Chapter 9 Practice Questions
Rina Dhillon
Practice Questions
- What ethical principle relates to accountants having to discharge their duties in a straightforward, honest way?
a. Integrity b. Objectivity c. Professional behaviour d. Professional competence and due care - What ethical principle relates to accountants avoiding bias, conflict of interest or undue influence?
a. Integrity b. Objectivity c. Professional behaviour d. Professional competence and due care - What ethical principle relates to accountants maintaining their level of knowledge base through training and education?
a. Integrity b. Objectivity c. Professional behaviour d. Professional competence and due care - What ethical principle relates to accountants generally acting in a manner that upholds the reputation of the accounting profession?
a. Integrity b. Objectivity c. Professional behaviour d. Professional competence and due care - What ethical principle relates to accountants having to maintain the secrets of an organisation, while also acting in the public interest should the need arise?
a. Integrity b. Confidentiality c. Objectivity d. Professional competence and due care - What ethical threat relates to accountants placing their personal gain over that of the organisation or others?
a. Self-review b. Self-interest c. Advocacy d. Familiarity - What ethical threat relates to accountants not evaluating work in which they have played a part in generating?
a. Self-review b. Self-interest c. Advocacy d. Familiarity - What ethical threat relates to accountants promoting an employer’s position to the point that their objectivity is compromised?
a. Self-review b. Self-interest c. Advocacy d. Familiarity - What ethical threat relates to an accountant who acts in a way that benefits another entity that is known to, and personally related to, the accountant in a way that impairs his or her objectivity?
a. Self-review b. Self-interest c. Advocacy d. Familiarity - What ethical threat relates to accountants forcing other individuals in a corporation to accomplish a transaction against their will in a manner that does not benefit the corporation?
a. Integrity b. Self-review c. Intimidation d. Professional competence and due care - If an employee provides a supplier with a contract in order to receive tickets to sports games from the supplier, without thought for the actual quality of the contract or price offered by the supplier, what ethical threat is most likely relevant?
a. Self-interest b. Self-review c. Objectivity d. Familiarity - Which of the following is most likely a safeguard to counter ethical threats?
a. Paying employees higher salaries b. Ensuring education and training on ethical themes relating to the organisation c. Giving employees more breaks at work. d. Both b. and c. - Work policies around the refusal of gifts from external stakeholders most likely affect the ethical behaviour of which stakeholder category?
a. Work environment b. Profession/legislation c. Suppliers d. Customers - Which of the following is not a safeguard to counter ethical threats from a work environment perspective?
a. Recruitment procedures b. Strong governmental standards on corporate governance c. Leadership setting an example for others to follow d. Appropriate disciplinary processes - Which of the following practices might make ethical behaviour harder to manifest?
a. Loose controls in an organisation b. Reduction in monitoring activities c. Sound recruitment and hiring policies d. A focus on high profitability and cost control - What is an ethical conceptual framework?
a. A framework that helps members resolve accounting ethical problems b. A method that provides answers to all ethical problems in firms c. A method that ensures employees behave ethically, moving forward d. Both a. and c. - In the ethical conceptual framework, what do relevant facts refer to?
a. What we know of the matters concerning the problem at hand b. Fundamental principles relating to the matter in question c. Understanding what went wrong and how we mitigate the likelihood of its occurrence d. Other actions that can be mobilised so that problem does not happen again - In the ethical conceptual framework, what do established internal procedures refer to?
a. What we know of the matters concerning the problem at hand b. Fundamental principles relating to the matter in question c. Understanding what went wrong and how we mitigate the likelihood of its occurrence d. Other actions that can be mobilised so that problem does not happen again - In the ethical conceptual framework, what do alternative courses of action refer to?
a. What we know of the matters concerning the problem at hand b. Fundamental principles relating to the matter in question c. Understanding what went wrong and how we mitigate the likelihood of its occurrence d. Different actions that can be mobilised so that problem does not happen again - Which of the following statements is not true regarding the ethical conceptual framework?
a. It can help businesses resolve ethical problems. b. It helps businesses think of establishing better internal procedures. c. It helps us understand the relevant facts relating to ethical matters at hand. d. It assures that ethical problems will be tackled better than before.
Solutions:
For Q1-10: Refer to the Code of Ethics or Sections 9.3 and 9.4 of the textbook for the answers.
- a
- b
- d
- c
- b
- b
- a
- c
- d
- c
- a – given the employees stands to benefit from a sports game ticket, this represents a self-interest threat.
- b – a and c are not safeguards as paying employees a higher salary and giving them more breaks will not reduce the likelihood of the employee behaving unethically.
- c – a and b are categories of safeguards, customers usually do not provide gifts to benefit from the business, suppliers which is the answer as it is common for suppliers to provide gifts to employees so as to gain business.
- b – b represents a safeguard created by regulation, rather than work environment
- c – a,b and d are not safeguards
- a
- a
- c
- d
- d
For Q16-17: Refer to the ethical conceptual framework in Section 9.5 of the textbook for the answers