WGU D550 ETHICS FOR ACCOUNTANTS
COMPREHENSIVE EXAM SCRIPT WITH
SOLVED QUESTIONS
◉ - directors must be independent and disinterested as to the
matter acted upon
- director must act with due care and in good faith
- the burden of proof is on the party challenging the board's
decision, to establish facts rebutting the presumption in favor of
upholding the decision
Answer: To obtain the business judgement rule's protection:
◉ Chancery Court
Answer: the preeminent forum for the resolution of commercial
business litigation matters including the duties of officers and
directors
◉ to be an equity court - to provide relief suited to the
circumstances when no adequate remedy if available at law
Answer: What is the foundational purpose of the chancery court?
◉ "Accountability aligns with how closely workplace decisions
align with a firm's strategic direction and it compliance with
ethical and legal consideration. Oversight provides a system of
checks and balances that limit employees and managers
,opportunities to deviate from from policies and strategies aimed
at preventing unethical and illegal activities. Control is the process
of auditing a improving organizational decisions and actions"
Answer: What was the characterization of corporate governance
provided by Ferell et al?
◉ - maximize shareholder wealth
- represnt all stakeholders
- stewardship function - fiduciary duty of managers
Answer: The role of corporate governance systems is to:
◉ to appoint nonexecutive (members of the board who are not
apart of the executive team) directors to the audit committee
Answer: What is an example of corporate governance oversight
and regulation?
◉ - independent directors must comprise a majority of the board
- company must have a minimum three-member audit committee
composed of entirley independent auditors
- the audit committee must meet the requirements enumerated in
Sec 301 of SOX and the Securities Exchange Acts Rule 10A-3(b)(1)
- SEC regulation S-K required disclosure in annual reports
whether or not the audit committee includes at least one
"financial expert"
Answer: Public companies in the US that list their equity
securities on the New York Stock Exchange (NYSE) or the Nasdaq
,Stock Market are required to have in place a board of directors
with:
◉ Sec 301 of SOX
Answer: prohibits a director from accepting any direct or indirect
consulting, advisory, or other compensatory fee from the listed
company other than compensation for director service and not
being affiliated with the company or its subsidiaries
◉ - to meet at least annually with the independent auditor and
review the audit report describing independent auditors internal
quality control procedures
- to discuss all relationships between the independent auditor and
the company and to enable assessment of the auditors
independence
- to discuss earnings, press release, and financial information and
earnings guidance given to analysist and rating agencies
- to discuss policies with respect to risk management and risk
assessment
- to meet separately, from time to time, with management, with
internal auditors, and with independent auditors
- to reveiw with the independent auditor any audit problems or
difficulties and management's response to such issues
- to report regularly to the board of directors
- to evaluate the work of the audit committee annually
Answer: What are the key audit committee responsibilities?
, ◉ Corporate Social Repsonsibility
Answer: refers to the ethical expectations that society has for
business, ethical repsonsibilities are those things that we ought to,
or should do, even if we prefer not to
◉ sexual harassment, other forms of discrimination, and
workplace safety
Answer: Corporations have an ethical responsibility to prevent
harm such as:
◉ sustainability and the triple bottom line
Answer: What are the forerunners of conscious capitalism?
◉ Sustainability
Answer: describes the ability to maintain various systems and
processes - environmentally, socially, and economically - over time
◉ Triple Bottom Line
Answer: the three aspects of sustainability, the three P's (people,
planet, and profit)
◉ economic, ecological, social
Answer: What three broad areas does the triple bottom line
describe the scope of reporting in?
COMPREHENSIVE EXAM SCRIPT WITH
SOLVED QUESTIONS
◉ - directors must be independent and disinterested as to the
matter acted upon
- director must act with due care and in good faith
- the burden of proof is on the party challenging the board's
decision, to establish facts rebutting the presumption in favor of
upholding the decision
Answer: To obtain the business judgement rule's protection:
◉ Chancery Court
Answer: the preeminent forum for the resolution of commercial
business litigation matters including the duties of officers and
directors
◉ to be an equity court - to provide relief suited to the
circumstances when no adequate remedy if available at law
Answer: What is the foundational purpose of the chancery court?
◉ "Accountability aligns with how closely workplace decisions
align with a firm's strategic direction and it compliance with
ethical and legal consideration. Oversight provides a system of
checks and balances that limit employees and managers
,opportunities to deviate from from policies and strategies aimed
at preventing unethical and illegal activities. Control is the process
of auditing a improving organizational decisions and actions"
Answer: What was the characterization of corporate governance
provided by Ferell et al?
◉ - maximize shareholder wealth
- represnt all stakeholders
- stewardship function - fiduciary duty of managers
Answer: The role of corporate governance systems is to:
◉ to appoint nonexecutive (members of the board who are not
apart of the executive team) directors to the audit committee
Answer: What is an example of corporate governance oversight
and regulation?
◉ - independent directors must comprise a majority of the board
- company must have a minimum three-member audit committee
composed of entirley independent auditors
- the audit committee must meet the requirements enumerated in
Sec 301 of SOX and the Securities Exchange Acts Rule 10A-3(b)(1)
- SEC regulation S-K required disclosure in annual reports
whether or not the audit committee includes at least one
"financial expert"
Answer: Public companies in the US that list their equity
securities on the New York Stock Exchange (NYSE) or the Nasdaq
,Stock Market are required to have in place a board of directors
with:
◉ Sec 301 of SOX
Answer: prohibits a director from accepting any direct or indirect
consulting, advisory, or other compensatory fee from the listed
company other than compensation for director service and not
being affiliated with the company or its subsidiaries
◉ - to meet at least annually with the independent auditor and
review the audit report describing independent auditors internal
quality control procedures
- to discuss all relationships between the independent auditor and
the company and to enable assessment of the auditors
independence
- to discuss earnings, press release, and financial information and
earnings guidance given to analysist and rating agencies
- to discuss policies with respect to risk management and risk
assessment
- to meet separately, from time to time, with management, with
internal auditors, and with independent auditors
- to reveiw with the independent auditor any audit problems or
difficulties and management's response to such issues
- to report regularly to the board of directors
- to evaluate the work of the audit committee annually
Answer: What are the key audit committee responsibilities?
, ◉ Corporate Social Repsonsibility
Answer: refers to the ethical expectations that society has for
business, ethical repsonsibilities are those things that we ought to,
or should do, even if we prefer not to
◉ sexual harassment, other forms of discrimination, and
workplace safety
Answer: Corporations have an ethical responsibility to prevent
harm such as:
◉ sustainability and the triple bottom line
Answer: What are the forerunners of conscious capitalism?
◉ Sustainability
Answer: describes the ability to maintain various systems and
processes - environmentally, socially, and economically - over time
◉ Triple Bottom Line
Answer: the three aspects of sustainability, the three P's (people,
planet, and profit)
◉ economic, ecological, social
Answer: What three broad areas does the triple bottom line
describe the scope of reporting in?
