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Student: ___________________________________________________________________________

1. Bells 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

2. Bells 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.

3. 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

4. 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.

5. Which of the following demonstrates the least professional behavior based on Bells 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

6. 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.

7. Depreciation is the periodic allocation of an assets cost to the periods which benefit from the assets 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. 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.

15. 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 firms 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.

16. 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.

17. 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

18. 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

19. 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

20. 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

21. 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.

22. Arriving at moral standards that regulate right and wrong conduct is called: A. Metaethics. B. Normative ethics. C. Applied ethics. D. Obeying the law.

23. 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.

24. 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.

25. Consider the following statements as you respond to the next question:

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.


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


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


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


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


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

31. Which school of ethical thought follows the belief that the ends justify the means? A. Utilitarian B. Rights and duties C. Justice D. Virtues

32. 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

33. 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

34. Which of the following statements is most reflective of the utilitarian school of ethical thought? A. Lying is wrong. B. Lying is OK if its done to avoid hurting someones feelings. C. Both A and B D. Neither A nor B

35. Normative ethics can follow which school of ethical thought? A. Utilitarian or justice B. Rights and duties C. Virtues D. Any of the above

36. 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 Freds response? A. Utilitarian B. Rights and duties C. Normative D. Applied

37. 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

38. 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.

39. Lee was caught using a work computer for an inappropriate personal purpose. He commented: I wasnt hurting anyone, since I was on my lunch break. Lees justification indicates that he is following which school of ethical thought? A. Rights and duties B. Utilitarian C. Virtues D. Normative

40. 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

41. 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.

42. 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.

43. 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

44. 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.

45. 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, Joeys 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.

46. 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.

47. 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.

48. 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.

49. 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.

50. 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.

51. 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. ________________________________________

52. The steps in the Mintz and Morris model for making ethical decisions are listed below. Number them in the order of their occurrence based on the information in the text. ____ ____ ____ ____

53. Bells characteristics of a professional are listed below on the right. Match each example on the left with the most appropriate characteristic on the right. Use each characteristic exactly once.

1. Samantha compared the costs and benefits of a set of internal controls.

c. Communicates effectively

____

2. Joshua calculated straight-line depreciation.

a. Actively seeks additional knowledge

____

3. Robert refused to falsify a tax return.

f. Recognizes the influence of political, social, economic, legal and regulatory forces

____

4. Albert wrote an e-mail to a prospective new client.

b. Appropriately uses technical knowledge

____

5. Hal participated in an online conference about tax law changes.

e. Integrates knowledge from many disciplines

____

6. Jordan considered the impact of foreign currency exchange rates on an investment.

d. Exhibits ethical professional behavior

____

7. Maria used the systems development life cycle to design a new AIS.

g. Thinks rationally, logically and coherently

____

54. The chapter discussed four schools of ethical thought: (a) justice, (b) rights and duties, (c) utilitarian and (d) virtues. Which school best describes each of the following independent items? 1. As long as a decision maker is not harming anyone, he should be able to do as he pleases. 2. Hassan told Rosie to 'mind her own business' when she discovered he had overestimated his expenses for a recent business trip. 3. Peter embezzled cash from his employer to pay for his grandmother's medicine. 4. Rewards should be based on performance. 5. Rob believed that leaving out unfavorable information from a report was the same as lying, and therefore would not do it. 6. Sarah prepared a graph of her division's profits to use when asking her supervisor for a raise. 7. Stealing is immoral. 8. The outcome of a decision is more important than the decision itself.

55. 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.

56. 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 companys employees and other groups. 3) Lenise laid out three potential responses for a violation of her companys 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.

57. Consider each independent situation below. For each one, indicate the school of ethical thought the decision maker is using; circle one word or phrase that led you to your conclusion. 1. Charles justified cheating on his income taxes based on the benefits his family would receive as a result. 2. Hassan told Rosie to mind her own business when she discovered he had overestimated his expenses for a recent business trip. 3. Peter embezzled cash from his employer to pay for his grandmothers medicine. 4. Rob believed that leaving out unfavorable information from a report was the same as lying, and therefore would not do it. 5. Sarah prepared a graph of her divisions profits to use when asking her supervisor for a raise.

58. The chapter discussed three subdivisions of the broad field of ethics: metaethics, normative ethics and applied ethics. Indicate which of the following statements would relate to normative ethics as the term is used in the accounting profession. ____ Alejandro reviewed the ethical code of the Institute of Management Accountants to determine what action he should take when faced with an ethical dilemma. ____ Jim, the chief financial officer of BRT Corporation, is a licensed certified public accountant. He reviewed the provisions of the Sarbanes-Oxley Act to determine the consequences he could face for not fulfilling his ethical obligations under the Act. ____ Jodie, a certified fraud examiner, compared historical versions of the Association of Certified Fraud Examiners ethical code with the current version to gain an understanding of how the code was developed. ____ Kristin is a certified information systems auditor. She called the AICPAs ethics hotline to discuss a potential ethical violation by Stewart, a co-worker and licensed certified public accountant. ____ Louise, a Certified Public Accountant, discussed the issue of capital punishment with a group of co-workers at her firm. ____ Melissa, an internal auditor for the City of Bufflufia, looked up the Mintz and Morris model for guidance in resolving an ethics issue.

