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WGU D550 ETHICS FOR ACCOUNTANTS
OA FINAL ACTUAL EXAM PREP 2026
ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A
GRADED WITH EXPERT FEEDBACK
|NEW AND REVISED
Wanda is faced with an ethical dilemma. She knows her supervisor, the
CFO, wants to accelerate the recoding of revenue to an earlier period to
"make the numbers," but Wanda is convinced this would violate GAAP.
If Wanda reasons at stage 4 of Kohlberg's model, she is most likely to -
ANSWER- refuse to record the transaction as desired by the CFO.
Which bias involves a tendency to believe past outcomes were expected
or known before they occurred? - ANSWER- hindsight bias
Which bias involves a belief that theories about the world also suggest
that we tend to blame individuals for events, rather than their work
environment, policies and procedures, or incentive programs? -
ANSWER- attribution bias
Assume your values conflict with what you are being asked to do. Under
the Giving Voice to Values methodology, which of the following
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statements reflects the thought process you might have in developing a
game plan to voice your values? - ANSWER- Reflect on the objections
that might be raised to your intended expressed views.
Fraud can be defined as - ANSWER- a deliberate misrepresentation to
gain an advantage over another party.
The difference between occupational and financial statement fraud is -
ANSWER- occupational fraud is generally committed by employees.
The seven signs of a pending ethical collapse include all but -
ANSWER- strong board of directors.
A troubling result of the 2021 Global Business Ethics Survey is -
ANSWER- there is a significant increase in retaliation.
The relationship between the shareholders, directors, and management
of a company, as defined by the corporate charter, bylaws, formal
policy, and rule of law is known as - ANSWER- corporate governance.
The level of care expected of a reasonable person under similar
circumstances in meeting one's fiduciary duty is called - ANSWER-
duty of care.
The Clawback rule allows - ANSWER- recovering compensation from
CEOs who engage in financial statement misconduct.
,3|Page
What is the main fiduciary duty of the board of directors? - ANSWER-
safeguard the interests of the corporation and its shareholders
In the Pinto case, Ford relied on which approaches to ethical reasoning
to decide on a course of action with respect to the faulty gas tank
placement - ANSWER- ethical legalism and utilitarianism.
The framework of COSO's Enterprise Risk Management can best be
characterized as - ANSWER- incorporate enhanced corporate
governance into internal control principles.
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? - ANSWER- egoism
Ethical relativism can best be described as - ANSWER- a point of view
that morality is relative to the norms of one's culture.
The Public Interest Principle in the AICPA Code of Professional
Conduct recognizes - ANSWER- the importance of integrity in decision
making.
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Objectivity requires that a CPA should - ANSWER- maintain a mental
attitude of intellectual honesty and impartiality.
The Independence Principle in the AICPA Code applies to - ANSWER-
all CPAs who render attestation services.
A CPA would violate the Due Care Principle if he/she - ANSWER-
undertook a professional engagement without having the requisite
background, knowledge, and experience.
Under the IMA's standards of ethical practice, an accounting
professional can consider informing authorities or individuals not
employed by the organization when an ethical dilemma occurs about an
accounting or financial reporting matter that remains unresolved if
he/she - ANSWER- believes there is a clear violation of the law.
Kelly is the controller of a small company. One day the CFO comes in
and tells her to lower the estimate of uncollectible accounts receivable.
Kelly insists her numbers are correct as is. The CFO tells her it will
mean her job at the company if she doesn't go along with the smaller
estimate. The primary virtue that would enable Kelly to resist the
pressure to manipulate the number is - ANSWER- integrity.
The most important duty of public accounting is to the - ANSWER-
investing public.
WGU D550 ETHICS FOR ACCOUNTANTS
OA FINAL ACTUAL EXAM PREP 2026
ALL QUESTIONS AND CORRECT
DETAILED ANSWERS ALREADY A
GRADED WITH EXPERT FEEDBACK
|NEW AND REVISED
Wanda is faced with an ethical dilemma. She knows her supervisor, the
CFO, wants to accelerate the recoding of revenue to an earlier period to
"make the numbers," but Wanda is convinced this would violate GAAP.
If Wanda reasons at stage 4 of Kohlberg's model, she is most likely to -
ANSWER- refuse to record the transaction as desired by the CFO.
Which bias involves a tendency to believe past outcomes were expected
or known before they occurred? - ANSWER- hindsight bias
Which bias involves a belief that theories about the world also suggest
that we tend to blame individuals for events, rather than their work
environment, policies and procedures, or incentive programs? -
ANSWER- attribution bias
Assume your values conflict with what you are being asked to do. Under
the Giving Voice to Values methodology, which of the following
,2|Page
statements reflects the thought process you might have in developing a
game plan to voice your values? - ANSWER- Reflect on the objections
that might be raised to your intended expressed views.
Fraud can be defined as - ANSWER- a deliberate misrepresentation to
gain an advantage over another party.
The difference between occupational and financial statement fraud is -
ANSWER- occupational fraud is generally committed by employees.
The seven signs of a pending ethical collapse include all but -
ANSWER- strong board of directors.
A troubling result of the 2021 Global Business Ethics Survey is -
ANSWER- there is a significant increase in retaliation.
The relationship between the shareholders, directors, and management
of a company, as defined by the corporate charter, bylaws, formal
policy, and rule of law is known as - ANSWER- corporate governance.
The level of care expected of a reasonable person under similar
circumstances in meeting one's fiduciary duty is called - ANSWER-
duty of care.
The Clawback rule allows - ANSWER- recovering compensation from
CEOs who engage in financial statement misconduct.
,3|Page
What is the main fiduciary duty of the board of directors? - ANSWER-
safeguard the interests of the corporation and its shareholders
In the Pinto case, Ford relied on which approaches to ethical reasoning
to decide on a course of action with respect to the faulty gas tank
placement - ANSWER- ethical legalism and utilitarianism.
The framework of COSO's Enterprise Risk Management can best be
characterized as - ANSWER- incorporate enhanced corporate
governance into internal control principles.
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? - ANSWER- egoism
Ethical relativism can best be described as - ANSWER- a point of view
that morality is relative to the norms of one's culture.
The Public Interest Principle in the AICPA Code of Professional
Conduct recognizes - ANSWER- the importance of integrity in decision
making.
, 4|Page
Objectivity requires that a CPA should - ANSWER- maintain a mental
attitude of intellectual honesty and impartiality.
The Independence Principle in the AICPA Code applies to - ANSWER-
all CPAs who render attestation services.
A CPA would violate the Due Care Principle if he/she - ANSWER-
undertook a professional engagement without having the requisite
background, knowledge, and experience.
Under the IMA's standards of ethical practice, an accounting
professional can consider informing authorities or individuals not
employed by the organization when an ethical dilemma occurs about an
accounting or financial reporting matter that remains unresolved if
he/she - ANSWER- believes there is a clear violation of the law.
Kelly is the controller of a small company. One day the CFO comes in
and tells her to lower the estimate of uncollectible accounts receivable.
Kelly insists her numbers are correct as is. The CFO tells her it will
mean her job at the company if she doesn't go along with the smaller
estimate. The primary virtue that would enable Kelly to resist the
pressure to manipulate the number is - ANSWER- integrity.
The most important duty of public accounting is to the - ANSWER-
investing public.
