ACCT Ethics Midterm(2025/2026)
Certified Exam
Score:_______
Attempt: _____
Ethical relativism can best be described as a:
A. The point of view is 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.
A. The point of view is that morality is relative to the norms of one's culture.
Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to
complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked
to slow down. "You are exceeding the time budget for the audit and making the rest of us look bad," said one staff
member. The best thing for Jason to do is:
A. Tell the other staff members that he will use the time he saves on his budget to help them to meet their budget by
picking up their slack
B. Approach his supervisor to discuss the matter
C. Ignore what is being asked and go about his work as he has always done
D. Tell the other staff members to mind their own business
C. Ignore what is being asked and go about his work as he has always done
Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family-owned business, Cal Poly
Greenery. The company has only three employees - Steve, the husband, and the wife. All three have been friends for
many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the
loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the
company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial
statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective,
Steve has
A. Violated the trust placed in him by the owners
B. Risked his reputation if the owners find out
C. Compromised his integrity
D. All of the above
D. All of the above
Each of the following is a pillar of character according to the Josephson Institute except for:
A. Caring
B. Citizenship
C. Respect
D. Judgmental
D. Judgmental
Each of the following is an element of trustworthiness according to the Josephson Institute except for:
A. Reliability
B. Loyalty
,C. Fairness
D. Honesty
C. Fairness
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. All of the above
B. Confidentiality
When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting
or financial reporting manner?
A. If the CFO does not agree to correct the financial statements
B. The CEO supports the CFO and does not agree to correct the financial statements
C. The external auditors support the CEO and do not agree to correct the financial statements
D. The audit committee should always be the first to be informed about such a difference of opinion
B. The CEO supports the CFO and does not agree to correct the financial statements
An internal accountant should always consider taking each of the following steps after exhausting all avenues of
appeal within the organization when there is a difference of opinion with top management on an accounting or
financial reporting matter except for
A. Inform the SEC
B. Terminate employment with the entity
C. Seek legal advice before taking any action
D. All of the above
D. All of the above
Respect is an important character of behavior because:
A. It entails a loyalty obligation to one's superior
B. It enables one to perform professional services competently
C. It is critical to maintaining one's integrity
D. It encompasses attributes of how we should treat others
D. It encompasses attributes of how we should treat others
Responsibility goes hand in hand with:
A. Respect
B. Loyalty
C. Courage
D. Accountability
D. Accountability
Treating others fairly encompasses treating them:
A. Equally, impartially, and responsibly
B. Equally, responsibly, and openly
C. Impartially, openly, and diligently
D. Equally, impartially, and openly
D. Equally, impartially, and openly
,Empathy entails all of the following characteristics of behavior except for:
A. Being loyal to one's friends
B. Being understanding of one's friends
C. Being sensitive to the feelings of one's friends
D. All of the above
A. Being loyal to one's friends
If one's reputation is tainted it may create a:
A. Conflict of interests
B. Loss of independence
C. Lack of trust
D. All of the above
C. Lack of trust
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:
A. The importance of integrity in decision making
B. The importance of stakeholder groups
C. The need to be independent of the client
D. The importance of exercising objectivity in decision making
C. The need to be independent of the client
Objectivity requires that a CPA should:
A. Maintain a mental attitude of impartiality
B. Maintain a mental attitude of intellectual honesty
C. Be free of conflicts of interest
D. All of the above
D. All of the above
The Independence Principle in the AICPA Code applies to:
A. All accountants and auditors
B. All CPAs regardless of professional services
C. All CPAs who render attestation services
D. All members of the audit committee
C. All CPAs who render attestation services
A CPA would violate the Due Care Principle if he/she:
A. Undertook a professional engagement without having the requisite background, knowledge and experience.
B. Discloses confidential information about a client
C. Violates the Public Interest Principle
D. Performs tax services for an audit client without audit committee approval
A. Undertook a professional engagement without having the requisite background, knowledge and experience.
Aristotle believed that __________ always preceded the choice of action
A. Empathy
B. Due Care
C. Deliberation
, D. Loyalty
C. Deliberation
The method of ethical reasoning that does not deal with making decisions after considering the interests of others is:
A. Egoism
B. Enlightened Egoism
C. Utilitarianism
D. Rights Theory
A. Egoism
The method of ethical reasoning that evaluates actions in terms of harms and benefits is:
A. Act Utilitarianism
B. Rights Theory
C. Justice
D. Virtue
A. Act Utilitarianism
The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over
harms is:
A. Act Utilitarianism
B. Rule Utilitarianism
C. Rights Theory
D. Justice
B. Rule Utilitarianism
The Rights Theory incorporates all of the following elements except for:
A. Act based on the consequences of one's actions on others
B. Treat people as an end and not merely as a means to an end
C. Act in a way you would want others to act in similar situations
D. All of the above
A. Act based on the consequences of one's actions on others
The ethical reasoning method that is based on treating equals, equally and unequals, unequally is:
A. Enlightened egoism
B. Act utilitarianism
C. Justice
D. Virtue
C. Justice
Teleology deals with
A. Consequences of actions
B. Fairness to others
C. Respecting the rights of others
D. Following prescribed virtue characteristics
A. Consequences of actions
Deontology deals with
A. Emphasizes rights of others
Certified Exam
Score:_______
Attempt: _____
Ethical relativism can best be described as a:
