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Need Help to solve each solution as follow: A fear of God The worship of one true God who directs our moral and ethical behaviors

Need Help to solve each solution as follow:

A fear of God

The worship of one true God who directs our moral and ethical behaviors

Act in accordance with the teachings in your religions holy book and that is all that is needed to live an ethical life

2. When writing a paper or responding to discussion questions, which of the following is a good guide to follow?

Use direct quotations only if you have a good reason to do so. Most of your paper should be in your own words

Use as many quotes as you can to show that your paper has been well researched

Use as many quotes as you can to show that your paper is supported by authoritative sources and is not just your thoughts

Use quotes selectively, using only quotes that you totally agree with

Freely use words of other authors and from other sources, referencing the source only if it adds credibility to your paper

3. What does Cynthia Coopers experience at WorldCom illustrate to us?

That the internal audit department is most effective in discovering fraud if it reports directly to the CFO

That the internal audit department is most effective in discovering fraud if it reports directly to the CEO

That the internal audit function is the primary tool for preventing fraud in an organization

That if the head of the internal audit department is a CPA, it is more likely fraud will be detected, if fraud exists

How the internal audit function should work and how a person of integrity can put a stop to financial fraud

4. What does Betty Vinsons experience at WorldCom illustrate to us?

Had Vinson refused to do what she was asked, she would likely have kept her job and the fraud at WorldCom would not have taken place

To save herself, once Vinson became a part of the fraud, she should have quit her job and left WorldCom without telling anyone what was happening

It is not unusual for someone who is genuinely a good person like Vinson to become a part of a financial statement fraud when faced with pressure from her boss, the opportunity to commit the fraud, and a rationalization that she will only be required to make these fraudulent entries this one time

Taking the first step in committing fraudulent entries would usually have not gotten Vinson in trouble since in most cases she would only have been asked to make these fraudulent entries one time

Vinson should not have been punished for her actions because she was only following the directions of her bosses who were more experienced than her in generally accepted accounting principles

5. Which of the following best prepares you to face ethical dilemmas you are likely to encounter in your career?

A strong religious belief system is all you need to guide you to an ethical career

An understanding of ethical philosophies and an understanding of professional codes such as the AICPA Code of Professional Conduct are all you need to prepare you to face ethical dilemmas

Strong morals, an understanding of ethical philosophies, a knowledge of professional codes such as the AICPA Code of Professional Conduct, and an understanding of likely consequences of not acting ethically are all you need to prepare you to face ethical dilemmas

Strong morals, an understanding of ethical philosophies, a knowledge of professional codes such as the AICPA Code of Professional Conduct, an understanding of likely consequences of not acting ethically, and an integrated decision-making process that leads you to putting action to your beliefs are all needed to enable you to face ethical dilemmas you are likely to face in your career

While the cases, philosophies, and guidelines weve studied are interesting, you are unlikely to use any of these in your career because it is highly unlikely you will be faced with any ethical dilemmas in your career

6.

The Josephson Institute of Ethics identifies Six Pillars of Character that provide a foundation to guide ethical decision making. Which of the following are the ethical values making up the six pillars?

Trustworthiness, Honesty, Integrity, Reliability, Loyalty, and Respect

Honesty, Integrity, Reliability, Loyalty, Respect, and Responsibility

Trustworthiness, Respect, Responsibility, Fairness, Caring, and Citizenship

Honesty, courage, compassion, generosity, fidelity, and integrity

Ethics, ideals, dedication to the common good, virtues, dispositions, and character traits

7. The next four questions relate to the modern moral philosophies we studied and applied to resolving ethical issues in business: teleology, deontology, justice, and virtue ethics.

What is the difference between an egoist and an enlightened egoist?

Egoist take actions that benefit only themselves while enlightened egoists take actions that only benefit others

An egoist will make decisions to maximize their own self-interest while an enlightened egoist will make decisions to maximize the interests of others without considering their own self-interest

An egoist will make decisions to maximize their own self-interest while an enlightened egoist will consider the interests of others although their own self-interest remains paramount

Egoism defines ethical behavior solely by consequences for the decision maker while enlightened egoism defines ethical behavior solely be consequences for others

Egoists are inherently unethical while enlightened egoists are inherently ethical

8. What is the difference between Act-Utilitarianism and Rule-Utilitarianism?

Act-Utilitarianism evaluates consequences of action on the decision maker while Rule-Utilitarianism evaluates consequences of rules on other stakeholders

Act-Utilitarianism evaluates which act provides the greatest net benefit to stakeholders while Rule-Utilitarianism selects the action that conforms to the correct moral rule that produces the greatest net benefit

Act-Utilitarianism is focused solely on acts of the decision maker with no thought given to the consequences of ones actions while Rule-Utilitarianism is focused solely on rules followed by the decision maker

Act-Utilitarianism is unethical while Rule-Utilitarianism is ethical

All of the above describe differences between Act-Utilitarianism and Rule-Utilitarianism

9. hich of the following statements describes the moral philosophy of Deontology?

