WGU D550 Ethics for Accountants
OA Final Exam Questions with Answers & Explanations
1. Which ethical theory evaluates the morality of an action based on its consequences for the
greatest number of people?
A. Deontology
B. Utilitarianism
C. Virtue ethics
D. Justice-based ethics
Correct Answer: B
Explanation: Utilitarianism judges actions by their outcomes, aiming to maximize overall benefit or happiness
for the greatest number.
2. A deontological approach to ethics primarily focuses on:
A. The consequences of an action
B. Duties, rules, and obligations regardless of outcome
C. The character of the person acting
D. Fair distribution of resources
Correct Answer: B
Explanation: Deontology holds that certain duties and rules must be followed because they are inherently
right, independent of consequences.
3. Virtue ethics asks which of the following central questions?
A. What rule should I follow?
B. What would maximize overall welfare?
C. What would a person of good character do?
D. What does the law require?
Correct Answer: C
Explanation: Virtue ethics centers on character traits (honesty, integrity, courage) and asks what a virtuous
person would do in the situation.
4. The 'veil of ignorance' concept, used to test fairness of a decision, is most associated with
which ethical framework?
A. Utilitarianism
B. Egoism
C. Justice-based (Rawlsian) ethics
D. Virtue ethics
Correct Answer: C
Explanation: John Rawls' justice-as-fairness approach asks decision-makers to imagine they don't know
their own position in society, promoting impartial rules.
,5. An accountant who follows a rule such as 'always be honest with clients regardless of the
business consequences' is applying:
A. A utilitarian approach
B. A deontological approach
C. An egoistic approach
D. A relativist approach
Correct Answer: B
Explanation: Following a fixed duty (honesty) regardless of outcome is a hallmark of deontological ethics.
6. Ethical relativism holds that:
A. Moral standards are absolute and universal
B. Moral standards vary by culture or individual and there is no universal standard
C. Only laws determine morality
D. Ethics and law are always identical
Correct Answer: B
Explanation: Ethical relativism claims that what is 'right' depends on cultural, social, or personal context
rather than a universal standard.
7. Which of the following best describes 'ethical egoism'?
A. Acting to maximize the welfare of society
B. Acting in one's own self-interest as the guiding moral principle
C. Acting according to a set of universal duties
D. Acting according to community consensus
Correct Answer: B
Explanation: Ethical egoism holds that an action is moral if it maximizes the actor's own self-interest.
8. In accounting ethics, 'professional skepticism' most directly supports which broader ethical
goal?
A. Maximizing firm profit
B. Ensuring objectivity and diligence in evaluating evidence
C. Building client loyalty
D. Minimizing audit fees
Correct Answer: B
Explanation: Professional skepticism requires a questioning mind and critical assessment of evidence,
supporting objectivity and due care.
9. Which statement best distinguishes ethics from law?
A. Ethics and law always overlap completely
B. Law reflects the minimum standard of conduct enforced by government; ethics can require more
than the law demands
C. Ethics only applies to accountants, law applies to everyone
D. Law is optional, ethics is mandatory
Correct Answer: B
Explanation: Law sets a legally enforceable floor, but ethical behavior often requires accountants to exceed
the bare legal minimum.
10. The 'stakeholder theory' of business ethics suggests that a company's obligations extend
to:
A. Shareholders only
, B. Employees only
C. All parties affected by the company's actions (shareholders, employees, customers, community,
etc.)
D. Government regulators only
Correct Answer: C
Explanation: Stakeholder theory broadens accountability beyond shareholders to everyone with a legitimate
interest in the firm's conduct.
Section 2: AICPA Code of Professional Conduct
11. The AICPA Code of Professional Conduct applies its 'conceptual framework approach'
primarily to help members:
A. Avoid all client relationships
B. Identify, evaluate, and address threats to compliance with the rules
C. Calculate audit fees
D. Draft financial statements
Correct Answer: B
Explanation: The conceptual framework is a threats-and-safeguards approach used when no specific rule
directly addresses a situation.
12. Which of the following is one of the six principles underlying the AICPA Code of
Professional Conduct?
A. Profit maximization
B. The public interest
C. Client confidentiality above all else
D. Maximizing billable hours
Correct Answer: B
Explanation: The AICPA's principles include acting in a way that serves the public interest, not just the client
or the firm.
13. Under the AICPA Code, 'integrity' requires a member to:
A. Always agree with client management
B. Be honest and candid, subject to confidentiality obligations
C. Maximize firm revenue
D. Avoid disclosing any information to regulators
Correct Answer: B
Explanation: Integrity means being straightforward and honest, tempered only by legitimate confidentiality
constraints, not by convenience.
14. Which threat category arises when a CPA audits their own firm's prior work (e.g.,
bookkeeping they performed)?
A. Advocacy threat
B. Self-review threat
C. Familiarity threat
D. Undue influence threat
Correct Answer: B
Explanation: A self-review threat occurs when a member must evaluate results of their own prior judgment or
service.
