Question 1

Explain how virtue interacts with moral development in Thorne's Integrated Model of Ethical Decision-making.

Accepted Answer

The answer of Explain how virtue interacts with moral development...

Question 2

Which of the following was not one of the recommendations that Uber implemented after charges of sexual harassment were made:
A) Training key personnel.
B) Providing an effective complaint process.
C) Encouraging quid pro quo.
D) Creating a board oversight committee.

Accepted Answer

Encouraging quid pro quo, or the exchange of sexual favors for job benefits, would be inappropriate and would not be a recommendation made by Uber or any responsible company in response to charges of sexual harassment. The other options - training key personnel, providing an effective complaint process, and creating a board oversight committee - are all measures that Uber did implement in response to these charges.

Question 3

The ethical conflict in A Team Player can be described as:
A) There is no conflict; Barbara and Diane both identify the deficiency.
B) The conflict is between Diane and the rest of the audit team on whether there is a deficiency.
C) The conflict is between Barbara and Haley, and the rest of the team as to whether or not to take the deficiency to Jessica, the audit senior.
D) The conflict is between Barbara and the rest of the team as to whether or not to take the deficiency to Jessica, the audit senior.

Accepted Answer

The ethical conflict involves Barbara and Haley debating with the rest of the team about whether to report the deficiency to Jessica, the audit senior.

Question 4

Assume your values conflict with what you are being asked to do. Under the Giving Voice to Values methodology which of the following statements reflects the thought process you might have in developing a game plan to voice your values?
A) Use philosophical ethical theories to reason through alternative courses of action
B) Use the ethical decision making model to evaluate the ethics of the situation
C) Reflect on the objections that might be raised to your intended expressed views
D) Use Systems 2 thinking to decide on a course of action

Accepted Answer

The Giving Voice to Values methodology emphasizes preparing for the objections and counterarguments that one might face when voicing their values. Reflecting on potential objections helps in developing a more robust and persuasive argument for one's values.

Question 5

How does Kidder's structure for decision-making relate to the Integrated Model presented in the chapter?

Accepted Answer

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Question 6

In using the GVV framework, questions to pose for dealing with the opposing points of view include all of the following except:
A) What is the way to appeal all parties?
B) What is at stake for the key parties?
C) What is your most powerful and persuasive response you need to address?
D) What levers can you to influence others?

Accepted Answer

The other three options (B, C, D) are all valid questions to consider when dealing with opposing points of view using the GVV framework. However, A is not as relevant since the goal is not necessarily to appeal to all parties, but rather to understand and address their key concerns and perspectives.

Question 7

Gabby has just left a meeting with the partner in charge of an audit engagement and was told to ignore the typical year-end accrual entries because earnings are below financial analysts' earnings expectations. Gabby knows this is wrong and wants to act on her values but she does not want to lose her job. What is the best thing for Gabby to do in this situation if she chooses to voice her values?
A) Quit the firm
B) Speak with the managing partner of the firm
C) Inform the SEC of the difference
D) All of the above

Accepted Answer

Speaking with the managing partner of the firm is the best course of action in this situation. It allows Gabby to voice her concerns and potentially rectify the situation within the company. Quitting the firm or informing the SEC may be extreme measures and should be considered only as a last resort.

Question 8

The ethical conflict Alex is facing in the FDA Liability Concerns can be best characterized as:
A) Alex and Michael can't convince Gregory of the extent of the problem caused by the listeria identified by the FDA.
B) Alex wants to do the right thing by consumers of his salad oil products but Michael objects based on his cost benefit analysis.
C) Alex and Michael want to make the plant seem as profitable as possible so the firm can do an IPO and cash out their shares but Gregory wants to inform the FDA of the extent of the listeria problem.
D) Gregory and Michael are using cost-benefit analysis to pay fines and do the minimum for the FDA while Alex wants to comply fully.

Accepted Answer

Alex is facing an ethical conflict where he wants to prioritize consumer safety, but Michael is focused on minimizing costs, creating a tension between ethical responsibility and financial considerations.

