WGU D550 TASK 1 BARBARA'S ETHICAL DILEMMA IN ACCOUNTING
AUDITS QUESTIONS AND ANSWERS
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? - CORRECT ANSWER✅✅egoism
Ethical relativism can best be described as - CORRECT 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 - CORRECT
ANSWER✅✅the importance of integrity in decision making.
Objectivity requires that a CPA should - CORRECT ANSWER✅✅maintain a mental attitude of intellectual
honesty and impartiality.
The Independence Principle in the AICPA Code applies to - CORRECT ANSWER✅✅all CPAs who render
attestation services.
A CPA would violate the Due Care Principle if he/she - CORRECT 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 - CORRECT
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 - CORRECT ANSWER✅✅integrity.
The most important duty of public accounting is to the - CORRECT ANSWER✅✅investing public.
, Bob is being pressured by his superior to go along with improper accounting and told he is expected to
be a team player. Which of the following statements best characterizes those expectations? - CORRECT
ANSWER✅✅loyalty
The cognitive development approach refers to - CORRECT ANSWER✅✅the thought process followed in
one's moral development.
Kohlberg's model can best be described as - CORRECT ANSWER✅✅the various phases in one's moral
development and related levels of moral reasoning.
Which concept is thought of in terms of equal opportunity that fits a person's circumstances and
abilities? - CORRECT ANSWER✅✅equity
Thorne's "Integrated Model of Ethical Decision Making" can best be described as - CORRECT
ANSWER✅✅a model of the role of moral development and virtue in decision making.
In organizations, the ethical environment that is created in the workplace by the organization's
leadership is commonly called the - CORRECT ANSWER✅✅tone at the top.
Which of the following connect the integrated ethical decision-making process with Rest's framework? -
CORRECT ANSWER✅✅reflect on the moral intensity and virtues that enable action and ethical intent
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 - CORRECT
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? - CORRECT ANSWER✅✅hindsight bias
AUDITS QUESTIONS AND ANSWERS
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? - CORRECT ANSWER✅✅egoism
Ethical relativism can best be described as - CORRECT 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 - CORRECT
ANSWER✅✅the importance of integrity in decision making.
Objectivity requires that a CPA should - CORRECT ANSWER✅✅maintain a mental attitude of intellectual
honesty and impartiality.
The Independence Principle in the AICPA Code applies to - CORRECT ANSWER✅✅all CPAs who render
attestation services.
A CPA would violate the Due Care Principle if he/she - CORRECT 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 - CORRECT
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 - CORRECT ANSWER✅✅integrity.
The most important duty of public accounting is to the - CORRECT ANSWER✅✅investing public.
, Bob is being pressured by his superior to go along with improper accounting and told he is expected to
be a team player. Which of the following statements best characterizes those expectations? - CORRECT
ANSWER✅✅loyalty
The cognitive development approach refers to - CORRECT ANSWER✅✅the thought process followed in
one's moral development.
Kohlberg's model can best be described as - CORRECT ANSWER✅✅the various phases in one's moral
development and related levels of moral reasoning.
Which concept is thought of in terms of equal opportunity that fits a person's circumstances and
abilities? - CORRECT ANSWER✅✅equity
Thorne's "Integrated Model of Ethical Decision Making" can best be described as - CORRECT
ANSWER✅✅a model of the role of moral development and virtue in decision making.
In organizations, the ethical environment that is created in the workplace by the organization's
leadership is commonly called the - CORRECT ANSWER✅✅tone at the top.
Which of the following connect the integrated ethical decision-making process with Rest's framework? -
CORRECT ANSWER✅✅reflect on the moral intensity and virtues that enable action and ethical intent
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 - CORRECT
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? - CORRECT ANSWER✅✅hindsight bias