Deontology focuses on the rights of individuals and on the duties of the decision maker associated with a particular behavior, rather than on its consequences

Deontology allows exceptions to moral absolutes if required to achieve desired consequences

Deontology stresses consequences to stakeholders

Deontology also stresses consequences to the decision maker

All of the above statements describe the moral philosophy of Deontology

10. Which of the following statements describe Virtue Ethics?

Judgements are made not by applying rules, but by possessing traits that enable the decision maker to act for the good of others

Only method where ethical reasoning methods virtues apply both to the decision maker and the decision

Similar to Principles of AICPA Code of Professional Conduct

Virtues may conflict, requiring choices to be made

All of the above statements describe Virtue Ethics

11. The next two questions relate to Kohlbergs Stages of Moral Development.

Kohlberg studied how individuals develop as they grow older through a sequential and hierarchical series of cognitive stages that characterize the way they think about ethical dilemmas. Kohlberg believed that at higher Levels and higher Stages within these Levels, that decisions are thought to be morally better.

The four ethical judgements described for Teleology fit best with which Stages of Kohlberg?

Teleology is the same as Kohlbergs Stage 6

Rule-Utilitarianism is the same as Kohlbergs Stage 4

Enlightened egoism is the same as Kohlbergs Stage 3

Egoism is the same as Kohlbergs Stage 2

All of the above describe the fit between Teleology and Kohlbergs Stages of Moral Development

12. Which of the following statements describes Kohlbergs Stage 6?

Kohlberg was still working on Stage 6 at the time of his death but he believed that this Stage rarely occurred

Individuals at Stage 6 believe there are inalienable rights which are universal in nature and consequence

An example of Stage 6 is Kants categorical imperative, Act only according to that maxim by which you can at the same time will that it would become a universal law.

A person at Stage 6 believes that right and wrong are determined by universal ethical principles that everyone should follow

All of the above statements describe Kohlbergs Stage 6

13. Rests Four-Component Model of Ethical Decision making raises a very important point in the discussion of Moral Motivation and Moral Character. What is this point?

Individuals always act in accordance with their ethical intention.

Individuals always act in accordance with their ethical beliefs

After concluding what course of action is best, decision makers will always take the correct moral action and follow through with ethical decision making. Individuals always behave in accordance with ethical intention

After concluding what course of action is best, decision makers must be focused on taking the moral action and follow through with ethical decision making. Individuals do not always behave in accordance with ethical intention

If Individuals have strong religious and/or moral beliefs, they will act in accordance with those beliefs when they encounter an ethical dilemma

14. Kidder stated that ethical issues can be disorderly and sometimes downright confusing. They can have unexpected consequences. Kidder suggests nine steps or checkpoints that can help bring order to otherwise confusing ethical issues. Which of the following statements describes part of Kidders checkpoints?

Recognize that there is a moral issue. Acknowledge that an issue deserves our attention and that moral questions exist.

An issue may pit two important positive values against each other, in which case a determination should be made whether they are in conflict and if they are in conflict, which value to choose. For example: truth telling vs. loyalty.

Apply ethical standards and perspectives. Consider which ethical principle is most relevant.

At some point we have to make a decision. After making the decision, revisit and reflect on the decision.

All of the above are important steps in Kidders nine steps or checkpoints.

15. If you were an executive at Ford at the time of the Pinto ethical dilemma and you disagreed with Fords actions but were unable to influence the decisions that were made, how would the Ethical Dissonance Model describe this person-organization fit?

High-High

High-Low

Low-High

Low-Low

None of the above

16. Ford based their decision in the Ford Pinto case on a risk-benefit analysis that showed a positive Return on Investment (ROI) that supported not fixing the Pinto. In your instructors opinion, was this a good business decision?

No, because it was an unethical decision and an unethical decision can never be a good business decision. Also the analysis did not consider other business factors such as reputation and long-term impact on sales in the conclusions of the analysis

No, whether it was ethical or not is not important. The only thing that is important is that the analysis did not fully consider all the costs of the decision. Had those costs been considered, another decision may have been made.

No, because the cost of fixing the Pintos problems was less than the cost of paying for deaths and injuries caused by the problems

Yes, this was a good business decision because the cost of fixing the Pintos problems estimated at $137 million is much greater than the benefit of saving $49.5 million that was estimated would be paid for injuries and deaths caused by the Pintos faulty design.

Yes, this was a good business decision because the Pinto was a highly popular car and sales resulted in net profits that produced a good ROI for Ford.

17.

In her book, The Seven Signs of Ethical Collapse, Marianne Jennings identifies seven common ethical signs of moral meltdowns in companies that have experienced ethical collapse: the common threads that make good people do really dumb things. Which of the following is not one of the common threads identified by Jennings?

