his commitment to professionalism, John used the Langenderfer and Rockness model to resolve an ethical dilemma. His action is an example of:

A) Thinking rationally, logically and coherently.
B) Recognizing the influence of legal forces.
C) Recognizing the influence of social forces.
D) Recognizing the influence of economic forces.

Question 26

An accountant should remain as objective as possible in any professional responsibility, reflecting which of McDonald's characteristics?

A) Specialized knowledge base.
B) Complex skills.
C) Autonomy of practice.
D) Communicating effectively.

Question 27

In connection with the Enron bankruptcy, Skilling was most likely following which school of ethical thought?

A) Virtues.
B) Utilitarianism.
C) Normative ethics.
D) Justice.

Question 28

Enron's failure to disclose key facts in its financial statements most clearly violated which standard of the IMA Code of Ethics?

A) Honesty.
B) Fairness.
C) Competence.
D) Responsibility to clients.

Question 29

Explaining a person's ethics by analyzing the ethics of his ancestors is an example of:

A) Meta-ethics.
B) Normative ethics.
C) Applied ethics.
D) Situational ethics.

Question 30

McDonald identified four criteria for becoming a professional. Which criterion is most directly related to learning new accounting software?

A) Adherence to a code of ethical behavior.
B) Autonomy of practice.
C) Collective identity.
D) Specialized knowledge base.

Question 31

The following information applies to Questions 36 through 38:
Mike is a freshman considering a major in accounting. His uncle is an accountant, and Mike was drawn to the field because he has an aptitude for numbers. However, when he met with his accounting advisor, Mike was surprised to learn that getting an accounting degree meant taking a lot of seemingly unrelated courses; in fact, only about 25% of his coursework would be in the Accounting Department. Mike's advisor explained that the process of becoming a professional accountant involves many skills other than technical and quantitative; she also talked with Mike about Bell, Houle and McDonald's ideas.
Mike's accounting courses will uniquely prepare him to:

A) Communicate effectively.
B) Appropriately use technical knowledge.
C) Integrate knowledge from many disciplines.
D) Practice autonomy.

Question 32

The four schools of ethical thought discussed in the chapter (justice, virtues, rights and duties, utilitarianism) are examples of:

A) Meta-ethics.
B) Normative ethics.
C) Applied ethics.
D) Situational ethics.

Question 33

The following information applies to Questions 36 through 38:
Mike is a freshman considering a major in accounting. His uncle is an accountant, and Mike was drawn to the field because he has an aptitude for numbers. However, when he met with his accounting advisor, Mike was surprised to learn that getting an accounting degree meant taking a lot of seemingly unrelated courses; in fact, only about 25% of his coursework would be in the Accounting Department. Mike's advisor explained that the process of becoming a professional accountant involves many skills other than technical and quantitative; she also talked with Mike about Bell, Houle and McDonald's ideas.
In one of his early accounting courses, Mike learned that professional accountants have to keep their knowledge updated via study even after they've been in practice for several years. That updating will help Mike:

A) Master the basics of accounting.
B) Improve his performance as an accountant.
C) Define his role in society.
D) Establish a collective identity.

Question 34

The following information applies to Questions 36 through 38:
Mike is a freshman considering a major in accounting. His uncle is an accountant, and Mike was drawn to the field because he has an aptitude for numbers. However, when he met with his accounting advisor, Mike was surprised to learn that getting an accounting degree meant taking a lot of seemingly unrelated courses; in fact, only about 25% of his coursework would be in the Accounting Department. Mike's advisor explained that the process of becoming a professional accountant involves many skills other than technical and quantitative; she also talked with Mike about Bell, Houle and McDonald's ideas.
Mike must also take courses in management, finance and information systems. Houle included that concept in which part of his process of becoming a professional?

A) Conceptual.
B) Performance.
C) Collective identity.
D) Ethics.

Question 35

The American Institute of CPAs developed a seven-part system of professional conduct. The code is principally related to which of McDonald's four criteria?

A) Specialized knowledge base.
B) Complex skills.
C) Autonomy of practice.
D) Adherence to a code of ethical behavior.

Question 36

Preparing financial statement footnotes that are clear and understandable is an example of:

A) Communicating effectively.
B) Actively seeking additional knowledge.
C) Exhibiting ethical professional behavior.
D) Using information technology effectively.

Question 37

John Rigas' philanthropic actions:

A) Justified his illegal actions.
B) Were motivated by adherence to the AICPA Code of Ethics.
C) Appeared to follow the virtues model of ethical behavior.
D) Were similar to those of Charles Ponzi.

Question 38

Which of the following firms was mostly closely related to the Enron bankruptcy?

A) Adelphia Cable.
B) American Institute of CPAs.
C) Arthur Andersen.
D) Massachusetts Board of Prisons.

Question 39

Ponzi's actions most directly violate which element of the IMA Code of Ethics?

A) Credibility.
B) Confidentiality.
C) Collective identity.
D) Responsibilities to clients.

Question 40

Debating the ethics of insider trading best describes:

A) Meta-ethics.
B) Normative ethics.
C) Applied ethics.
D) Situational ethics.