59. Bell suggested seven 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.

Original statement

Revised statement

Bell characteristic

Daryl delivered the same presentation on pension accounting to a group of experienced CPAs and a group of retired teachers.

In completing his required continuing professional education for CPA licensure, Jack repeated courses he had taken while in college.

Opal ignored clear evidence that her co-worker was participating in a Ponzi scheme.

When asked what impact an unstable government might have on foreign currency exchange rates, Marie stated it would have no impact at all.

A piece of equipment had a cost of $10,000, salvage value of $2,000 and an expected useful life of four years. Thomas calculated straight-line depreciation at $2,500 per year.

60. 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.

Original statement

Revised statement

McDonald characteristic

a. Joey ignored his companys standard audit practices and invented his own to make audits more efficient.

b. Nancy told a client that the salvage value of fixed assets should always be set to zero for the purpose of calculating depreciation.

c. May, a certified public accountant, made an agreement with an audit client to make the clients financial statements look as good as possible.

d. Elliott is the corporate controller of ARI Corporation. He referred to the AICPA Code of Professional Conduct in resolving an ethical dilemma related to budgeting.

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

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

63. Miguel had just been promoted to Director of Accounts Receivable in the accounting department of TPC Corporation. His first responsibility was to develop and explain a better system for estimating and writing off bad debts. Without referring to the technical aspects of those tasks, discuss four things Miguel should do based on Bells characteristics of a professional.

64. 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 Taylors actions. Suggest a better approach for dealing with the ethics issue in her company; ensure that your suggestions are clearly applied to Taylors situation.

65. 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.

ch16 Key

1. Bells 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

BLOOM: KnowledgeDifficulty: EasyHurt - Chapter 16 #1LO 1

2. Bells 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.


3. 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

BLOOM: ComprehensionDifficulty: MediumHurt - Chapter 16 #3LO 1

4. 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.


5. Which of the following demonstrates the least professional behavior based on Bells 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

BLOOM: ApplicationDifficulty: MediumHurt - Chapter 16 #5LO 1

6. 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.


7. Depreciation is the periodic allocation of an assets cost to the periods which benefit from the assets 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.

BLOOM: AnalysisDifficulty: HardHurt - Chapter 16 #7LO 1

8. 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.


9. 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.

Bloom: SynthesisDifficulty: HardHurt - Chapter 16 #9LO 1

10. 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.


11. 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.


12. 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.


13. 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.


14. 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.


15. 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 firms 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.


16. 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.


17. 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


18. 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


19. 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


20. 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


21. 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.

BLOOM: KnowledgeDifficulty: EasyHurt - Chapter 16 #21lo 3

22. Arriving at moral standards that regulate right and wrong conduct is called: A. Metaethics. B. Normative ethics. C. Applied ethics. D. Obeying the law.


23. 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.

BLOOM: ComprehensionDifficulty: MediumHurt - Chapter 16 #23lo 3

24. 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.



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.

BLOOM: ApplicationDifficulty: MediumHurt - Chapter 16 #25lo 3


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

BLOOM: ApplicationDifficulty: MediumHurt - Chapter 16 #26lo 3


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

BLOOM: AnalysisDifficulty: HardHurt - Chapter 16 #27lo 3


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



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

Bloom: SynthesisDifficulty: HardHurt - Chapter 16 #29lo 3


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

Bloom: SynthesisDifficulty: HardHurt - Chapter 16 #30lo 3

31. Which school of ethical thought follows the belief that the ends justify the means? A. Utilitarian B. Rights and duties C. Justice D. Virtues


32. 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


33. 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


34. Which of the following statements is most reflective of the utilitarian school of ethical thought? A. Lying is wrong. B. Lying is OK if its done to avoid hurting someones feelings. C. Both A and B D. Neither A nor B


35. Normative ethics can follow which school of ethical thought? A. Utilitarian or justice B. Rights and duties C. Virtues D. Any of the above


36. 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 Freds response? A. Utilitarian B. Rights and duties C. Normative D. Applied


37. 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


38. 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.


39. Lee was caught using a work computer for an inappropriate personal purpose. He commented: I wasnt hurting anyone, since I was on my lunch break. Lees justification indicates that he is following which school of ethical thought? A. Rights and duties B. Utilitarian C. Virtues D. Normative


40. 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


41. 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.


42. 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.


43. 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


44. 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.


45. 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, Joeys 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.


46. 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.


47. 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.


48. 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.


49. 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.


50. 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.


51. 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 philosophy b. metaethics c. normative ethics d. applied ethics


52. The steps in the Mintz and Morris model for making ethical decisions are listed below. Number them in the order of their occurrence based on the information in the text. 4 2 3 1


53. Bells characteristics of a professional are listed below on the right. Match each example on the left with the most appropriate characteristic on the right. Use each characteristic exactly once.

