, Chapter 01
Ethical Reasoning: Implications for Accounting
Multiple Choice Questions
1. What is the common characteristic of Aristotle's virtues and ethical standards for
CPAs?
A. Truthfulne
ss
B. Integri
ty
C. Loyalt
y
D. Due
care
2. Jane finds a material misstatement while auditing a client's accounts receivables. Her
senior tells her to ignore the misstatement so that the client does not get upset. Jane
wants to be viewed as a team player in order to advance in the firm so Jane follows
her senior's instructions and ignores the misstatement. Which ethical theory did Jane
use to make her decision?
A. Egois
m
B. Justic
e
C. Virtue
ethics
D. Utilitarianis
m
3. Which of the following situations would be considered ethical?
A. The cashier at Wal-Mart gives you $5 more than you were supposed to receive and
you don't do anything about it
B. You accidentally back into a car at Wal-Mart and leave your information for
them to call
C. Receiving fake $20 bills and using them in a store while knowing
they are fake
D. Finding a phone in a restaurant and
keeping it
1-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,4. Which of the following characteristics does NOT describe the importance of integrity
in decision making?
A. Acting out of moral
principle
B. Being loyal to one's
superior
C. Having the courage to do the right
thing
D. Not subordinating professional judgment to
others
5. Which of the following characteristics does NOT describe the behavior of Cynthia
Cooper in the WorldCom fraud?
A. Persistenc
e
B. Competen
ce
C. Integri
ty
D. Conformi
ty
6. The ancient Greeks thought of the virtues as characteristics of behavior that:
A. Could lead to a good
life
B. Make up the "six pillars of
character"
C. Support the rights
theory
D. Rationalize unethical
actions
7. Which of the following elements does NOT make up an integral part of what is meant
by "ethics"?
A. Accepted standards of
behavior
B. Knowing the difference between right and
wrong
C. Always following the
law
D. The moral point of
view
1-2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 8. Ethical relativism can best be described as a:
A. Point of view that morality is relative to the norms of
one's culture.
B. Concept that holds that integrity should be maintained in the face of
pressure by others.
C. An ethical reasoning method that holds one should always act out of
self-interest.
D. An ethical reasoning method that holds one should always consider the effect of
one's actions on others.
9. Which of the following is NOT a pillar of character according to the Josephson
Institute?
A. Carin
g
B. Citizenshi
p
C. Respec
t
D. Judgment
al
10. Which of the following is NOT an element of trustworthiness according to the Six
Pillars of Character?
A. Reliabili
ty
B. Loyalt
y
C. Fairnes
s
D. Honest
y
11. An accountant who blows the whistle on financial wrongdoing by his/her employer by
going outside the entity violates:
A. The due care
principle
B. Confidential
ity
C. One's reliability
obligation
D. Public interest
obligation
1-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Ethical Reasoning: Implications for Accounting
Multiple Choice Questions
1. What is the common characteristic of Aristotle's virtues and ethical standards for
CPAs?
A. Truthfulne
ss
B. Integri
ty
C. Loyalt
y
D. Due
care
2. Jane finds a material misstatement while auditing a client's accounts receivables. Her
senior tells her to ignore the misstatement so that the client does not get upset. Jane
wants to be viewed as a team player in order to advance in the firm so Jane follows
her senior's instructions and ignores the misstatement. Which ethical theory did Jane
use to make her decision?
A. Egois
m
B. Justic
e
C. Virtue
ethics
D. Utilitarianis
m
3. Which of the following situations would be considered ethical?
A. The cashier at Wal-Mart gives you $5 more than you were supposed to receive and
you don't do anything about it
B. You accidentally back into a car at Wal-Mart and leave your information for
them to call
C. Receiving fake $20 bills and using them in a store while knowing
they are fake
D. Finding a phone in a restaurant and
keeping it
1-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
,4. Which of the following characteristics does NOT describe the importance of integrity
in decision making?
A. Acting out of moral
principle
B. Being loyal to one's
superior
C. Having the courage to do the right
thing
D. Not subordinating professional judgment to
others
5. Which of the following characteristics does NOT describe the behavior of Cynthia
Cooper in the WorldCom fraud?
A. Persistenc
e
B. Competen
ce
C. Integri
ty
D. Conformi
ty
6. The ancient Greeks thought of the virtues as characteristics of behavior that:
A. Could lead to a good
life
B. Make up the "six pillars of
character"
C. Support the rights
theory
D. Rationalize unethical
actions
7. Which of the following elements does NOT make up an integral part of what is meant
by "ethics"?
A. Accepted standards of
behavior
B. Knowing the difference between right and
wrong
C. Always following the
law
D. The moral point of
view
1-2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
, 8. Ethical relativism can best be described as a:
A. Point of view that morality is relative to the norms of
one's culture.
B. Concept that holds that integrity should be maintained in the face of
pressure by others.
C. An ethical reasoning method that holds one should always act out of
self-interest.
D. An ethical reasoning method that holds one should always consider the effect of
one's actions on others.
9. Which of the following is NOT a pillar of character according to the Josephson
Institute?
A. Carin
g
B. Citizenshi
p
C. Respec
t
D. Judgment
al
10. Which of the following is NOT an element of trustworthiness according to the Six
Pillars of Character?
A. Reliabili
ty
B. Loyalt
y
C. Fairnes
s
D. Honest
y
11. An accountant who blows the whistle on financial wrongdoing by his/her employer by
going outside the entity violates:
A. The due care
principle
B. Confidential
ity
C. One's reliability
obligation
D. Public interest
obligation
1-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
