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ACG 445 EXAM 1 Questions with
Detailed Verified Answers
Question:professional judgment is influenced by:
a) personal behavioral traits
b) personal code of ethics
c) organizational values
d) organizational dissonance
Ans: a) personal behavioral traits
Question: personal values link to:
a) ethical motivation and action
b) ethical sensitivity
c) ethical judgment and motivation
d) ethical sensitivity and judgment
Ans: d) ethical sensitivity and judgment
Question: common judgement traps include:
a) reacting to pressures, a rush to solve problems, and systems 1 thinking
b) systems 1 thinking, cognitive dissonance, a rush to solve problems
c) group think, judgment triggers, and a rush to solve problems
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d) group think, judgment triggers, and reacting to pressures
Ans: c) group think, judgment triggers, and a rush to solve problems
Question: which of the following is NOT a common judgment tendency
a) confirmation tendency
b) over confidence tendency
c) availability tendency
d) decision- making tendency
Ans: decision making tendency
Question: professional skepticism can best be defined as having:
a) an inquiring mind and suspension of belief
b) careful observation and virtue-based decision making
c) an inquiring mind and deliberate decision making
d) deliberate decision- making and suspension of belief
Ans: a) an inquiring mind and suspension of belief
Question: professional skepticism links to professional judgment through the
ethical standards of:
a) objectivity, intelligence, and reflective thought
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b) honesty, integrity, and due care
c) independent thought, objectivity, and due care
d) independent thought, objectivity, and intelligence
Ans: c) independent thought, objectivity, and due care
Question: Jacob just joined the firm of Gordon & Towns LLC. Prior to
beginning his first group audit assignment, Jacob asks to meet with his
mentor, Isaac. He asks Isaac how making judgments in an audit team setting
differs from running an audit oneself. What is the best advice for Isaac to give
to Jacob?:
a) good judgment principles apply only in group settings since other are
involved
b) they are not the same
c) groups are not prone to judgment traps and biases
d) groups are prone to making quick decisions in order to avoid conflicts
Ans: d) groups are prone to making quick decisions in order to avoid conflict
Question: The global code of ethics for the accounting profession is called:
a) handbook of the code of ethics for professional accountants
b) IMA ethical and professional standards
c) public interest framework for the accountancy profession
d) AICPA code of professional conduct
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Ans: a) handbook of the code of ethics for professional accountants
Question: the house subcommittee on oversight and investigations made its
recommendations after looking into failures at each of the following
companies except:
a) ESM government securities
b) penn square bank
c) enron
d) continental Illinois National Bank and Trust
Ans: c) enron
Question: in its investigation of zzzz best, the house subcommittee on
oversight and investigations looked into:
a) how the company was able to create 80% or more fictitious revenue
b) why the board of directors failed to uncover the fraud at zzzz best
c) how the company was able to create cookie jar reserves
d) all of the above
Ans: a) how the company was able to create 80% or more fictitious revenue
Question: the most significant change in the revised aicpa code of
professional conduct is
a) eliminating code coverage for members in business
b) a conceptual framework approach for evaluating ethics violations
ACG 445 EXAM 1 Questions with
Detailed Verified Answers
Question:professional judgment is influenced by:
a) personal behavioral traits
b) personal code of ethics
c) organizational values
d) organizational dissonance
Ans: a) personal behavioral traits
Question: personal values link to:
a) ethical motivation and action
b) ethical sensitivity
c) ethical judgment and motivation
d) ethical sensitivity and judgment
Ans: d) ethical sensitivity and judgment
Question: common judgement traps include:
a) reacting to pressures, a rush to solve problems, and systems 1 thinking
b) systems 1 thinking, cognitive dissonance, a rush to solve problems
c) group think, judgment triggers, and a rush to solve problems
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d) group think, judgment triggers, and reacting to pressures
Ans: c) group think, judgment triggers, and a rush to solve problems
Question: which of the following is NOT a common judgment tendency
a) confirmation tendency
b) over confidence tendency
c) availability tendency
d) decision- making tendency
Ans: decision making tendency
Question: professional skepticism can best be defined as having:
a) an inquiring mind and suspension of belief
b) careful observation and virtue-based decision making
c) an inquiring mind and deliberate decision making
d) deliberate decision- making and suspension of belief
Ans: a) an inquiring mind and suspension of belief
Question: professional skepticism links to professional judgment through the
ethical standards of:
a) objectivity, intelligence, and reflective thought
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b) honesty, integrity, and due care
c) independent thought, objectivity, and due care
d) independent thought, objectivity, and intelligence
Ans: c) independent thought, objectivity, and due care
Question: Jacob just joined the firm of Gordon & Towns LLC. Prior to
beginning his first group audit assignment, Jacob asks to meet with his
mentor, Isaac. He asks Isaac how making judgments in an audit team setting
differs from running an audit oneself. What is the best advice for Isaac to give
to Jacob?:
a) good judgment principles apply only in group settings since other are
involved
b) they are not the same
c) groups are not prone to judgment traps and biases
d) groups are prone to making quick decisions in order to avoid conflicts
Ans: d) groups are prone to making quick decisions in order to avoid conflict
Question: The global code of ethics for the accounting profession is called:
a) handbook of the code of ethics for professional accountants
b) IMA ethical and professional standards
c) public interest framework for the accountancy profession
d) AICPA code of professional conduct
, Page | 4
Ans: a) handbook of the code of ethics for professional accountants
Question: the house subcommittee on oversight and investigations made its
recommendations after looking into failures at each of the following
companies except:
a) ESM government securities
b) penn square bank
c) enron
d) continental Illinois National Bank and Trust
Ans: c) enron
Question: in its investigation of zzzz best, the house subcommittee on
oversight and investigations looked into:
a) how the company was able to create 80% or more fictitious revenue
b) why the board of directors failed to uncover the fraud at zzzz best
c) how the company was able to create cookie jar reserves
d) all of the above
Ans: a) how the company was able to create 80% or more fictitious revenue
Question: the most significant change in the revised aicpa code of
professional conduct is
a) eliminating code coverage for members in business
b) a conceptual framework approach for evaluating ethics violations
