,Test Bank For Business and Professional Ethics 9th Edition
CHAPTER 1 ETHICS EXPECTATIONS
CHAPTER 1 ETHICS EXPECTATIONS
1. 01: The difference between what the public thinks it is getting
The difference between what the public thinks it is getting in audited financial statements
and what the public is actually getting is known as:
a. the credibility gap.
*b. the expectations gap.
c. the audit gap.
d. the stewardship gap.
e. None of the above
2. 02: Which of the following is not a trend described in Chapter 1
Which of the following is not a trend described in Chapter 1 as having an impact on the
ethics of business?
a. Directors’ legal liability
b. Management’s stated intention to protect reputation
*c. Auditors’ legal liability
d. Management’s assertions to shareholders on the adequacy of internal controls
e. Management’s stated intention to manage risk
3. 03: Which corporate report discusses subjects that include envir
Which corporate report discusses subjects that include environmental, health and safety,
philanthropic, and other social impacts?
a. A corporate annual report
*b. A corporate social responsibility report
c. A corporate quarterly report
d. A corporate stakeholder report
e. A corporate ethics committee report
4. 04: Professional accountants, in their fiduciary role, owe their
Professional accountants, in their fiduciary role, owe their primary loyalty to:
a. the accounting profession.
b. the client.
*c. the general public.
d. government regulations.
e. All of the above
5. 05: Ethical corporate behavior is expected to lead to:
Ethical corporate behavior is expected to lead to:
1
,Test Bank For Business and Professional Ethics 9th Edition
CHAPTER 1 ETHICS EXPECTATIONS
a. higher profitability in the short term.
b. higher profitability in both the short term and the long term.
c. lower profitability in the long term.
*d. higher profitability in the long term.
e. lower profitability in both the short term and the long term.
6. 06: Examining the interests of stakeholders is probably required
Examining the interests of stakeholders is probably required for:
*a. high short-term profits.
b. optimal medium- and longer-term profits.
c. continuing support from stakeholder groups.
d. effective risk management.
e. All of the above
7. 07: A value that is almost universally respected by stakeholder
A value that is almost universally respected by stakeholder groups is:
a. a super norm.
b. an alfa norm.
c. a value norm.
*d. a hypernorm.
e. a general norm.
8. 08: Since the mid-1990s, both management and auditors have becom
Since the mid-1990s, both management and auditors have become increasingly:
a. profit management oriented.
*b. ethics oriented.
c. value management oriented.
*d. risk management oriented.
e. marketing oriented.
9. 09: The following are determinants of reputation.
The following are determinants of reputation.
*a. Trustworthiness and responsibility
b. Credibility, responsibility, and relevance
c. Responsibility and impartiality
d. Relevance and impartiality
e. Relevance, credibility, and responsibility
2
, Test Bank For Business and Professional Ethics 9th Edition
CHAPTER 1 ETHICS EXPECTATIONS
10. 10: The following would be a key control function of a board of
The following would be a key control function of a board of directors.
a. Set guidance and boundaries
b. Appoint the CEO
c. Approve the sale of the company’s assets
d. Decide on the company’s auditor
*e. All of the above
11. 11: Companies attempt to manage the risk of something happening
Companies attempt to manage the risk of something happening that will have a negative
or positive impact on the company’s objectives, such as:
a. credit risks.
b. litigation risks.
c. reputation risks.
d. ethics risks.
*e. All of the above
12. 12: Most large corporations do not consider these risks in a bro
Most large corporations do not consider these risks in a broad and comprehensive way.
a. Operational risks
b. Reputational risks
c. Credit risks
d. Market risks
*e. Ethics risks
13. 13: The following are examples of ethics risks faced by employee
The following are examples of ethics risks faced by employees.
a. Honesty and integrity
*b. Fairness and compassion
c. Integrity and responsibility
d. Fairness and integrity
e. Responsibility and honesty
14. 14: Not reporting environmental issues is an example of:
Not reporting environmental issues is an example of:
a. a lack of transparency.