Loyalty to the boss

Integrity of the individual

Weak board of directors

Pressure to maintain the numbers

Conflicts of interest overlooked or unaddressed

18. A lot of companies experience shortages in office supplies each year in September as the new school year begins. What does this likely indicate?

That employees have been authorized to use company supplies for their kids school supplies

That employees are using more office supplies as the company gets near its year end

That employees have committed financial statement fraud as the balance sheet reports assets that the company no longer has

That employees have committed occupational fraud by misappropriation of company resources

That employees will be caught and disciplined for using company supplies without permission

19. Financial statement fraud occurs because an employee typically a member of top management does what?

Causes a material misstatement or omission of information in the organizations financial statements

Causes any misstatement or omission, material or not, of information in the organizations financial statements

Causes a misstatement or omission of information in the organizations financial statements that directly benefits the employee through increased bonuses, salary, stock options, or price of stock already owned

Uses insider information to trade in company stock in a way that is beneficial to the employee and harmful to shareholders who do not have the same information

Misappropriates assets by stealing or misusing resources, such as charging personal expenses to the company and covering it up by not recording the misappropriated asset on the companys income statement

20. Which of the following best describes the definition of corporate governance?

There is no single, accepted definition of corporate governance

Corporate governance is not concerned with running the business of the company, but with giving overall direction to the enterprise

Corporate governance should be focused on overseeing and controlling the executive actions of management

Corporate governance deals with issues that result from the separation of ownership and control

All of the above describe corporate governance

21. What is meant by the term clawback in the Dodd-Frank Act?

A whistleblower has the right to fight or clawback financial losses from any retaliation that causes the whistleblower to have a financial loss as a result of their whistleblowing

Any company has an obligation to recover or clawback any incentive compensation paid to executives in the event of a financial restatement

Public companies have an increased obligation to recover or clawback incentive-based compensation paid to executive officers as a result of filing materially incorrect financial statements with the SEC

Public companies must recover or clawback any profits any employees make from stock option plans if the profits were a result of fraudulent reporting of financial statements

All of the above

22. The COSO 2013 Internal Control Integrated Framework establishes a framework that defines internal control as a process designed to provide reasonable assurance regarding the achievement of the following objectives: effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. COSO states that management should enact five components related to these objectives as part of the framework. The five components include all of the following except:

The Control Environment

Compliance with Section 404 of SOX

Risk Assessment

Monitoring

Information and Communication

23. Dodd-Frank provides for incentives for whistleblowers including monetary awards. Which of the following is a true statement regarding internal accountants eligibility for whistleblower awards?

Internal accountants are excluded from receiving whistleblower awards under all circumstances

Internal accountants are generally excluded from receiving whistleblower awards unless they have internal compliance or audit responsibilities

Internal accountants have the same rights to awards as any other whistleblower

Internal accountants are eligible to receive whistleblower awards under Dodd-Frank under certain circumstances that include any of the following: disclosure to the SEC is needed to prevent substantial injury to the financial interest of the entity or its investors, the whistleblower reasonably believes the entity is impeding investigation of the misconduct, or the whistleblower has first reported the violation internally and at least 120 days have passed with no action.

Internal accountants are eligible to receive whistleblower awards under Dodd-Frank under certain circumstances that include all of the following: disclosure to the SEC is needed to prevent substantial injury to the financial interest of the entity or its investors, the whistleblower reasonably believes the entity is impeding investigation of the misconduct, and the whistleblower has first reported the violation internally and at least 120 days have passed with no action.

24.

Which of the following is NOT an unethical earnings management technique?

Recording revenue when the product has been delivered and the customer is obligated to pay

Recording revenue when future services have been contracted for but not yet performed

Recording sales that lack economic substance

Including investment income or gains as part of operating revenue

Recording expenses as capital assets

25. "Cookie jar reserves" can best be described as:

Overstating reserves like allowances for bad debt or allowances for product warranties to be reversed in the future to smooth out net income over time

Setting funds aside, like saving money in a cookie jar, until the funds are needed in a later period

Holding on to resources including money, inventory, and accounts receivable until they are needed in a later period

Accelerating the recording of revenues into an earlier year than is warranted

Delaying the recording of expenses to a later year to boost income in the current year

26. When might a company want to artificially deflate earnings?

A company would never want to deflate earnings

When a company wants to create reserves in the current year to be used in a future year to smooth earnings

When the company is concerned that it might exceed analysts projections for the current year

When management knows that there is fraud that might be discovered if reported earnings are too high

When management is unsure of how the auditors will look at an exceptionally large increase in earnings for the year

27. What is the auditors responsibility for detecting fraud?

The purpose of an audit is to give an opinion on whether financial statements are presented fairly under GAAP, auditors are not responsible for detecting fraud