A. The point of view is 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.
A. The point of view is that morality is relative to the norms of one's culture.
Jason is the fastest worker on the audit of a company for the firm Zits LLP. Other Zits workers take twice as long to
complete the equivalent amount of work as Jason. One day Jason is approached by the other workers and is asked
to slow down. "You are exceeding the time budget for the audit and making the rest of us look bad," said one staff
member. The best thing for Jason to do is:
A. Tell the other staff members that he will use the time he saves on his budget to help them to meet their budget by
picking up their slack
B. Approach his supervisor to discuss the matter
C. Ignore what is being asked and go about his work as he has always done
D. Tell the other staff members to mind their own business
C. Ignore what is being asked and go about his work as he has always done
Steve is deep in debt due to a gambling problem. He is the bookkeeper for a family-owned business, Cal Poly
Greenery. The company has only three employees - Steve, the husband, and the wife. All three have been friends for
many years. One day the loan shark who lent Steve $20,000 comes knocking at his door asking for repayment of the
loan. Steve convinces the loan shark to give him another day. The following day Steve writes a check on the
company's books to himself for $20,000. Since he reconciles the bank accounts and prepares the financial
statements, Steve knows it's unlikely the owners will ever know about what he has done. From an ethical perspective,
Steve has
A. Violated the trust placed in him by the owners
B. Risked his reputation if the owners find out
C. Compromised his integrity
D. All of the above
D. All of the above
Each of the following is a pillar of character according to the Josephson Institute except for:
A. Caring
B. Citizenship
C. Respect
D. Judgmental
D. Judgmental
Each of the following is an element of trustworthiness according to the Josephson Institute except for:
A. Reliability
B. Loyalty
,C. Fairness
D. Honesty
C. Fairness
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. All of the above
B. Confidentiality
When is it appropriate to contact the audit committee about a difference of opinion with the CFO over an accounting
or financial reporting manner?
A. If the CFO does not agree to correct the financial statements
B. The CEO supports the CFO and does not agree to correct the financial statements
C. The external auditors support the CEO and do not agree to correct the financial statements
D. The audit committee should always be the first to be informed about such a difference of opinion
B. The CEO supports the CFO and does not agree to correct the financial statements
An internal accountant should always consider taking each of the following steps after exhausting all avenues of
appeal within the organization when there is a difference of opinion with top management on an accounting or
financial reporting matter except for
A. Inform the SEC
B. Terminate employment with the entity
C. Seek legal advice before taking any action
D. All of the above
D. All of the above
Respect is an important character of behavior because:
A. It entails a loyalty obligation to one's superior
B. It enables one to perform professional services competently
C. It is critical to maintaining one's integrity
D. It encompasses attributes of how we should treat others
D. It encompasses attributes of how we should treat others
Responsibility goes hand in hand with:
A. Respect
B. Loyalty
C. Courage
D. Accountability
D. Accountability
Treating others fairly encompasses treating them:
A. Equally, impartially, and responsibly
B. Equally, responsibly, and openly
C. Impartially, openly, and diligently
D. Equally, impartially, and openly
D. Equally, impartially, and openly
,Empathy entails all of the following characteristics of behavior except for:
A. Being loyal to one's friends
B. Being understanding of one's friends
C. Being sensitive to the feelings of one's friends
D. All of the above
A. Being loyal to one's friends
If one's reputation is tainted it may create a:
A. Conflict of interests
B. Loss of independence
C. Lack of trust
D. All of the above
C. Lack of trust
The Public Interest Principle in the AICPA Code of Professional Conduct recognizes:
A. The importance of integrity in decision making
B. The importance of stakeholder groups
C. The need to be independent of the client
D. The importance of exercising objectivity in decision making
C. The need to be independent of the client
Objectivity requires that a CPA should:
A. Maintain a mental attitude of impartiality
B. Maintain a mental attitude of intellectual honesty
C. Be free of conflicts of interest
D. All of the above
D. All of the above
The Independence Principle in the AICPA Code applies to:
A. All accountants and auditors
B. All CPAs regardless of professional services
C. All CPAs who render attestation services
D. All members of the audit committee
C. All CPAs who render attestation services
A CPA would violate the Due Care Principle if he/she:
A. Undertook a professional engagement without having the requisite background, knowledge and experience.
B. Discloses confidential information about a client
C. Violates the Public Interest Principle
D. Performs tax services for an audit client without audit committee approval
A. Undertook a professional engagement without having the requisite background, knowledge and experience.
Aristotle believed that __________ always preceded the choice of action
A. Empathy
B. Due Care
C. Deliberation
, D. Loyalty
C. Deliberation
The method of ethical reasoning that does not deal with making decisions after considering the interests of others is:
A. Egoism
B. Enlightened Egoism
C. Utilitarianism
D. Rights Theory
A. Egoism
The method of ethical reasoning that evaluates actions in terms of harms and benefits is:
A. Act Utilitarianism
B. Rights Theory
C. Justice
D. Virtue
A. Act Utilitarianism
The method of ethical reasoning that requires selecting the correct moral rule that produces the greatest benefits over
harms is:
A. Act Utilitarianism
B. Rule Utilitarianism
C. Rights Theory
D. Justice
B. Rule Utilitarianism
The Rights Theory incorporates all of the following elements except for:
A. Act based on the consequences of one's actions on others
B. Treat people as an end and not merely as a means to an end
C. Act in a way you would want others to act in similar situations
D. All of the above
A. Act based on the consequences of one's actions on others
The ethical reasoning method that is based on treating equals, equally and unequals, unequally is:
A. Enlightened egoism
B. Act utilitarianism
C. Justice
D. Virtue
C. Justice
Teleology deals with
A. Consequences of actions
B. Fairness to others
C. Respecting the rights of others
D. Following prescribed virtue characteristics
A. Consequences of actions
Deontology deals with
A. Emphasizes rights of others
