1. Which of the following statements is closely associated with utilitarian ethical theory?

A. Having a moral intent and following the right rules is a better path to ethical conduct than achieving the right results.

B. In human behavior, the value of virtuous qualities is more important rather than formal rules or useful results.

C. A set of core values has been identified and these values can be meaningfully applied to a variety of personal and corporate decisions.

D. Whether an action is morally right will all depend on the act's consequences. Therefore, an action is morally right if majority of people benefit from it.

2. What statement would be incorrect from the lens of Cultural relativism? A. There is no conflict between traditional ethics and cultural relativism, ever.

B. The values and morality practiced by a community cannot be dismissed as wrong or inferior to those practiced elsewhere.

C. Values and morality are culture specificthey are just what the community believes and not the result of universal reason.

D. Pitfalls of ethical variation across cultures exist in in the world of international business and a US firm needs to be cognizant of these and steer clear of violating US laws, even when local rules permit certain behavior.

3. Which of the following groups is considered a subgroup ordinarily charged with assisting the board of directors in fulfilling its financial oversight responsibilities?

A. The Audit Committee.

B. Nominations and Governance Committee.

C. Senior Management.

D. Shareholders.

4. Which of the following is not one of the five Components of COSO Enterprise Risk Management Framework-2017?

A. Information, Communication & Reporting

B. Control environment

C. Performance

D. Strategy & Objective Setting

5. In a large public corporation, which of the following groups is most appropriate for evaluating internal control procedures?

A. Accounting management staff who report to the CFO

B. Operations management staff who report to the Chief operations officer

C. Internal audit staff who report to the Audit Committee of the Board of Directors

D. Security management staff who report to the chief facilities officer

6. Which of the following is a violation of segregation of duties in internal control?

A. An employee adds vendors and makes changes to a vendor master file.

B. An employee enters and approves purchase orders.

C. An employee matches invoices to purchase orders and receiving reports and applies coding of account distributions.

D. An employee receives goods from vendors and signs off on the deliveries.

7. Control activities constitute one of the five components of internal control described in the COSO Internal Control-Integrated Framework model. Control activities do not encompass

A. Performance reviews.

B. Information processing

C. Physical controls

D. Internal Audit function

8. Which of the following must be identified as a potential fraud risk during risk assessment by an external auditor during the financial statement audit?

A. Management override of controls.

B. Improper revenue recognition.

C. Collusion.

D. Falsification of documentation.

9. According COSO, which of the following components of Enterprise Risk Management defines an entitys Risk Appetite?

A. Governance & Culture

B. Performance

C. Strategy & Objective Setting

D. Information, Communication & Reporting

10.While internal control provides reasonable assurance of achieving the entity's objectives, limitations do exist. Such limitations may result from all the following except:

A. Complex Information Systems are used

B. Ability of management to override internal control

C. Reality that human judgment in decision making can be faulty and subject to bias

D. Ability of management, other personnel, and/or third parties to circumvent controls through collusion

11.Which of the following is not a step in Josephson Institute of Ethics Model ethical decision making?

A. Look at possible options by brainstorming a list of options.

B. Consider consequences of the choice, namely who and what will be affected by the choice and what good and what harm could the choice bring.

C. Ask to whom and what do you give your loyalties as a person and as a member of the Company.

D. Recognize the ethical decision and avoid making a rash decision.

12.Sarbanes-Oxley Act of 2002 stipulates the audit committee financial expert should have:

A. A CPA certification

B. Education and experience as a certified financial planner.

C. An understanding of internal control over financial reporting

D. Experience in the preparation of tax returns

13.The board members have a fiduciary duty to Act loyally and in the best interest of the corporation and shareholders, which includes not putting their interests above the companys and acting without personal economic conflict. In order to comply with a directors duty of loyalty to a corporation, what action(s) should a director take when presented with an opportunity that is also beneficial to the Corporation?

A. Reject the opportunity and not offer it to the corporation.

B. Accept the opportunity and not offer it to the corporation.

C. Accept the opportunity and disclose the acceptance to the corporation.

D. Offer the opportunity to the corporation and accept it if the corporation rejects.

14.Who has the oversight authority over PCAOB?

A. CFPB

B. FDIC

C. SEC

D. Federal Reserve

15.Accountants do not face ethical concerns when they work as

A. Tax Accountants

B. Management Accountants

C. External Auditors

D. None of the above

16.Financial Statements of publicly traded corporations are subject to the oversight of:

A. Public Company Accounting Oversight Board (PCAOB)

B. The Securities and Exchange Commission (SEC)

C. New York Stock Exchange (NYSE)

D. Federal Deposit Insurance Corporation (FDIC)

17.In their interactions with the surrounding community and larger world, a Corporations Social Responsibility includes all the following obligations except:

A. Ethical responsibility

B. Philanthropic responsibility

C. Legal responsibility

D. Employee responsibility

18.The question of what a person should be or become, rather than the question of what a person should do is the foundation of:

A. Egoism

B. Utilitarianism

C. Virtue Ethics

D. Deontology

19.Which of the following documents would most likely contain specific rules for the management of a business corporation?

A. Articles of incorporation

B. Bylaws

C. Certificate of authority

D. Shareholders agreement

20.The CEO of a publicly traded company is selected by

A. The shareholders.

B. Executive management.

C. The Board of Directors.

D. The Audit Committee.

II. True or False

21.Under conscious capitalism, profit and prosperity can and must go hand in hand with social justice and environmental stewardship. A. True B. False

22. A well designed and operated internal control can provide an absolute assurance regarding the achievement of an entitys objectives. A. True B. False

23.All publicly traded companies in the United States are legally mandated to follow COSO ERM framework in their risk assessment processes. A. True B. False

24.Duty of Loyalty requires directors to act in good faith and in the best interests of the corporation and its shareholders. A. True B. False

25.Every deliberate human action has ethical import. A. True B. False