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business
ethical obligations decision

Questions and Answers of Ethical Obligations Decision

Perhaps the most unusual thing about this case is that _______________.a. The fraud went undetected for so longb. Three sets of different external auditors were involved during the fraudc. The CEO
Organizational culture can influence moral behavior through the “stacked deck” phenomenon. Explain how this might work and lead to a defense of subordinates’ behavior we might call “They made
Natalie’s next step should probably be to _____________.a. Continue employment as though nothing has happenedb. Report to the external auditorsc. Report to the SECd. Seek legal advice
1. What are the main arguments that Jerry and Sharon will need to counter? That is, what are the reasons and rationalizations they will need to address?2. What is at stake should they not convince
In deciding what to do next, Natalie as a CPA should consider the ____________.a.Ethical Responsibilities of a CPA Professional Code of Conduct 102-4b. Ethical Responsibilities of a CPA under AICPA
Explain what you think each of the following statements means in the context of moral development.a. How far are you willing to go to do the right thing?b. How much are you willing to give up to do
According to the 2013 National Business Ethics Survey, 60 percent of workplace misconduct involved someone with managerial authority. Roughly 25 percent of observed misconduct involved senior
If Natalie Garson assumes someone else will report the apparent authorized transfer to Vic Construction, she would be subject to _____________.a. The whistleblower effectb. The tone at the top
1. What role did cultural relativism and situational ethics play in the Olympus fraud? Explain.2. Describe the shortcomings in corporate culture at Olympus?3. Did Michael Woodford violate his ethical
Explain the role of integrity in workplace ethics.
Whistleblowers who meet the criteria are eligible to receive an award based on what was collected as a result of the monetary sanctions. This can vary from ___________.a. 1 to 10 percentb. 10 to 30
1. To whom do John and Laskey owe their ultimate responsibility? Explain.2. If John were to agree not to report this embezzlement to the police or disclose it in the annual report and prospectus,
In an interview on Philosophy Talk, a national syndicated radio program, Edward Snowden, the National Security Agency whistleblower, was asked whether he sees himself as a hero or a traitor,
To encourage various groups to come forward and report fraud, Dodd–Frank extended whistle-blowing privileges and rewards to which of the following?a. Internal auditorsb. External auditorsc. The
1. Put on "Your Thinking Cap" and explain how the provisions of the Sarbanes-Oxley Act might have helped to detect the fraud.2. What anti-fraud controls might have helped detect the fraud. Why?3.
Explain the following statements: (1) It has been argued that an organization that does not support those that whistle blow because of violation of professional standards is indicative of a failure
A whistleblower is defined as a person who provides information to the _________ about a violation of the securities law.a. PCAOBb. Audit committee of the firm involvedc. SECd. External audit firm
Burchard’s Ethical Dissonance Cycle Model suggests this was a failure of which of the following?a. Low Organization Ethics, Low Individual Ethics Low Lowb. High Organizational Ethics, Low
1. Explain the following concepts in the context of the case and how it relates to individual and organizational factors that contribute to fraud:Rationalizations for unethical actions.Stakeholder
What are the ethical lessons to be learned from the scandal at Wells Fargo?
One might say that each group was operating at which ethical level?a. Rest’s notion of Law and Order Stage 4b. Kohlberg’s Moral Sensitivityc. Thorne’s Moral Development Leading to Ethical
The Sadhu was handed off from one group to another due to what?a. The lack of an organizational ethical cultureb. The lack of Koh and Boo’s ethical climatec. The lack of a common corporate
Explain how an overconfidence bias might influence an auditor’s judgment about the proper balance sheet value of inventory.
Select one of the rationalizations for Enron’s actions identified by Andy Fastow in the chapter-opening and explain how you would counteract that statement by emphasizing its ethical deficiencies.
One expression in particular seems to sum up why the accounting frauds at companies such as Enron, WorldCom, and HealthSouth were allowed to persist for so long: “If I Do It, I Must Do It Again.”
Wald, Plotkin, and Sugofsky would do well to follow which model of ethical reasoning?a. Kohlbergb. Restc. Kidderd. Thorne
By suggesting this is operating cash flow, Wald is operating under:a. Instrumental virtue.b. Rest’s idea of the character.c. Kohlberg’s idea of Law and Order.d. The GVV idea of Locus of Loyalty.