Auditors are responsible for detecting any fraud that occurs

Auditors are responsible for detecting fraud, whether it is material or immaterial

Auditors are responsible for detecting fraud if it is material, not if it is immaterial

Auditors are never responsible for detecting fraud

28. The AICPA Code of Professional Conduct requires:

Independence in all work performed by CPAs

Independence in all attest and tax engagements performed by CPAs

Independence in all attest engagements performed by CPAs

Independence in fact only

Independence for the CPA only, close family relationships to audit clients are not covered

29. Independence in appearance means the member

Should avoid situations where the members potential lack of independence can be observed by others

Should avoid circumstances that might cause an informed third party to reasonably conclude that the integrity, objectivity, or professional skepticism of a member has been compromised

Should avoid circumstances where the member is seen at a social function with an audit client

Should avoid situations where the member is in fact not independent

Should only be a problem for audit clients that are publicly held companies

30. If a CPA who is a member of the AICPA violates the AICPA Code of Professional Conduct, what disciplinary action may the AICPA take against the member?

Revoke the members authorization to conduct audits of SEC reporting companies

Revoke the members authorization to conduct audits of privately held companies

Revoke the individuals membership in the AICPA and revoke the members license to practice as a CPA

Revoke the individuals membership in the AICPA only, the member may still practice as a CPA

None of the above

31. What may result in a CPA losing her license to practice as a CPA?

Violating the AICPA Code of Professional Conduct

Violating her State Society of CPAs Code of Professional Conduct

Violating her State Board of Accountancys Code of Professional Conduct which may be identical to the AICPA Code of Professional Conduct

Violating her State Board of Accountancys Code of Professional Conduct only if the provisions in the State Boards Code are identical to the AICPAs Code of Professional Conduct

None of the above

32. In an audit situation, auditors may suggest the client book Adjusting Journal Entries (AJEs). If the client books the AJEs:

This is acceptable and should lead to an unmodified opinion from the auditors if there are no other issues that may affect the auditors opinion

This is an independence problem as the auditor should not be telling the client what accounting entries to make

The auditor should never make these type of suggestions as the financial statements are the responsibility of the client

The client should report to the board of directors any AJEs the auditor suggests and let the board determine if there is an independence problem

The audit committee of the board of directors should determine which AJEs are to be recorded

33. What three conditions are generally present when fraud occurs and are identified as the three legs of the fraud triangle?

Dishonesty, lack of integrity, and lack of ethics

Pressure, opportunity, rationalization

Pressure, dishonesty, greed

Greed, lack of ethics, and lack of integrity

Failure to follow the golden rule, failure to be ethical, failure to be honest

34. Sarbanes Oxley (SOX) legislation is enforceable against

Auditors of publicly held companies but not management

Auditors of publicly and privately held companies but not management

Auditors and management of all companies in the United States

Auditors and management of publicly held companies in the United States

None of the above

35. The Sarbanes-Oxley Act of 2002 (SOX) has

Demonstrated that stronger laws can stop fraud

Shown to be an effective deterrent in that there have been no significant frauds since SOX was enacted

Shown that while increased penalties may help deter fraud, legislation alone will not prevent fraud from occurring

Shown that the PCAOB has been effective in requiring better auditing practices

Been totally ineffective

36. Professional skepticism requires

An auditor to never believe what a client tells them

An auditor to be absolutely sure that all numbers in the audited financial statements are accurate

An auditor to be extremely skeptical in checking for errors or omissions in the financial statements

An auditor to trust but verify every account presented on the financial statements no matter how material the account is to financial statement presentation

An auditor to approach the audit with a questioning mind and a critical assessment of audit evidence

37. When an organization truly wants to foster an ethical culture, what is probably the most important element to have?

A strong whistleblower program

A strong internal audit department

A strong board of directors

A powerful CEO

An ethical tone at the top

38. The PCAOB was established

By SOX to set auditing standards for publicly held companies in the United States

By SOX to set auditing standards for all companies in the United States

By the AICPA to set auditing standards for publicly held companies in the United States

By the AICPA to set auditing standards for all companies in the United States

None of the above

39.

Equity Funding was a landmark fraud case that resulted in the SEC recommending and the AICPA Auditing Standards Board requiring:

Standards for auditing through rather than around computer accounting records

Auditors confirming accounts receivable and observing physical inventory counts

Standards to punish insider trading by Whistleblowers

Standards requiring professional skepticism

Standards requiring strong internal controls

40. As a result of McKesson & Robbins the SEC recommended to the AICPA that

Auditors should observe the physical taking of inventories

Auditors should directly confirm accounts receivable

Auditing standards should be distinguished from auditing procedures

The auditors certificate should state whether the audit was made in accordance with generally accepted auditing standards applicable in the circumstances

All of the above

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