Ethics for Accountants Exam Practice Tests
Course Introduction
Ethics for Accountants explores the fundamental principles and frameworks guiding ethical decision-making within the accounting profession. The course examines legal requirements, professional codes of conduct, and the social responsibilities of accountants, emphasizing the importance of integrity, objectivity, confidentiality, and professional competence. Students will analyze real-world cases involving ethical dilemmas faced by accountants, develop skills to recognize and respond to unethical behaviors, and gain an understanding of the impact of ethical lapses on businesses and stakeholders. This course prepares learners to uphold high ethical standards and contribute positively to the reputation and trustworthiness of the accounting field.
Recommended Textbook
Business and Professional Ethics for Directors Executives and Accountants 8th Edition by Leonard
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8 Chapters
160 Verified Questions
160 Flashcards
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2
Chapter 1: Ethics Expectations
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20 Verified Questions
20 Flashcards
Source URL: https://quizplus.com/quiz/17039
Sample Questions
Q1) Incomplete disclosure of the company's revenue recognition policy is an example of A) lack of transparency.
B) lack of integrity.
C) lack of accuracy.
D) All of these are correct.
E) None of these are correct.
Answer: A
Q2) Effective crisis management could represent
A) an opportunity to avoid costs.
B) an opportunity to change employees' perspectives on risk.
C) an opportunity to enhance the company's reputation.
D) All of these are correct.
E) None of these are correct.
Answer: C
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Chapter 2: Ethics & Governance Scandals
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20 Verified Questions
20 Flashcards
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Sample Questions
Q1) The overall requirement of the Internal Revenue Service Circular 230 is to ensure that tax professionals
A) know their clients.
B) always develop tax plans for their clients.
C) make tax planning suggestions that, even if they don't have a chance of success, will save the client some money in the short-term.
D) never develop tax shelters.
E) only be professional accountants.
Answer: A
Q2) Which of the following demonstrated extraordinary hubris?
A) Kenneth Lay
B) Bernie Ebbers
C) Arthur Andersen
D) Scott Sullivan
E) Kenneth Lay and Bernie Ebbers
Answer: E
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Chapter 3: Philosophers Contributions
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20 Flashcards
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Sample Questions
Q1) Which philosopher argued that self-interest motivates people to form peaceful civil societies?
A) Adam Smith
B) John Locke
C) Thomas Hobbes
D) Jeremy Bentham
E) John Rawls
Answer: C
Q2) There are two aspects of justice, but under which aspect is it argued that there should be a consistent application of law?
A) distributive justice
B) procedural justice
C) balance of justice
D) deontology
E) teleology
Answer: B
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Page 5
Chapter 4: Practical Ethical Decision Making
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20 Verified Questions
20 Flashcards
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Sample Questions
Q1) Pastin's approach adds which of the following concepts to stakeholder impact analysis?
A) rule ethics
B) ground rule ethics
C) end-point ethics
D) social contract ethics
E) All of these are correct.
Q2) Which of these values are the combinations of a value and the probability of its occurrence?
A) probable values
B) common values
C) present values
D) expected values
E) risk-adjusted values
Q3) Which of the following is NOT a stakeholder right?
A) life, health, and safety
B) to earn a reasonable return on an investment
C) freedom of speech
D) fair treatment before the law
E) All of these are stakeholder rights.
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Chapter 5: Corporate Ethical Governance & Accountability
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20 Flashcards
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Sample Questions
Q1) Which of the following is NOT an ethics risk management principle?
A) Normal definitions of risk are too narrow for stakeholder accountability.
B) Assign responsibility; develop follow-up processes and board review.
C) Discovery and remediation are essential.
D) The code of ethics must be reviewed by independent parties.
E) An ethics risk exists when expectations of stakeholders may not be met.
Q2) Which of the following is NOT a characteristic identified by forensic experts in prospective fraud situations?
A) high intelligence
B) greed
C) need for whatever is taken
D) opportunity to take advantage
E) low probability of being caught
Q3) A fundamental problem examined by agency theory is how it is possible to align
A) shareholders' and stakeholders' goals.
B) manager's and stakeholders' goals.
C) shareholders' and managers' goals.
D) principal's and shareholders' goals.
E) agent's and stakeholders' goals.
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Page 7
Chapter 6: Professional Accounting in the Public Interest
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20 Flashcards
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Sample Questions
Q1) Professional accountants, in their fiduciary role, owe primary loyalty to
A) the accounting profession.
B) the client.
C) the public interest.
D) government regulations.
E) All of these are correct.
Q2) A professional accounting firm has several audit and tax clients; however, a single client represents 40% of the firm's revenue. This situation could result in which of the following threats to professional independence?
A) self-review
B) intimidation
C) advocacy
D) familiarity
E) self-interest
Q3) Which of the following values is NOT necessary for an accounting professional?
A) honesty
B) integrity
C) objectivity
D) a primary commitment to self-interest
E) All of these are necessary.
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Chapter 7: Managing Ethics Risks & Opportunities
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Sample Questions
Q1) An employee in charge of writing checks to suppliers in a manufacturing firm steals small sums of money every month by writing himself a check for the total of the discounts he negotiates with the company's suppliers. This type of rationalization is MOST likely based on
A) denial of responsibility.
B) appeal to higher loyalties.
C) condemnation of the condemners.
D) everyone else is doing it.
E) entitlement.
Q2) Which of the following is a performance component recommended by the Global Reporting Initiative relates to customer health and safety, marketing communications and customer privacy?
A) labour practices
B) human rights
C) product responsibility
D) society
E) customer rights
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Chapter 8: Subprime Lending Fiasco Ethics Issues
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20 Verified Questions
20 Flashcards
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Sample Questions
Q1) The movie The Big Short is the story of a few clever investors who realized that security markets were about to crash, and they
A) invested in CDOs.
B) invested in CDSs.
C) invested in NCDSs.
D) sold stocks short.
E) bought gold.
Q2) Mark-to-market accounting is incorrectly characterized as A) relevant for management compensation purposes.
B) relevant for valuation purposes.
C) relevant to investors.
D) sometimes misleading.
E) responsible for the subprime lending fiasco.
Q3) Early in 2008, mark-to-market accounting provisions caused the banks to A) revalue their portfolio downwards.
B) be in jeopardy of falling below the regulatory capital requirements.
C) restrict new loans.
D) revalue their portfolio downwards, and restrict new loans.
E) All of these are correct.
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