OA Final Exam Questions with Answers & Explanations
1. Which ethical theory evaluates the morality of an action based on its consequences for the
greatest number of people?
A. Deontology
B. Utilitarianism
C. Virtue ethics
D. Justice-based ethics
Correct Answer: B
Explanation: Utilitarianism judges actions by their outcomes, aiming to maximize overall benefit or happiness
for the greatest number.
2. A deontological approach to ethics primarily focuses on:
A. The consequences of an action
B. Duties, rules, and obligations regardless of outcome
C. The character of the person acting
D. Fair distribution of resources
Correct Answer: B
Explanation: Deontology holds that certain duties and rules must be followed because they are inherently
right, independent of consequences.
3. Virtue ethics asks which of the following central questions?
A. What rule should I follow?
B. What would maximize overall welfare?
C. What would a person of good character do?
D. What does the law require?
Correct Answer: C
Explanation: Virtue ethics centers on character traits (honesty, integrity, courage) and asks what a virtuous
person would do in the situation.
4. The 'veil of ignorance' concept, used to test fairness of a decision, is most associated with
which ethical framework?
A. Utilitarianism
B. Egoism
C. Justice-based (Rawlsian) ethics
D. Virtue ethics
Correct Answer: C
Explanation: John Rawls' justice-as-fairness approach asks decision-makers to imagine they don't know
their own position in society, promoting impartial rules.
,5. An accountant who follows a rule such as 'always be honest with clients regardless of the
business consequences' is applying:
A. A utilitarian approach
B. A deontological approach
C. An egoistic approach
D. A relativist approach
Correct Answer: B
Explanation: Following a fixed duty (honesty) regardless of outcome is a hallmark of deontological ethics.
6. Ethical relativism holds that:
A. Moral standards are absolute and universal
B. Moral standards vary by culture or individual and there is no universal standard
C. Only laws determine morality
D. Ethics and law are always identical
Correct Answer: B
Explanation: Ethical relativism claims that what is 'right' depends on cultural, social, or personal context
rather than a universal standard.
7. Which of the following best describes 'ethical egoism'?
A. Acting to maximize the welfare of society
B. Acting in one's own self-interest as the guiding moral principle
C. Acting according to a set of universal duties
D. Acting according to community consensus
Correct Answer: B
Explanation: Ethical egoism holds that an action is moral if it maximizes the actor's own self-interest.
8. In accounting ethics, 'professional skepticism' most directly supports which broader ethical
goal?
A. Maximizing firm profit
B. Ensuring objectivity and diligence in evaluating evidence
C. Building client loyalty
D. Minimizing audit fees
Correct Answer: B
Explanation: Professional skepticism requires a questioning mind and critical assessment of evidence,
supporting objectivity and due care.
9. Which statement best distinguishes ethics from law?
A. Ethics and law always overlap completely
B. Law reflects the minimum standard of conduct enforced by government; ethics can require more
than the law demands
C. Ethics only applies to accountants, law applies to everyone
D. Law is optional, ethics is mandatory
Correct Answer: B
Explanation: Law sets a legally enforceable floor, but ethical behavior often requires accountants to exceed
the bare legal minimum.
10. The 'stakeholder theory' of business ethics suggests that a company's obligations extend
to:
A. Shareholders only
, B. Employees only
C. All parties affected by the company's actions (shareholders, employees, customers, community,
etc.)
D. Government regulators only
Correct Answer: C
Explanation: Stakeholder theory broadens accountability beyond shareholders to everyone with a legitimate
interest in the firm's conduct.
Section 2: AICPA Code of Professional Conduct
11. The AICPA Code of Professional Conduct applies its 'conceptual framework approach'
primarily to help members:
A. Avoid all client relationships
B. Identify, evaluate, and address threats to compliance with the rules
C. Calculate audit fees
D. Draft financial statements
Correct Answer: B
Explanation: The conceptual framework is a threats-and-safeguards approach used when no specific rule
directly addresses a situation.
12. Which of the following is one of the six principles underlying the AICPA Code of
Professional Conduct?
A. Profit maximization
B. The public interest
C. Client confidentiality above all else
D. Maximizing billable hours
Correct Answer: B
Explanation: The AICPA's principles include acting in a way that serves the public interest, not just the client
or the firm.
13. Under the AICPA Code, 'integrity' requires a member to:
A. Always agree with client management
B. Be honest and candid, subject to confidentiality obligations
C. Maximize firm revenue
D. Avoid disclosing any information to regulators
Correct Answer: B
Explanation: Integrity means being straightforward and honest, tempered only by legitimate confidentiality
constraints, not by convenience.
14. Which threat category arises when a CPA audits their own firm's prior work (e.g.,
bookkeeping they performed)?
A. Advocacy threat
B. Self-review threat
C. Familiarity threat
D. Undue influence threat
Correct Answer: B
Explanation: A self-review threat occurs when a member must evaluate results of their own prior judgment or
service.
