WGU D550 ETHICS FOR
ACCOUNTANTS 2026 TEST BANK
COMPLETE ACTUAL EXAM
QUESTIONS WITH DETAILED
VERIFIED ANSWERS ALREADY
GRADED A+ BRAND NEW!!
"the oldest nonprofit advancing high ethical standards and practices in public and private
institutions - CORRECT ANSWER=> Ethics Resource Center (ERC)"
"a memeber driven association for practitioners responsible for their organization's ethics and
compliance programs - CORRECT ANSWER=> Ethics Compliance and Officer Association (ECOA)"
"What two programs joined together to form the ECI (Ethics Compliance Initiative)? - CORRECT
ANSWER=> ERC (Ethics Resource Center) and ECOA (Ethics Compliance and Officer Association)"
"provides leading ethics and compliance research and best practices, networking opportunities,
and certification to its membership (the go-to organization for ethics and compliance resources
in the workplace) - CORRECT ANSWER=> Ethics Compliance Initiative (ECI)"
"What 5 factors separate the "good" from the "great" compliance programs? - CORRECT
ANSWER=> 1) tone at the top
2) corporate culture
3) risk assessments
4) the CCO (Chief Compliance Officer)
5) testing and monitoring"
"Who stated that "integrity has no need of rules"/ - CORRECT ANSWER=> Albert Camus"
Page | 1
,"What were the key findings found in KPMG's Integirty Survey in 2013? - CORRECT ANSWER=> -
nearly 3 out of 4 employees reported that they had observed misconduct within their
organizations in the previous 12 months
- more than 1/2 of the employees reported what they observed could potentially cause a
significant loss of public trust if discovered
- some of the driving forces behind fraud and misconduct in the corporate environment
included pressure to do "whatever it takes" to meet targets, not taking the code of conduct
seriously, believing employees will be rewarded based upon results and not the means used to
acheive them, and fear of losing one's job for not meeting performance targets (64% reported
the root cause of misconduct was the pressure to do "whatever it takes")
- nearly 1/2 of the employees were uncertain that they would be protected from retaliation if
they reported concerns to management. And more than 1/2 suggested a lack of confidence that
they would be satisfied with the outcome
- eth"
"According to KPMG's survey in 2013, what would employees fo if they observed a violation of
their organization's standard conduct? - CORRECT ANSWER=> - 78% would notify their supervisor
or manager
- 54% would try to resolve the matter directly
- 53% would call the hotline
- 26% would notify someone outside of the organization
- 23% would look the other way or do nothing"
"protects the rights of employees to act together in a concerted manner to address conditions
at work, with or without a union - CORRECT ANSWER=> National Labor Relations Act"
"help manage, direct, and monitor the corporate governance activities to create substainable
stakeholder value - CORRECT ANSWER=> Internal Mechanisms"
"What are some examples of internal mechanisms? - CORRECT ANSWER=> the board of directors
(particularly independent directors), the audit committee, management, IC, and the internal
audit function"
"intended to monitor the company's activities, affairs, and performance to endure that the
interests of insiders (management, directors, and officers) are aligned with the interests of
outsiders (shareholders and other stakeholdders) - CORRECT ANSWER=> External Mechanisms"
Page | 2
,"What are some examples of external mechanisms? - CORRECT ANSWER=> financial markets,
state and federal statutes, SEC regulations, court decisions, and shareholder proposals"
"provides that a director or officer act in good faith, exercise the care that an ordinarily prudent
person would exercise in similar circumstances, and act in a way that is considered to be in the
interests of the corporation - CORRECT ANSWER=> Due Care"
"requires faithfulness; a director must place the interests of the corporation ahead of their
personal interest - CORRECT ANSWER=> Duty of Loyalty"
"requires an honesty of purpose that leads to caring for the well-being of the constituents of
the fiduciary - CORRECT ANSWER=> Good Faith"
"a corporate director or officer may be able to avoid liability to the corporation or to its
shareholders for poor business judgements - CORRECT ANSWER=> Business Judgement Rule"
"To obtain the business judgement rule's protection: - CORRECT ANSWER=> - 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"
"the preeminent forum for the resolution of commercial business litigation matters including
the duties of officers and directors - CORRECT ANSWER=> Chancery Court"
"What is the foundational purpose of the chancery court? - CORRECT ANSWER=> to be an equity
court - to provide relief suited to the circumstances when no adequate remedy if available at
law"
"What was the characterization of corporate governance provided by Ferell et al? - CORRECT
ANSWER=> "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""
"The role of corporate governance systems is to: - CORRECT ANSWER=> - maximize shareholder
wealth
Page | 3
, - represnt all stakeholders
- stewardship function - fiduciary duty of managers"
"What is an example of corporate governance oversight and regulation? - CORRECT ANSWER=> to
appoint nonexecutive (members of the board who are not apart of the executive team)
directors to the audit committee"
"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: -
CORRECT ANSWER=> - 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""
"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 - CORRECT ANSWER=> Sec 301 of SOX"
"What are the key audit committee responsibilities? - CORRECT ANSWER=> - 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"
Page | 4
ACCOUNTANTS 2026 TEST BANK
COMPLETE ACTUAL EXAM
QUESTIONS WITH DETAILED
VERIFIED ANSWERS ALREADY
GRADED A+ BRAND NEW!!
