With respect to ethics, the utilitarian theory:
A)suggests that auditors should always verify ownership of a client's material tangible assets.
B)is primarily concerned with equity and impartiality.
C)suggests that an individual's actions should not violate the rights of any individual.
D)recognizes that decisions involve trade-offs between costs and benefits.

Question

Quizplus · Accepted Answer

The utilitarian theory states that decisions should be made by considering the costs and benefits involved. This implies that ethical decision-making requires weighing the consequences of various alternatives in terms of their effects on different parties. Therefore, it recognizes that decisions require trade-offs between costs and benefits. Option A is incorrect because it only pertains to auditing procedures and does not relate to ethics in general. Option B is incorrect because equity and impartiality are more closely associated with the deontological theory. Option C is incorrect because it refers to the rights-based theory.

With Respect to Ethics, the Utilitarian Theory