Question 41

Conflicts of interest are mentioned specifically in (i) the IMA Code of Ethics, (ii) the ACFE Code of Ethics.

A) i only.
B) ii only.
C) Both i and ii.
D) Neither i nor ii.

Question 42

Which school of ethical thought is Viola apparently using? Defend her actions using that school of thought.

Question 43

The following situation applies to Questions 41 through 45:
Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
Chris believed that his employees would work harder if goals were more achievable, thus demonstrating the ___ model of ethics.

A) Justice.
B) Rights and duties.
C) Utilitarianism.
D) Virtues.

Question 44

Assume the role of Viola's supervisor. Using the characteristics of a professional discussed in the text, compose an e-mail that explains to Viola why her actions are unprofessional.

Question 45

Which of the following statements is most true when comparing the IMA Code of Ethics with the AICPA Code of Professional Conduct?

A) All accountants must adhere to one or the other.
B) Both dictate specific decisions for specific ethics cases.
C) Neither explains a specific process for resolving ethical dilemmas.
D) Both codes contain seven parts.

Question 46

Which code of ethics contains the most specific guidelines for behavior?

A) Justice code.
B) Normative ethics code.
C) ACFE code.
D) Behavioral code.

Question 47

Professional characteristics and accounting
In the space provided, indicate whether each phrase most clearly exemplifies: (a) specialized knowledge base, (b) complex skills, (c) autonomy of practice or (d) adherence to a code of ethical behavior.
_____ 1. Advising others about conflicts of interest.
_____ 2. Behaving with integrity.
_____ 3. Calculating the balance in a bank account.
_____ 4. Developing confidence in your own opinion.
_____ 5. Keeping information confidential when required.
_____ 6. Learning advanced spreadsheet techniques.
_____ 7. Memorizing the accounting definition of depreciation.
_____ 8. Reciting the rules of debit and credit.
_____ 9. Thinking independently.
_____ 10. Upholding responsibilities to clients and colleagues.

Question 48

Ethics models
In the space provided, indicate whether each of the following statements best exemplifies: (a) utilitarianism model of ethics, (b) justice model of ethics, (c) rights and duties model of ethics, (d) virtues model of ethics.
_____ 1. All's well that ends well.
_____ 2. He'll get what's coming to him.
_____ 3. His actions are immoral; there's no other way to look at it.
_____ 4. In the long run, she'll pay for her wrongdoing.
_____ 5. Nothing matters as much as our after-tax profit.
_____ 6. So long as the company has enough cash on hand at the end of the year, anything we
do is OK.
_____ 7. The only important thing in this situation is for everyone to be allowed to do what
seems right to them.
_____ 8. This decision doesn't affect you, so don't bother me about it.
_____ 9. What you're doing just isn't right.
_____ 10. You follow your code of ethics; I'll follow mine.

Question 49

Viola's actions raise an ethics issue for both herself and the corporation. Define each of the following: ethics, meta-ethics, normative ethics, applied ethics.

Question 50

Which of the following is discussed in both the IMA Code of Ethics and the AICPA Code of Professional Conduct?

A) Truth.
B) Integrity.
C) Fraud examination.
D) Eight-step model.

Question 51

The following situation applies to Questions 41 through 45:
Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
One of Chris' co-workers discovered his budget padding. The co-worker, however, did not report the action to their supervisor because of her adherence to the ___ model of ethics.

A) Virtues.
B) Utilitarianism.
C) Rights and duties.
D) Justice.

Question 52

Use the ethical code of the Institute of Management Accountants to determine if Viola's actions are ethical.

Question 53

The following situation applies to Questions 41 through 45:
Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
Chris' supervisor suspected Chris was padding the budget and told a friend: "That's just not right." Based on that comment alone, Chris' supervisor likely follows the ___ model of ethics.

A) Utilitarianism.
B) Rights and duties.
C) Virtues.
D) Justice.

Question 54

Which code of ethics explicitly prohibits expressing an opinion regarding guilt or innocence?
a. IMa.
b. AICPa.
C. ACFE.
d. AIS.

Question 55

The following situation applies to Questions 41 through 45:
Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
Which model of ethical decision-making will lead Chris to the best decision regarding the budget?

A) Utilitarianism.
B) Rights and duties.
C) Justice.
D) Cannot be determined from the information given.

Question 56

IMA Code of Ethics
Several statements from the IMA Code of Ethics appear below. Fill in the blanks on the left to complete each statement, then indicate the code section it comes from in the right-hand column.

Question 57

The following situation applies to Questions 41 through 45:
Chris was developing his divisional budget for the upcoming fiscal year. He was fairly confident his total expenses would be $40,000 and his total revenue $60,000; but, in the budget, he understated his revenue and overstated his expenses to make it easier to achieve his goals.
Chris felt his base pay was too low. By manipulating his budget as he did, his year-end bonus would be higher. Chris was following the ___ model of ethics.

A) Virtues.
B) Utilitarianism.
C) Rights and duties.
D) Justice.