"the oldest nonprofit advancing high ethical standards and practices in public and private
institutions - CORRECT ANSWER=> Ethics Resource Center (ERC)"
"a memeber driven association for practitioners responsible for their organization's ethics and
compliance programs - CORRECT ANSWER=> Ethics Compliance and Officer Association (ECOA)"
"What two programs joined together to form the ECI (Ethics Compliance Initiative)? - CORRECT
ANSWER=> ERC (Ethics Resource Center) and ECOA (Ethics Compliance and Officer Association)"
"provides leading ethics and compliance research and best practices, networking opportunities,
and certification to its membership (the go-to organization for ethics and compliance resources
in the workplace) - CORRECT ANSWER=> Ethics Compliance Initiative (ECI)"
"What 5 factors separate the "good" from the "great" compliance programs? - CORRECT
ANSWER=> 1) tone at the top
2) corporate culture
3) risk assessments
4) the CCO (Chief Compliance Officer)
5) testing and monitoring"
"Who stated that "integrity has no need of rules"/ - CORRECT ANSWER=> Albert Camus"
Page | 1
,"What were the key findings found in KPMG's Integirty Survey in 2013? - CORRECT ANSWER=> -
nearly 3 out of 4 employees reported that they had observed misconduct within their
organizations in the previous 12 months
- more than 1/2 of the employees reported what they observed could potentially cause a
significant loss of public trust if discovered
- some of the driving forces behind fraud and misconduct in the corporate environment
included pressure to do "whatever it takes" to meet targets, not taking the code of conduct
seriously, believing employees will be rewarded based upon results and not the means used to
acheive them, and fear of losing one's job for not meeting performance targets (64% reported
the root cause of misconduct was the pressure to do "whatever it takes")
- nearly 1/2 of the employees were uncertain that they would be protected from retaliation if
they reported concerns to management. And more than 1/2 suggested a lack of confidence that
they would be satisfied with the outcome
- eth"
"According to KPMG's survey in 2013, what would employees fo if they observed a violation of
their organization's standard conduct? - CORRECT ANSWER=> - 78% would notify their supervisor
or manager
- 54% would try to resolve the matter directly
- 53% would call the hotline
- 26% would notify someone outside of the organization
- 23% would look the other way or do nothing"
"protects the rights of employees to act together in a concerted manner to address conditions
at work, with or without a union - CORRECT ANSWER=> National Labor Relations Act"
"help manage, direct, and monitor the corporate governance activities to create substainable
stakeholder value - CORRECT ANSWER=> Internal Mechanisms"
"What are some examples of internal mechanisms? - CORRECT ANSWER=> the board of directors
(particularly independent directors), the audit committee, management, IC, and the internal
audit function"
"intended to monitor the company's activities, affairs, and performance to endure that the
interests of insiders (management, directors, and officers) are aligned with the interests of
outsiders (shareholders and other stakeholdders) - CORRECT ANSWER=> External Mechanisms"
Page | 2
,"What are some examples of external mechanisms? - CORRECT ANSWER=> financial markets,
state and federal statutes, SEC regulations, court decisions, and shareholder proposals"
"provides that a director or officer act in good faith, exercise the care that an ordinarily prudent
person would exercise in similar circumstances, and act in a way that is considered to be in the
interests of the corporation - CORRECT ANSWER=> Due Care"
"requires faithfulness; a director must place the interests of the corporation ahead of their
personal interest - CORRECT ANSWER=> Duty of Loyalty"
"requires an honesty of purpose that leads to caring for the well-being of the constituents of
the fiduciary - CORRECT ANSWER=> Good Faith"
"a corporate director or officer may be able to avoid liability to the corporation or to its
shareholders for poor business judgements - CORRECT ANSWER=> Business Judgement Rule"
"To obtain the business judgement rule's protection: - CORRECT ANSWER=> - 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"
"the preeminent forum for the resolution of commercial business litigation matters including
the duties of officers and directors - CORRECT ANSWER=> Chancery Court"
"What is the foundational purpose of the chancery court? - CORRECT ANSWER=> to be an equity
court - to provide relief suited to the circumstances when no adequate remedy if available at
law"
"What was the characterization of corporate governance provided by Ferell et al? - CORRECT
ANSWER=> "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""
"The role of corporate governance systems is to: - CORRECT ANSWER=> - maximize shareholder
wealth
Page | 3
, - represnt all stakeholders
- stewardship function - fiduciary duty of managers"
"What is an example of corporate governance oversight and regulation? - CORRECT ANSWER=> to
appoint nonexecutive (members of the board who are not apart of the executive team)
directors to the audit committee"
"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: -
CORRECT ANSWER=> - 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""
"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 - CORRECT ANSWER=> Sec 301 of SOX"
"What are the key audit committee responsibilities? - CORRECT ANSWER=> - 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"
Page | 4
