Deck 16: Duties in the Accounting Workplace Online Only

Question 1

Prior to hiring a new professional staff member, an auditing firm checks public records to see if a prospective employee has ever been arrested for insider trading or other forms of securities fraud? Is this ethical?

Answer 1

not answered

Question 2

"Employment at will" means that:

A) An audit client may terminate its auditor without giving the auditor advance notice
B) A tax return preparation service may terminate an employee only for engaging in willful misconduct
C) A corporation may terminate a member of its accounting staff without giving the staff member advance notice
D) An employer only may terminate an employee if the employee will receive adequate severance pay or unemployment compensation

Answer 2

C

Question 3

"Eating hours":

A) Means that an employee has exaggerated the number of hours worked in order to earn overtime pay
B) Is unethical, to a deontologist, because it involves an untruthful act
C) Is ethical, to a deontologist, because it preserves, and indeed enhances, property rights
D) Is illegal as well as unethical

Answer 3

B

Question 4

"Wrongful termination against public policy" is:

A) An ethical concept, but not a legal concept
B) An ethical concept that some commentators believe should legally be enforceable
C) An ethical concept and a legal concept that currently is in effect
D) A legal concept that was replaced with the "employment at will" doctrine

Question 5

An employee who is involved in preparing her employer's SEC filings informed the SEC that a footnote disclosure in the company's filings was misleading and untruthful. The company's employment manual clearly states that "communications with federal or state law enforcement authorities is strictly forbidden without first obtaining the written consent of the company's General Counsel Office." This employee never did so. The employer:

A) Has the right to terminate the employee under the "employment at will" doctrine, assuming that the employee did not have a binding contract for a fixed duration
B) Has the right to terminate the employee under the "employment at will" doctrine" under all circumstances
C) Has the right to terminate the employee due to the employee's breach of contract
D) Wrongfully terminated the employee

Question 6

In most states, a covenant not to compete that has been agreed to by an employer and an employee is:

A) Illegal, but the overall employment contract in which it appears remains enforceable as if the contract did not contain the covenant not to compete
B) Illegal, and it invalidates the entire employment contract in which it appears
C) Legally enforceable, if it does not unduly prevent the employee from obtaining similar employment in the employee's chosen trade or occupation
D) Legally enforceable under all circumstances

Question 7

What is the "employment at will" doctrine? Do you believe that it poses ethical dilemmas for employers? How? Do you believe that it poses ethical dilemmas for employees? How?

Question 8

For an item to be considered a "trade secret," which of the following characteristics must be present?

A) The employer may only have disclosed this item to company directors and officers
B) This item generally is known to, or knowable by, the general public
C) It has been reduced to written form and is accorded physical protection, such as through the use of encryption or a locked safe
D) It must give a company significant revenue-generating superiority over competitors

Question 9

Prior to hiring a new professional staff member, an auditing firm checks public records to see if a prospective employee has ever been convicted of petty theft? Is this ethical?

Question 10

Under most circumstances, giving advance notice to an employer prior to quitting a job is:

A) An ethical requirement, but not a legal requirement
B) A legal requirement, but not an ethical requirement
C) Both an ethical and a legal requirement
D) Not an ethical or legal requirement

Question 11

In accordance with the IFAC Code of Conduct, if an accountant working as an industry accountant wishes to change jobs by joining a direct competitor to her current employer, she:

A) May do so, but is discouraged from doing so
B) May do so, and is neither encouraged nor discouraged from doing so
C) Is expressly prohibited from doing so because the experiences gained at her prior employer will invariably be utilized on the new job to the harm of the prior employer
D) May do so after a one-year waiting period that commences on the day that she ceases work for the former employer

Question 12

An employer recently terminated an employee from her job as a company tax accountant. Which of the following likely would be be classified as a "wrongful termination against public policy"?

A) The employee was fired without cause or justification
B) The employee truthfully responded to a question posed by an IRS investigator, which resulted in the employer incurring substantial penalties
C) The employee carelessly overstated the employer's gross income on its tax return, which resulted in the employer making substantial additional, and unnecessary, tax payments
D) The employer fired the employee for being late to work two times in one month, even though several other employees in the same department were late to work three times and were not terminated

Question 13

Prior to hiring a new professional staff member, an auditing firm checks public records to see if a prospective employee has ever been convicted of a felony involving illegal drug use? Is this ethical?

Question 14

An employee is about to change jobs. Before leaving her current job, she solicited clients to shift their business to her upcoming employer. She:

A) Is protected legally by rules set forth by the Equal Employment Opportunity Commission
B) Is protected legally by rules that foster free competition
C) Has acted acceptably, as long as she never agreed to a covenant not to compete with her soon-to-be former employer
D) May be held liable for interference with prospective economic advantage

Question 15

What are the core traits that an employer usually may not inquire about prior to hiring an employee?

Question 16

Prior to hiring a new professional staff member, an auditing firm checks public records to see if a prospective employee has ever been convicted of insider trading? Is this ethical?

Question 17

An employer spends substantial sums training its employees. This employer has determined that it is not economical to make these training expenditures if a new employee is likely to quit within the first three years of employment. Is it ethical for an employer, prior to hiring a new employee, to inquire of prospective female employees if they plan to give birth to a child during the upcoming three years? (Do not discuss the law.)

Question 18

The Worker Retraining and Notification Act:

A) Makes it more difficult for employers to layoff workers in certain circumstances
B) Requires employers to give all professional and managerial employees 30 days' notice before their employment positions terminate
C) Requires employers to give all employees, other than professional and managerial employees, 30 days' notice before their employment positions terminate
D) Eliminates the employment at will concept in states that have adopted this law

Question 19

An accounting firm insists that all of its professional staff members and partners provide copies of their most recent federal and state income tax returns to the partner in charge of regulatory compliance. These submissions must occur no later than the April 15 due date for filing these tax returns. This policy:

A) Is mandated by the AICPA's Code of Professional Conduct
B) Is reasonable to ensure compliance with professional standards, but is not required
C) Is a discreditable act by the accounting firm
D) Is an illegal violation of employee privacy under the federal tax law

Question 20

Do you consider a large differential in pay between executives and lower-paid personnel to be an ethical issue? If so, what do you believe should be done to moderate this differential?

Question 21

An employer is not allowed, by federal law, to inquire about a prospective employee's genetic makeup. Who would an employer potentially want to make such an inquiry?

Question 22

An employer spends substantial sums training its employees. This employer has determined that it is not economical to make these training expenditures if a new employee is likely to quit within the first three years of employment. Is it ethical for this employer, prior to hiring a new employee, to insist that a prospective employee agree in an employment contract to reimburse the firm for its out-of-pocket costs if the employee fails to remain with the firm for at least three years?