*b. a lack of integrity.
3
CHAPTER 1 ETHICS EXPECTATIONS
CHAPTER 1 ETHICS EXPECTATIONS
1. 01: The difference between what the public thinks it is getting
The difference between what the public thinks it is getting in audited financial statements
and what the public is actually getting is known as:
a. the credibility gap.
*b. the expectations gap.
c. the audit gap.
d. the stewardship gap.
e. None of the above
2. 02: Which of the following is not a trend described in Chapter 1
Which of the following is not a trend described in Chapter 1 as having an impact on the
ethics of business?
a. Directors’ legal liability
b. Management’s stated intention to protect reputation
*c. Auditors’ legal liability
d. Management’s assertions to shareholders on the adequacy of internal controls
e. Management’s stated intention to manage risk
3. 03: Which corporate report discusses subjects that include envir
Which corporate report discusses subjects that include environmental, health and safety,
philanthropic, and other social impacts?
a. A corporate annual report
*b. A corporate social responsibility report
c. A corporate quarterly report
d. A corporate stakeholder report
e. A corporate ethics committee report
4. 04: Professional accountants, in their fiduciary role, owe their
Professional accountants, in their fiduciary role, owe their primary loyalty to:
a. the accounting profession.
b. the client.
*c. the general public.
d. government regulations.
e. All of the above
5. 05: Ethical corporate behavior is expected to lead to:
Ethical corporate behavior is expected to lead to:
1
,Test Bank For Business and Professional Ethics 9th Edition
CHAPTER 1 ETHICS EXPECTATIONS
a. higher profitability in the short term.
b. higher profitability in both the short term and the long term.
c. lower profitability in the long term.
*d. higher profitability in the long term.
e. lower profitability in both the short term and the long term.
6. 06: Examining the interests of stakeholders is probably required
Examining the interests of stakeholders is probably required for:
*a. high short-term profits.
b. optimal medium- and longer-term profits.
c. continuing support from stakeholder groups.
d. effective risk management.
e. All of the above
7. 07: A value that is almost universally respected by stakeholder
A value that is almost universally respected by stakeholder groups is:
a. a super norm.
b. an alfa norm.
c. a value norm.
*d. a hypernorm.
e. a general norm.
8. 08: Since the mid-1990s, both management and auditors have becom
Since the mid-1990s, both management and auditors have become increasingly:
a. profit management oriented.
*b. ethics oriented.
c. value management oriented.
*d. risk management oriented.
e. marketing oriented.
9. 09: The following are determinants of reputation.
The following are determinants of reputation.
*a. Trustworthiness and responsibility
b. Credibility, responsibility, and relevance
c. Responsibility and impartiality
d. Relevance and impartiality
e. Relevance, credibility, and responsibility
2
, Test Bank For Business and Professional Ethics 9th Edition
CHAPTER 1 ETHICS EXPECTATIONS
10. 10: The following would be a key control function of a board of
The following would be a key control function of a board of directors.
a. Set guidance and boundaries
b. Appoint the CEO
c. Approve the sale of the company’s assets
d. Decide on the company’s auditor
*e. All of the above
11. 11: Companies attempt to manage the risk of something happening
Companies attempt to manage the risk of something happening that will have a negative
or positive impact on the company’s objectives, such as:
a. credit risks.
b. litigation risks.
c. reputation risks.
d. ethics risks.
*e. All of the above
12. 12: Most large corporations do not consider these risks in a bro
Most large corporations do not consider these risks in a broad and comprehensive way.
a. Operational risks
b. Reputational risks
c. Credit risks
d. Market risks
*e. Ethics risks
13. 13: The following are examples of ethics risks faced by employee
The following are examples of ethics risks faced by employees.
a. Honesty and integrity
*b. Fairness and compassion
c. Integrity and responsibility
d. Fairness and integrity
e. Responsibility and honesty
14. 14: Not reporting environmental issues is an example of:
Not reporting environmental issues is an example of:
a. a lack of transparency.
*b. a lack of integrity.
3