1. Samantha compared the costs and benefits of a set of internal controls.

c. Communicates effectively

4

2. Joshua calculated straight-line depreciation.

a. Actively seeks additional knowledge

5

3. Robert refused to falsify a tax return.

f. Recognizes the influence of political, social, economic, legal and regulatory forces

6

4. Albert wrote an e-mail to a prospective new client.

b. Appropriately uses technical knowledge

2

5. Hal participated in an online conference about tax law changes.

e. Integrates knowledge from many disciplines

7

6. Jordan considered the impact of foreign currency exchange rates on an investment.

d. Exhibits ethical professional behavior

3

7. Maria used the systems development life cycle to design a new AIS.

g. Thinks rationally, logically and coherently

1


54. The chapter discussed four schools of ethical thought: (a) justice, (b) rights and duties, (c) utilitarian and (d) virtues. Which school best describes each of the following independent items? 1. As long as a decision maker is not harming anyone, he should be able to do as he pleases. 2. Hassan told Rosie to 'mind her own business' when she discovered he had overestimated his expenses for a recent business trip. 3. Peter embezzled cash from his employer to pay for his grandmother's medicine. 4. Rewards should be based on performance. 5. Rob believed that leaving out unfavorable information from a report was the same as lying, and therefore would not do it. 6. Sarah prepared a graph of her division's profits to use when asking her supervisor for a raise. 7. Stealing is immoral. 8. The outcome of a decision is more important than the decision itself.


55. 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.


56. 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 companys employees and other groups. 3) Lenise laid out three potential responses for a violation of her companys 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.


57. Consider each independent situation below. For each one, indicate the school of ethical thought the decision maker is using; circle one word or phrase that led you to your conclusion. 1. Charles justified cheating on his income taxes based on the benefits his family would receive as a result. 2. Hassan told Rosie to mind her own business when she discovered he had overestimated his expenses for a recent business trip. 3. Peter embezzled cash from his employer to pay for his grandmothers medicine. 4. Rob believed that leaving out unfavorable information from a report was the same as lying, and therefore would not do it. 5. Sarah prepared a graph of her divisions profits to use when asking her supervisor for a raise.


58. The chapter discussed three subdivisions of the broad field of ethics: metaethics, normative ethics and applied ethics. Indicate which of the following statements would relate to normative ethics as the term is used in the accounting profession. __X__ Alejandro reviewed the ethical code of the Institute of Management Accountants to determine what action he should take when faced with an ethical dilemma. __X__ Jim, the chief financial officer of BRT Corporation, is a licensed certified public accountant. He reviewed the provisions of the Sarbanes-Oxley Act to determine the consequences he could face for not fulfilling his ethical obligations under the Act. _____ Jodie, a certified fraud examiner, compared historical versions of the Association of Certified Fraud Examiners ethical code with the current version to gain an understanding of how the code was developed. __X__ Kristin is a certified information systems auditor. She called the AICPAs ethics hotline to discuss a potential ethical violation by Stewart, a co-worker and licensed certified public accountant. _____ Louise, a Certified Public Accountant, discussed the issue of capital punishment with a group of co-workers at her firm. _____ Melissa, an internal auditor for the City of Bufflufia, looked up the Mintz and Morris model for guidance in resolving an ethics issue.


59. Bell suggested seven 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.

Original statement

Revised statement

Bell characteristic

Daryl delivered the same presentation on pension accounting to a group of experienced CPAs and a group of retired teachers.

In completing his required continuing professional education for CPA licensure, Jack repeated courses he had taken while in college.

Opal ignored clear evidence that her co-worker was participating in a Ponzi scheme.

When asked what impact an unstable government might have on foreign currency exchange rates, Marie stated it would have no impact at all.

A piece of equipment had a cost of $10,000, salvage value of $2,000 and an expected useful life of four years. Thomas calculated straight-line depreciation at $2,500 per year.


60. 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.

Original statement

Revised statement

McDonald characteristic

a. Joey ignored his companys standard audit practices and invented his own to make audits more efficient.

b. Nancy told a client that the salvage value of fixed assets should always be set to zero for the purpose of calculating depreciation.

c. May, a certified public accountant, made an agreement with an audit client to make the clients financial statements look as good as possible.

d. Elliott is the corporate controller of ARI Corporation. He referred to the AICPA Code of Professional Conduct in resolving an ethical dilemma related to budgeting.


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


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


63. Miguel had just been promoted to Director of Accounts Receivable in the accounting department of TPC Corporation. His first responsibility was to develop and explain a better system for estimating and writing off bad debts. Without referring to the technical aspects of those tasks, discuss four things Miguel should do based on Bells characteristics of a professional.


64. 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 Taylors actions. Suggest a better approach for dealing with the ethics issue in her company; ensure that your suggestions are clearly applied to Taylors situation.


65. 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.


ch16 Summary

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BLOOM:Analysis

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BLOOM:Application

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BLOOM:Comprehension

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BLOOM:Knowledge

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Bloom:Synthesis

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Difficulty:Easy

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Difficulty:Hard

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Difficulty:Medium

26

Hurt-Chapter16

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LO1

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LO2

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lo3

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LO4

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LO5

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