lOMoAR cPSD| 22896205
Ethical Obligations and Decision-Making, 5e (Mintz) Chapter 1
Ethical Reasoning: Implications for Accounting
1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
A) Truthfulness
B) Integrity
C) Loyalty
D) Due care
Answer: B
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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) Egoism
B) Justice
C) Virtue ethics
D) Utilitarianism
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical
reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: B
Difficulty: 2 Medium
Topic: What Is Ethics?
, lOMoAR cPSD| 22896205
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: B
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
5) Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in
the WorldCom fraud?
A) Persistence
B) Competence
C) Integrity
D) Conformity
Answer: D
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting; AICPA Code of Conduct
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.; 01-06 Discuss the Principles section of the AICPA Code of
Professional Conduct.
Bloom's: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical
, lOMoAR cPSD| 22896205
reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: C
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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.
Answer: A
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision
making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
9) Which of the following is NOT a pillar of character according to the Josephson Institute?
A) Caring
B) Citizenship
C) Respect
D) Judgmental
Answer: D
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision
making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
, lOMoAR cPSD| 22896205
10) Which of the following is NOT an element of trustworthiness according to the Six Pillars of
Character?
A) Reliability
B) Loyalty
C) Fairness
D) Honesty
Answer: C
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
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) Confidentiality
C) One's reliability obligation
D) Public interest obligation
Answer: B
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
12) Social networking is the norm for many workers, and some workers spend at least 30 percent
of their workday linked up to one or more networks. The Ethics Resource Center conducted a
survey in which social networkers admitted each of the following except:
A) They think about risks before posting online.
B) They comment on their personal sites about their company if it was in the news.
C) They often comment on their personal sites about managers, coworkers, and even clients.
D) They always consider the consequences of their postings on others.
Answer: D
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
Ethical Obligations and Decision-Making, 5e (Mintz) Chapter 1
Ethical Reasoning: Implications for Accounting
1) What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
A) Truthfulness
B) Integrity
C) Loyalty
D) Due care
Answer: B
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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) Egoism
B) Justice
C) Virtue ethics
D) Utilitarianism
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical
reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: B
Difficulty: 2 Medium
Topic: What Is Ethics?
, lOMoAR cPSD| 22896205
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: B
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
5) Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in
the WorldCom fraud?
A) Persistence
B) Competence
C) Integrity
D) Conformity
Answer: D
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting; AICPA Code of Conduct
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.; 01-06 Discuss the Principles section of the AICPA Code of
Professional Conduct.
Bloom's: Analyze
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: A
Difficulty: 2 Medium
Topic: Modern Moral Philosophies
Learning Objective: 01-04 Differentiate between moral philosophies and their effect on ethical
, lOMoAR cPSD| 22896205
reasoning in accounting.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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
Answer: C
Difficulty: 1 Easy
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
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.
Answer: A
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision
making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
9) Which of the following is NOT a pillar of character according to the Josephson Institute?
A) Caring
B) Citizenship
C) Respect
D) Judgmental
Answer: D
Difficulty: 2 Medium
Topic: The Six Pillars of Character
Learning Objective: 01-03 Describe how the pillars of character support ethical decision
making.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
, lOMoAR cPSD| 22896205
10) Which of the following is NOT an element of trustworthiness according to the Six Pillars of
Character?
A) Reliability
B) Loyalty
C) Fairness
D) Honesty
Answer: C
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Understand
AACSB: Ethics
Accessibility: Keyboard Navigation
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) Confidentiality
C) One's reliability obligation
D) Public interest obligation
Answer: B
Difficulty: 2 Medium
Topic: Integrity: The Basis of Accounting
Learning Objective: 01-01 Explain how integrity enables a CPA to withstand pressures and
avoid subordination of judgment.
Bloom's: Apply
AACSB: Ethics
Accessibility: Keyboard Navigation
12) Social networking is the norm for many workers, and some workers spend at least 30 percent
of their workday linked up to one or more networks. The Ethics Resource Center conducted a
survey in which social networkers admitted each of the following except:
A) They think about risks before posting online.
B) They comment on their personal sites about their company if it was in the news.
C) They often comment on their personal sites about managers, coworkers, and even clients.
D) They always consider the consequences of their postings on others.
Answer: D
Difficulty: 2 Medium
Topic: What Is Ethics?
Learning Objective: 01-02 Discuss the relationship between one's values and ethics; and legal
obligations.
Bloom's: Evaluate
AACSB: Ethics
Accessibility: Keyboard Navigation
