Chapter 01
Ethical Reasoning: Implications for Accounting
Multiple Choice Questions
1. What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
A. Truthfulness
B. Integrity
C. Loyalty
D. Due care
2. Jane finds a material misstatement while auditing a client's accounts receivables. Her senior
tells her to ignore the misstatement so that the client does not get upset. Jane wants to be
viewed as a team player in order to advance in the firm so Jane follows her senior's
instructions and ignores the misstatement. Which ethical theory did Jane use to make her
decision?
A. Egoism
B. Justice
C. Virtue ethics
D. Utilitarianism
,3. Which of the following situations would be considered ethical?
A. The cashier at Wal-Mart gives you $5 more than you were supposed to receive and you
don't do anything about it
B. You accidentally back into a car at Wal-Mart and leave your information for them to call
C. Receiving fake $20 bills and using them in a store while knowing they are fake
D. Finding a phone in a restaurant and keeping it
4. Which of the following characteristics does NOT describe the importance of integrity in
decision making?
A. Acting out of moral principle
B. Being loyal to one's superior
C. Having the courage to do the right thing
D. Not subordinating professional judgment to others
5. Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in
the WorldCom fraud?
A. Persistence
B. Competence
C. Integrity
D. Conformity
,6. The ancient Greeks thought of the virtues as characteristics of behavior that:
A. Could lead to a good life
B. Make up the "six pillars of character"
C. Support the rights theory
D. Rationalize unethical actions
7. Which of the following elements does NOT make up an integral part of what is meant by
"ethics"?
A. Accepted standards of behavior
B. Knowing the difference between right and wrong
C. Always following the law
D. The moral point of view
8. Ethical relativism can best be described as a:
A. Point of view 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.
, 9. Which of the following is NOT a pillar of character according to the Josephson Institute?
A. Caring
B. Citizenship
C. Respect
D. Judgmental
10. Which of the following is NOT an element of trustworthiness according to the Six Pillars of
Character?
A. Reliability
B. Loyalty
C. Fairness
D. Honesty
11. 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. Public interest obligation
Ethical Reasoning: Implications for Accounting
Multiple Choice Questions
1. What is the common characteristic of Aristotle's virtues and ethical standards for CPAs?
A. Truthfulness
B. Integrity
C. Loyalty
D. Due care
2. Jane finds a material misstatement while auditing a client's accounts receivables. Her senior
tells her to ignore the misstatement so that the client does not get upset. Jane wants to be
viewed as a team player in order to advance in the firm so Jane follows her senior's
instructions and ignores the misstatement. Which ethical theory did Jane use to make her
decision?
A. Egoism
B. Justice
C. Virtue ethics
D. Utilitarianism
,3. Which of the following situations would be considered ethical?
A. The cashier at Wal-Mart gives you $5 more than you were supposed to receive and you
don't do anything about it
B. You accidentally back into a car at Wal-Mart and leave your information for them to call
C. Receiving fake $20 bills and using them in a store while knowing they are fake
D. Finding a phone in a restaurant and keeping it
4. Which of the following characteristics does NOT describe the importance of integrity in
decision making?
A. Acting out of moral principle
B. Being loyal to one's superior
C. Having the courage to do the right thing
D. Not subordinating professional judgment to others
5. Which of the following characteristics does NOT describe the behavior of Cynthia Cooper in
the WorldCom fraud?
A. Persistence
B. Competence
C. Integrity
D. Conformity
,6. The ancient Greeks thought of the virtues as characteristics of behavior that:
A. Could lead to a good life
B. Make up the "six pillars of character"
C. Support the rights theory
D. Rationalize unethical actions
7. Which of the following elements does NOT make up an integral part of what is meant by
"ethics"?
A. Accepted standards of behavior
B. Knowing the difference between right and wrong
C. Always following the law
D. The moral point of view
8. Ethical relativism can best be described as a:
A. Point of view 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.
, 9. Which of the following is NOT a pillar of character according to the Josephson Institute?
A. Caring
B. Citizenship
C. Respect
D. Judgmental
10. Which of the following is NOT an element of trustworthiness according to the Six Pillars of
Character?
A. Reliability
B. Loyalty
C. Fairness
D. Honesty
11. 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. Public interest obligation