Question 9

Assume your supervisor has reduced the number of hours you charged to the client because it was over budget. You will not be paid for those hours. What would you do and why? Use ethical reasoning.

Accepted Answer

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Question 10

Which of the following is NOT one of the levers Larry Davis might use to convince Paul Jones about the rightness of his point of view in the Ace Manufacturing case discussed in the chapter?
A) Davis can ask Paul Jones for supporting documentation to back up the coding of expenses to different accounts
B) Davis can try to convince Paul that his actions are harmful to the company and potentially very embarrassing for his dad
C) Davis can threaten to go to all the owners if Paul doesn't admit the mistake and take corrective action
D) Davis can threaten to go to the SEC to protect shareholder interests if Paul agrees to pay back the amounts taken out of the company and correct the accounting

Accepted Answer

Option D is incorrect because going to the SEC (Securities and Exchange Commission) would be an extreme measure not typically involved in internal company disputes like the one described in the Ace Manufacturing case. The SEC deals with securities law violations, which may not be directly relevant to the internal accounting issues described.

Question 11

In the Gateway Hospital case, Kristen's best argument to counter the reasons and rationalizations Troy might give for requesting an extra days' reimbursement is?
A) Her loyalty is to the hospital and not Troy.
B) Her ethical obligation is ensuring that employees do not get reimbursed for unsubstantiated expenditures.
C) Troy did not stay the extra day for which he is requesting reimbursement.
D) All of the above.

Accepted Answer

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Question 12

The ethical dilemma for Ricardo in the Juggyfroot case can best be described as:
A) Whether to go along with Fred and Ethel's accounting for the loss in value on marketable securities.
B) Whether to let his failure to object to inappropriate accounting in the prior year influence whether he goes along with inappropriate accounting in the current year.
C) Whether to quit the firm because of the pressure placed on him by his boss to go along with inappropriate accounting.
D) Whether to blow the whistle on the inappropriate accounting sanctioned by the firm.

Accepted Answer

Ricardo's ethical dilemma involves deciding whether to continue allowing inappropriate accounting practices, as he did in the previous year, or to take a stand against them now.

Question 13

The "Milton Manufacturing" case illustrates:
A) What can go wrong when a company sets a policy that potentially harms one area of its operations.
B) How the failure to exercise professional skepticism can cloud objective judgment.
C) The pressure that can be placed on accountants by top management.
D) What can go wrong when fraudulent accounting is dictated by top management.

Accepted Answer

The case study highlights the negative impact of a policy that prioritizes reducing costs over maintaining quality, which ultimately harms the company's overall operations.

Question 14

At which stage of moral development are most accountants and auditors with respect to their decision making? What factors are responsible for their being at that stage? Given the stage of moral development you think you are at, how does this relate to the stage of moral reasoning of most accountants and auditors? What conflicts might exist for you in the workplace?

Accepted Answer

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Question 15

The ethical dilemma for Hailey in "Taxes and the Cannabis Business" case can best be described as a:
A) Conflict between reporting cash sales and ignoring them
B) Conflict between reporting expenses and ignoring it
C) Lack of independence due to ties to the client entity
D) Lack of due care in not spotting improper tax accounting

Accepted Answer

The ethical dilemma in this case is that Hailey is unsure whether to report the cash sales made by the cannabis business or ignore them and only report the credit card sales. Reporting only credit card sales would be legally compliant but ethically questionable as it would mean avoiding paying taxes on the cash sales. On the other hand, reporting cash sales could be legally risky due to the nature of the cannabis business and its federal illegality. Overall, the conflict between reporting cash sales and ignoring them is the central ethical dilemma in this case.

Question 16

In the A Team Player case discussed in the chapter, which is the primary reason and rationalization that Barbara may need to counter for not informing Jessica of the inventory deficiency?
A) The inventory deficiency is immaterial.
B) Not accounting for the inventory deficiency is standard practice.
C) The inventory deficiency is not the team's responsibility.
D) The inventory deficiency is a one-time occurrence and will not happen again.

