Accounting Ethics Exam 1 With 100%
Correct And Verified Answers
What are the hallmarks of a profession? - Correct Answer--
extensive training & continuing education
- intellectual in nature
- specific professional code of ethics & standards
- certified/licensed
- provide services to society
- autonomous/self-regulated
- representation by bodies
According to a survey conducted by CGMA Magazine, what
are the three highest-ranking attributes of a professional? -
Correct Answer-- having expertise/specialized knowledge
- acting ethically (deliberately) & influencing others to act
ethically
- hold themselves to high standards
- strong reputation & credibility
Beyond their technical skills, what value do accountants add
to the professional services they provide? - Correct Answer-
Personal ethics which are influenced by:
- colleagues
- upbringing & family
- religion
- culture
- environment
- friends
- laws
Vendarsol
,Why is it important for an accountant to maintain
credibility and what must he do to maintain credibility? -
Correct Answer-- Their individual credibility directly relates
to their firm
- Credibility is their reputation and creates trust amongst
their clients and their colleagues
Maintain credibility by being free from conflicts of interest,
having no bias, follow the rules, and know the standards
Maintain competence & ethics = maintain credibility
What are the two core ethics philosophies? - Correct
Answer-Consequentialism: focuses on the consequences of
one's ethics (the means justify the ends) considers how the
marginal benefits and costs of a decision affect society as a
whole, rather than just the impact on a single company
Deontology:
focuses on duties; if you fulfill your duties, you are acting
ethically regardless of the consequences; people innately owe
certain duties to each other and should conform to this
mandate, without regard to how their actions impact society
Explain Consequentialism generally and Utilitarianism
specifically, including criticisms. - Correct Answer-
Consequentialism focuses on the consequences of one's
ethics.
Vendarsol
, Utilitarianism-- an act is ethical if, on balance, it improves
the overall well-being (utility) of all members of society;
greatest good for greatest number of people.
3 Step Process of Utilitarianism--
1. identify all stakeholders (people who are affected by your
decision)
2. perform a cost/benefit analysis
3. weigh the cost/benefits and figure out which decision would
have the most positive effects on the most people
Criticisms of Utilitarianism:
- analysis doesn't consider the degree of the
costs/benefits
- considers only the ends, not the means
- although it produces a net benefit, it may
not be ethical
- may sacrifice minority for the majority
Explain Deontology generally and the
Universality and Reversibility Principles
specifically. - Correct Answer-Deontology
focuses on duties that people owe to others.
Universality Principle: 6 certain duties and
corresponding rights apply globally to all
people, in all situations. The duty:
1. to not physically harm others
2. to respect others' privacy
3. to respect others' right of free association
Vendarsol
Correct And Verified Answers
What are the hallmarks of a profession? - Correct Answer--
extensive training & continuing education
- intellectual in nature
- specific professional code of ethics & standards
- certified/licensed
- provide services to society
- autonomous/self-regulated
- representation by bodies
According to a survey conducted by CGMA Magazine, what
are the three highest-ranking attributes of a professional? -
Correct Answer-- having expertise/specialized knowledge
- acting ethically (deliberately) & influencing others to act
ethically
- hold themselves to high standards
- strong reputation & credibility
Beyond their technical skills, what value do accountants add
to the professional services they provide? - Correct Answer-
Personal ethics which are influenced by:
- colleagues
- upbringing & family
- religion
- culture
- environment
- friends
- laws
Vendarsol
,Why is it important for an accountant to maintain
credibility and what must he do to maintain credibility? -
Correct Answer-- Their individual credibility directly relates
to their firm
- Credibility is their reputation and creates trust amongst
their clients and their colleagues
Maintain credibility by being free from conflicts of interest,
having no bias, follow the rules, and know the standards
Maintain competence & ethics = maintain credibility
What are the two core ethics philosophies? - Correct
Answer-Consequentialism: focuses on the consequences of
one's ethics (the means justify the ends) considers how the
marginal benefits and costs of a decision affect society as a
whole, rather than just the impact on a single company
Deontology:
focuses on duties; if you fulfill your duties, you are acting
ethically regardless of the consequences; people innately owe
certain duties to each other and should conform to this
mandate, without regard to how their actions impact society
Explain Consequentialism generally and Utilitarianism
specifically, including criticisms. - Correct Answer-
Consequentialism focuses on the consequences of one's
ethics.
Vendarsol
, Utilitarianism-- an act is ethical if, on balance, it improves
the overall well-being (utility) of all members of society;
greatest good for greatest number of people.
3 Step Process of Utilitarianism--
1. identify all stakeholders (people who are affected by your
decision)
2. perform a cost/benefit analysis
3. weigh the cost/benefits and figure out which decision would
have the most positive effects on the most people
Criticisms of Utilitarianism:
- analysis doesn't consider the degree of the
costs/benefits
- considers only the ends, not the means
- although it produces a net benefit, it may
not be ethical
- may sacrifice minority for the majority
Explain Deontology generally and the
Universality and Reversibility Principles
specifically. - Correct Answer-Deontology
focuses on duties that people owe to others.
Universality Principle: 6 certain duties and
corresponding rights apply globally to all
people, in all situations. The duty:
1. to not physically harm others
2. to respect others' privacy
3. to respect others' right of free association
Vendarsol
