ACG 445 EXAM 1 QUESTIONS AND ANSWERS
professional judgment is influenced by:
a) personal behavioral traits
b) personal code of ethics
c) organizational values
d) organizational dissonance - CORRECT ANSWER✅✅a) personal behavioral traits
personal values link to:
a) ethical motivation and action
b) ethical sensitivity
c) ethical judgment and motivation
d) ethical sensitivity and judgment - CORRECT ANSWER✅✅d) ethical sensitivity and judgment
common judgement traps include:
a) reacting to pressures, a rush to solve problems, and systems 1 thinking
b) systems 1 thinking, cognitive dissonance, a rush to solve problems
c) group think, judgment triggers, and a rush to solve problems
d) group think, judgment triggers, and reacting to pressures - CORRECT ANSWER✅✅c) group think,
judgment triggers, and a rush to solve problems
which of the following is NOT a common judgment tendency
a) confirmation tendency
b) over confidence tendency
c) availability tendency
,d) decision- making tendency - CORRECT ANSWER✅✅decision making tendency
professional skepticism can best be defined as having:
a) an inquiring mind and suspension of belief
b) careful observation and virtue-based decision making
c) an inquiring mind and deliberate decision making
d) deliberate decision- making and suspension of belief - CORRECT ANSWER✅✅a) an inquiring mind
and suspension of belief
professional skepticism links to professional judgment through the ethical standards of:
a) objectivity, intelligence, and reflective thought
b) honesty, integrity, and due care
c) independent thought, objectivity, and due care
d) independent thought, objectivity, and intelligence - CORRECT ANSWER✅✅c) independent thought,
objectivity, and due care
Jacob just joined the firm of Gordon & Towns LLC. Prior to beginning his first group audit assignment,
Jacob asks to meet with his mentor, Isaac. He asks Isaac how making judgments in an audit team setting
differs from running an audit oneself. What is the best advice for Isaac to give to Jacob?:
a) good judgment principles apply only in group settings since other are involved
b) they are not the same
c) groups are not prone to judgment traps and biases
d) groups are prone to making quick decisions in order to avoid conflicts - CORRECT ANSWER✅✅d)
groups are prone to making quick decisions in order to avoid conflict
, The global code of ethics for the accounting profession is called:
a) handbook of the code of ethics for professional accountants
b) IMA ethical and professional standards
c) public interest framework for the accountancy profession
d) AICPA code of professional conduct - CORRECT ANSWER✅✅a) handbook of the code of ethics for
professional accountants
the house subcommittee on oversight and investigations made its recommendations after looking into
failures at each of the following companies except:
a) ESM government securities
b) penn square bank
c) enron
d) continental Illinois National Bank and Trust - CORRECT ANSWER✅✅c) enron
in its investigation of zzzz best, the house subcommittee on oversight and investigations looked into:
a) how the company was able to create 80% or more fictitious revenue
b) why the board of directors failed to uncover the fraud at zzzz best
c) how the company was able to create cookie jar reserves
d) all of the above - CORRECT ANSWER✅✅a) how the company was able to create 80% or more
fictitious revenue
the most significant change in the revised aicpa code of professional conduct is
a) eliminating code coverage for members in business
b) a conceptual framework approach for evaluating ethics violations
c) clarifying that all CPAs must follow the Independence rule regardless of professional services
professional judgment is influenced by:
a) personal behavioral traits
b) personal code of ethics
c) organizational values
d) organizational dissonance - CORRECT ANSWER✅✅a) personal behavioral traits
personal values link to:
a) ethical motivation and action
b) ethical sensitivity
c) ethical judgment and motivation
d) ethical sensitivity and judgment - CORRECT ANSWER✅✅d) ethical sensitivity and judgment
common judgement traps include:
a) reacting to pressures, a rush to solve problems, and systems 1 thinking
b) systems 1 thinking, cognitive dissonance, a rush to solve problems
c) group think, judgment triggers, and a rush to solve problems
d) group think, judgment triggers, and reacting to pressures - CORRECT ANSWER✅✅c) group think,
judgment triggers, and a rush to solve problems
which of the following is NOT a common judgment tendency
a) confirmation tendency
b) over confidence tendency
c) availability tendency
,d) decision- making tendency - CORRECT ANSWER✅✅decision making tendency
professional skepticism can best be defined as having:
a) an inquiring mind and suspension of belief
b) careful observation and virtue-based decision making
c) an inquiring mind and deliberate decision making
d) deliberate decision- making and suspension of belief - CORRECT ANSWER✅✅a) an inquiring mind
and suspension of belief
professional skepticism links to professional judgment through the ethical standards of:
a) objectivity, intelligence, and reflective thought
b) honesty, integrity, and due care
c) independent thought, objectivity, and due care
d) independent thought, objectivity, and intelligence - CORRECT ANSWER✅✅c) independent thought,
objectivity, and due care
Jacob just joined the firm of Gordon & Towns LLC. Prior to beginning his first group audit assignment,
Jacob asks to meet with his mentor, Isaac. He asks Isaac how making judgments in an audit team setting
differs from running an audit oneself. What is the best advice for Isaac to give to Jacob?:
a) good judgment principles apply only in group settings since other are involved
b) they are not the same
c) groups are not prone to judgment traps and biases
d) groups are prone to making quick decisions in order to avoid conflicts - CORRECT ANSWER✅✅d)
groups are prone to making quick decisions in order to avoid conflict
, The global code of ethics for the accounting profession is called:
a) handbook of the code of ethics for professional accountants
b) IMA ethical and professional standards
c) public interest framework for the accountancy profession
d) AICPA code of professional conduct - CORRECT ANSWER✅✅a) handbook of the code of ethics for
professional accountants
the house subcommittee on oversight and investigations made its recommendations after looking into
failures at each of the following companies except:
a) ESM government securities
b) penn square bank
c) enron
d) continental Illinois National Bank and Trust - CORRECT ANSWER✅✅c) enron
in its investigation of zzzz best, the house subcommittee on oversight and investigations looked into:
a) how the company was able to create 80% or more fictitious revenue
b) why the board of directors failed to uncover the fraud at zzzz best
c) how the company was able to create cookie jar reserves
d) all of the above - CORRECT ANSWER✅✅a) how the company was able to create 80% or more
fictitious revenue
the most significant change in the revised aicpa code of professional conduct is
a) eliminating code coverage for members in business
b) a conceptual framework approach for evaluating ethics violations
c) clarifying that all CPAs must follow the Independence rule regardless of professional services
