Question 1 6 pts

(TCO 1) Trends in business generally are related to changes in accounting practices. For example, the globalization of business lead to the plan to harmonize GAAP for providers of capital in world markets. Which of the following best describes the implications and consequences for standard setting for the accounting profession?

SOX emphasized the need for professional accountants to tend to business to ensure the viability of Private CPA firms as profitable ventures.

Enron and WorldCom debacles lead to the creation of the Securities and Exchange Commission.

The influence of the International Accounting Standards Board (IASB) and the International Federation of Accountants (IFAC) will be as influential (or more so) than SOX on accounting practices.

Unfettered private enterprise seems to be able to manage itself in a way that leads to benefits for all stakeholders.

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Question 2 6 pts

(TCO 2) Arthur Andersen was Enron s auditor and performed many duties and functions for Enron. Which of the following was not one of the functions or duties performed by Arthur Andersen?

Auditor

Consultant on accounting and SPE transactions

Made decisions affecting internal control policies

Advisor or reviewer of financial disclosure matters

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Question 3 6 pts

(TCO 3) According to Trevino et al (2000), executives must first be moral or ethical people or else their followers will come to regard them as hypocrites when their true nature shows. The character traits associated with ethical leadership include all but which of the following:

Humility

Honesty

Integrity

Sincerity

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Question 4 6 pts

(TCO 4) A professional accountant is expected to exercise the values of honest objectivity and due care. Some professional codes of conduct require disassociation from misleading information. For example the accountant might have to leave his or her job for refusing to misrepresent receivables, but he or she might not discuss the reasons for leaving the former employer. When the professional code requires this silence, for the sake of confidentiality of the accountant, there is an ethical risk that

the professional accountant cannot find another job.

unsuspecting shareholders will be left to their fate.

the accountant's professional reputation can be improved.

trust of the public will be maintained.

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Question 5 6 pts

(TCO 4) The principles set forth by the AICPA code of professional conduct state that

professionals should exercise professional conduct in all business activities.

professionals should exercise professional and moral judgment in all their activities.

professionals should exercise due care and continually strive to improve quality of service.

B and C are correct. answer each question with abcd answer, recive thumbs up