The purchase of the motors is a(n):a. Operating cash outflow.b. Investing cash outflow.c. Financing cash outflow.d. Non-cash transaction.
1. Explain the role of cognitive shortcomings in the WorldCom fraud and how social and organizational pressures influenced Betty Vinson's actions.2. The SEC action against Vinson was deemed
If Jackson Daniels decides to do something, what is the one element missing in the chain of communication thus far?a. The failure to report to Internal Auditb. The failure to report to the
1. Identify which biases and or stereotypes might exacerbate the type of behavior described in this case.2. What responsibility does a college or university have in insuring all students feel safe
What is the likely result of Pete’s “zero tolerance of employees making mistakes”?a. Fewer mistakes by employees.b. Implementation of the Ethical Decision Making Model.c. No need for
Jonathan Walker is probably failing which of the Rest Stages?a. Sensitivityb. Judgmentc. Motivationd. Character
1. Explain how incrementalism might influence Ricardo's position with respect to the not so subtle statement by Norman Baitz.“I’m sorry, Lucy. That’s the client's position,” Ricardo
Do you believe all sexual relationships should be forbidden in the workplace? Use ethical reasoning to support your view.
This is a Giving Voice to Values case because:a. Alex is demonstrating instrumental virtue.b. Gregory is demonstrating moral intensity.c. Michael is demonstrating sensitivity.d. Michael is
1. Why do you think this type of behavior was allowed to go on for nearly thirty years?2. What biases do you think may have played a role in the decisions made by both victims and others who were
In 2016, an incident of price gouging raised issues similar to those in the Heinz and the Drug discussion in this chapter. Turing Pharmaceuticals purchased the right to the prescription drug Diaprim,
Michael has ignored which of the Kohlberg Stages of Moral Development?a. Sensitivityb. Moral Intensityc. Intellectual Virtued. Social Contract
1. Should you discuss the matter first with Troy before responding to Joyce? Explain.2. Assume Kristen is a Certified Management Accountant and member of the Institute of Management Accountants. As
Back in August 2017, a leaked memo by Google employee James Damore alleged that the company was discriminating in its hiring practices based on race or gender. He claimed that Google was "pressing
Giving Voice to Values links ethical intent and ethical action to which of the following?a. Kohlberg’s Stages of Moral Developmentb. Rest Four Stage Modelc. Jones Moral Intensity Modeld. Libby and
On November 21, 2017, a story broke that New Yorker reporter Ronan Farrow had alleged that Harvey Weinstein used lengthy nondisclosure agreements attached to hefty monetary settlements to prevent
Barbara is reminded that “Jessica is a stickler for keeping to the budget.” At what level is Jessica operating with this point of view that potentially impedes implementing proper audit
How do theories about the world, other people, and ourselves influence ethical decision making?
Barbara is responding to which of the Kohlberg stages?a. Social Contractb. Fairness to Othersc. Avoidance of Punishmentd. Both Social Contract and Fairness to Others
Why do you think good people sometimes do bad things? Explain.
Diane is operating at which of the Kohlberg stages?a. Social Contractb. Fairness to Othersc. Satisfying One’s Own Needsd. Universal Ethical Principles
Mark Twain once said, “If you tell the truth, you don’t have to remember anything.” Explain what you think Twain meant by this statement and how it addresses one’s character.
Assume you are preparing for an interview with the director of personnel. Given the following questions, craft a response that you would feel comfortable giving for each one. Describe an
In the discussion of loyalty in this chapter, a statement is made that “your ethical obligation is to report what you have observed to your supervisor and let her take the appropriate action.” We
Do you think a CPA can justify allowing the unethical behavior of a supervisor by claiming, “It’s not my job to police the behavior of others?”
CPAs who make false statements in advertisements violate the AICPA rules of conduct. Do you think it would be ethical for a CPA to hire a person to advertise in this manner for them? Why or why not?
Using the concept of justice that holds equals should be treated equally, unequal unequally, discuss how an auditor would assess the equality of interests in the financial reporting process.
Do you agree with our decision to omit Rand’s Rational Egoism as a basis for making ethical judgments in accounting? Explain.
Socrates said that the best way to solve a problem is by thinking. Do you agree? Is thinking enough to solve most problems that arise in accounting? Explain.
Gloria Hernandez’s situation is analogous to which real-world figure?a. Sherron Watkinsb. Betty Vinsonc. Lea Fastowd. Dave Meyer
For years, the Baseball Hall of Fame has officially steered clear of the question as to how voters should handle the candidacies of players connected to performance-enhancing drugs. On November 21,
The question of whether to capitalize or expense in this situation most closely parallels the case involving which company?a. Enronb. Tycoc. ZZZZ Bestd. WorldCom
The 2016 Deloitte Millennial Survey of 7,500 college educated, full-time employees from 29 countries found that the most significant factor influencing respondents' decision-making at work was their
Jose and Emily would probably have to report this incident under which Principles section of the AICPA Code of Conduct?a. Public Interestb. Integrityc. Objectivity and Independenced. Due Care
If Jose and Emily decide to report this incident to the school, they would be operating under which Pillar of Character?a. Caringb. Respectc. Responsibilityd. Fairness
Do you think it is ethical for a prospective employer to investigate your social media footprint in making a hiring decision? What about monitoring social networking activities of employees while on
The manager seems to be failing in regard to which Pillar of Character?a. Caringb. Respectc. Responsibilityd. Fairness
1. Do you think it was right for Cyndie to tell the Japanese tourist that “her coworker had to go home early because he was sick?”2. Cyndie decided to speak with Jeffrey. From an ethical
One explanation about rights is that “there is a difference between what we have the right to do and what is the right thing to do.” Explain what you think is meant by this statement. Do you
Giles probably violated which of the IMA Standards?a. Competenceb. Confidentialityc. Integrityd. Credibility
Ethics in accounting is based on which of the following?a. Respectb. Fairnessc. Responsibilityd. Integrity
1. What values are most important to you in deciding on a course of action? Why?2. Who are the stakeholders in this case and how might they be affected by your course of action?3. What would you do
Is there a difference between cheating on a math test, pocketing an extra $10 from the change given to you at a restaurant, and using someone else’s ID to get a drink at a bar?
Herb Morris should probably make his decision about what to do regarding Giles and Regas using what theory?a. Deontologyb. Justicec. Virtued. Teleology
Is it ever appropriate to lie to someone? Explain why or why not using ethical reasoning. Give one example of when you believe lying might be justified.
One might say Giles was acting on which ethical theory?a. Utilitarianismb. Deontologyc. Virtued. Teleology/egoism
1. What are the loyalty obligations of both parties in this case?2. Assume that you were in Gloria Hernandez’s position. What would motivate you to speak up and act or to stay silent? Would it make
In respect to Herb Morris as a Managing Partner, Giles and Regas’s failure to adhere to firm rules most closely breaks which of the Josephson Pillars?a. Trustworthinessb. Citizenshipc. Respectd.
1. Did Ed commit an act discreditable to the profession? Explain.2. Does the case have any bearing on Ed's ability to provide competent services to his client and serve the public interest? Why or
The students were most likely operating under which moral philosophy?a. Deontology or equal respect to all personsb. Hobbes and Locke’s theories of rightsc. Rawls’ theory of justiced. A subset of
We could best examine the actions of the students in this case by examining student _______.a. Ethicsb. Moralsc. Norms and valuesd. Laws
1. What potential consequences are there for Veronica, the internship program, the other employers, the university, and other students should Veronica not honor her commitment?2. Analyze Veronica’s
Students who engage in cheating usually rationalize their behavior via what?a. Ethical relativismb. Situation ethicsc. Cultural valuesd. Responsibility
A common ethical dilemma used to distinguish between philosophical reasoning methods is the following. Imagine that you are standing on a footbridge spanning some trolley tracks. You see that a
Students who engaged in cheating would have probably violated which of the following Six Pillars of Character more than the others?a. Trustworthinessb. Respectc. Responsibilityd. Fairness
1. Using Josephson’s Six Pillars of Character, which of the character traits (virtues) apply to the May 2012 Harvard cheating scandal and how do they apply with respect to the actions of each of
Assume you are asked in an interview: Give me one word that describes you best? Then, explain why it is important ineffective leadership.
It has been said that “Businesses don’t fail – Leaders do.” Explain what this means.

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