Test Bank for Business and Professional Ethics for Directors Executives Accountants 8th Edition Brooks 9781305971455

1. The difference between what the public thinks it is getting in audited financial
statements and what the public is actually getting is known as the
.acredibility gap.
.bexpectations gap.
.caudit gap.
.dstewardship gap.
.eNone of these are correct.
:ANSWER b
:POINTS 1
:REFERENCES The Ethics Environment for Business: The Battle for Credibility,
Reputation, & Competitive Advantage
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 12:45 4/11/2018
:DATE MODIFIED AM 9:16 4/13/2018



2. Which of the following is NOT a trend described in Chapter 1 as having an impact
on the ethics of business?
.adirectors’ legal liability
.bmanagement’s stated intention to protect reputation
.cauditors’ legal liability
.dmanagement’s assertions to shareholders on the adequacy of internal
controls
.emanagement’s stated intention to manage risk
:ANSWER c
:POINTS 1
:REFERENCES Responses & Developments
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 12:49 4/11/2018
:DATE MODIFIED AM 12:53 4/11/2018



3. Which corporate report discusses subjects that include environmental, health and
safety, philanthropic and other social impacts?
.acorporate annual report
.bcorporate social responsibility report
.ccorporate quarterly report
.dcorporate stakeholder report
.ecorporate ethics committee report

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, :ANSWER b
:POINTS 1
:REFERENCES The Ethics Environment for Business: The Battle for Credibility,
Reputation, & Competitive Advantage
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 12:51 4/11/2018
:DATE MODIFIED AM 12:52 4/11/2018



4. Professional accountants, in their fiduciary role, owe their primary loyalty to
.athe accounting profession.
.bthe client.
.cthe general public.
.dgovernment regulations.
.eAll of these are correct.
:ANSWER c
:POINTS 1
:REFERENCES New Expectations for Business
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 12:56 4/11/2018
:DATE MODIFIED AM 12:56 4/11/2018



5. Ethical corporate behavior is expected to lead to
.ahigher profitability in the short-term.
.bhigher profitability both in the short-term and long-term.
.clower profitability in the long-term.
.dhigher profitability in the long-term.
.elower profitability both in the short-term and long-term.
:ANSWER d
:POINTS 1
:REFERENCES The Ethics Environment for Business: The Battle for Credibility,
Reputation & Competitive Advantage
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Comprehension
:DATE CREATED AM 12:57 4/11/2018
:DATE MODIFIED AM 12:58 4/11/2018


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,6. Examining the interests of stakeholders is probably required for
.ahigh short-term profits.
.boptimal medium and longer-term profits.
.ccontinuing support from stakeholder groups.
.deffective risk management.
.eAll of these are correct.
:ANSWER a
:POINTS 1
:REFERENCES Responses & Developments
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Comprehension
:DATE CREATED AM 1:13 4/11/2018
:DATE MODIFIED AM 1:13 4/11/2018



7. A value that is almost universally respected by stakeholder groups is a
.asuper norm.
.balfa norm.
.cvalue norm.
.dhypernorm.
.egeneral norm.
:ANSWER d
:POINTS 1
:REFERENCES Responses & Developments
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 1:15 4/11/2018
:DATE MODIFIED AM 1:16 4/11/2018



8. Since the mid-1990s, both management and auditors have become increasingly
.aprofit management oriented.
.bethics oriented.
.cvalue management oriented.
.drisk management oriented.
.eethics oriented and risk management oriented.
:ANSWER e
:POINTS 1
:REFERENCES Responses & Development

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, :QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Comprehension
:DATE CREATED AM 1:19 4/11/2018
:DATE MODIFIED AM 1:20 4/11/2018



9. Which of the following are determinants of reputation?
.atrustworthiness and responsibility
.bcredibility, responsibility and relevance
.cresponsibility and impartiality
.drelevance and impartiality
.erelevance, credibility and responsibility
:ANSWER a
:POINTS 1
:REFERENCES Responses & Development
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Comprehension
:DATE CREATED AM 1:20 4/11/2018
:DATE MODIFIED AM 1:21 4/11/2018



10. Which of the following would be a key control function of the Board of Directors?
.ato set guidance and boundaries
.bto appoint the CEO
.cto approve the sale of company’s assets
.dto decide on the company’s auditor
.eAll of these are correct.
:ANSWER e
:POINTS 1
:REFERENCES Responses & Development
:QUESTION TYPE Multiple Choice
:HAS VARIABLES False
:KEYWORDS Bloom’s: Remembering
:DATE CREATED AM 1:22 4/11/2018
:DATE MODIFIED AM 1:22 4/11/2018



11. Companies attempt to manage the risk of something happening that will have a
negative or positive impact on the company’s objectives, such as
.acredit risks.
.blitigation risk.
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