Accepted Answer

The primary reason Barbara may need to counter is the belief that the inventory deficiency is immaterial, suggesting that because the deficiency might not significantly impact financial statements, it could be rationalized as not necessary to report. This perspective overlooks the importance of accuracy and transparency in financial reporting, regardless of the perceived materiality.

Question 17

Describe the Giving Voice to Values framework. What are the reasons and rationalizations frequently given in financial statement fraud situations?

Accepted Answer

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Question 18

In the Racially Charged Language case, which of the following is not one of the EDI initiatives discussed in the case:
A) Create an inclusive community where all students thrive
B) Establish goals to retain underrepresented groups
C) Allow flyers using racial slurs
D) Implement a 12-week training program

Accepted Answer

The case does not discuss allowing flyers using racial slurs as an EDI initiative, rather it addresses the negative impact of such language on campus climate and community. The rest of the answer options are initiatives discussed in the case.

Question 19

What ethical action should Daniel take in A Faulty Budget?
A) Work with Pete to correct the budget so JB, Pete's boss, does not find out.
B) Work with Pete to keep quiet about the mistake in the budget so the new hires will not be laid off.
C) Tell JB about the mistake in the budget but only half of the actual mistake so that employees will not be laid off.
D) Tell JB about the mistake in the budget so the company can make corrections as soon as possible.

Accepted Answer

The best ethical action for Daniel in this situation is to inform JB about the mistake in the budget, so the company can make corrections as soon as possible. This will help the company avoid any potential financial losses or lawsuits that could arise from incorrect reporting. While it may lead to layoffs in the short term, ultimately disclosing the mistake will lead to better decision-making and may allow for alternative solutions to prevent layoffs. It is not ethical to work with Pete to cover up the mistake or withhold information from JB.

Question 20

Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating:
A) Courage and expediency
B) Persistence and courage
C) Courage and loyalty
D) Persistence and loyalty

Accepted Answer

Cynthia Cooper demonstrated persistence in her investigation of suspicious accounting practices at WorldCom, as she continued to pursue evidence even when faced with resistance and obstacles. She also demonstrated courage in bringing the issue to the attention of top management and ultimately to the public, despite potential backlash and the risk of losing her job. Loyalty was not a significant factor in her actions, as her focus was on protecting the interests of stakeholders and ensuring ethical behavior within the company.

Quiz 2: Cognitive Processes and Ethical Decision Making in Accounting

Explain how virtue interacts with moral development in Thorne's Integrated Model of Ethical Decision-making.

Which of the following was not one of the recommendations that Uber implemented after charges of sexual harassment were made:

The ethical conflict in A Team Player can be described as:

Assume your values conflict with what you are being asked to do. Under the Giving Voice to Values methodology which of the following statements reflects the thought process you might have in developing a game plan to voice your values?

How does Kidder's structure for decision-making relate to the Integrated Model presented in the chapter?

In using the GVV framework, questions to pose for dealing with the opposing points of view include all of the following except:

The ethical conflict Alex is facing in the FDA Liability Concerns can be best characterized as:

Assume your supervisor has reduced the number of hours you charged to the client because it was over budget. You will not be paid for those hours. What would you do and why? Use ethical reasoning.

Which of the following is NOT one of the levers Larry Davis might use to convince Paul Jones about the rightness of his point of view in the Ace Manufacturing case discussed in the chapter?

In the Gateway Hospital case, Kristen's best argument to counter the reasons and rationalizations Troy might give for requesting an extra days' reimbursement is?

The ethical dilemma for Ricardo in the Juggyfroot case can best be described as:

The "Milton Manufacturing" case illustrates:

The ethical dilemma for Hailey in "Taxes and the Cannabis Business" case can best be described as a:

In the A Team Player case discussed in the chapter, which is the primary reason and rationalization that Barbara may need to counter for not informing Jessica of the inventory deficiency?

Describe the Giving Voice to Values framework. What are the reasons and rationalizations frequently given in financial statement fraud situations?

In the Racially Charged Language case, which of the following is not one of the EDI initiatives discussed in the case:

What ethical action should Daniel take in A Faulty Budget?

Cynthia Cooper's actions in the WorldCom case can be best characterized as demonstrating: