1) Ethics are 1) A) a set of moral principles or values. B) not formed by life experiences. C) always incorporated in laws. D) needed in the professions, but is not needed for society in general. 2) ) means that a person acts according to conscience, regardless of the situation 2) A) Integrity B) Caring C) Respect D) Fairnes 3) Which of the following is a prescribed set of moral principles or values? 3) A) laws and regulations B) codes of conduct within an organization C) codes of business ethics for professional groups D) all of the above 4 A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to 4) A) identify the ethical issues from the facts. B) obtain the relevant facts C) identify the alternative actions available D) determine who will be affected by the outcome of the dilemma. 5) Which of the following factors does not contribute to the number of lawsuits against auditors? A) an increased consciousness by the SEC for its responsibility for protecting investors 5) interests B) the simplicity of auditing and accounting functions C) growing awareness of the responsibilities of public accountants by users of financial statements D) large civil court judgments against CPA firms awarded in a few cases 6) In the performance of an audit, a CPA 6) A) must exercise due professional care in the performance of their audit responsibilities. B) must strictly follow GAAP for privately held clients. C) is legally liable for detecting an immaterial client fraud D) must exercise constructive professional care in the performance of their audit responsibilities