Business Ethics Ethical Decision Making And Cases An Asia Edition 1st Edition By David – Test Bank

1. Which of the following has a significant impact on the success of an ethics program?
a. The types of ethical decisions
b. The quality of communication
c. The size of the company
d. Legal constraints
e. A statement of values
ANSWER: b

2. Which of the following statements about ethics audits is false?
a. They provide an opportunity to measure conformity to the firm’s desired ethical standards.
b. The terms ethics audits and social audits can be used interchangeably.
c. They provide an objective method for demonstrating a company’s commitment to improving strategic planning, including its compliance with legal and ethical standards and social responsibility.
d. They can be a component of social audits.
e. They are systematic evaluations of an organization’s ethics program and performance to determine whether it is effective.
ANSWER: b

3. Which of the following is a possible unintended consequence of an organization focusing more on ethics planning than on implementation?
a. Employees may come to view unethical conduct as acceptable behavior.
b. The government will implement its own audits.
c. The ethics program will never be created.
d. Employees will become dissatisfied with their jobs.
e. The implementation process will incur large costs for the organization.
ANSWER: a

4. A(n) _____ is a tool that companies can employ to identify and measure their ethical commitment to stakeholders.
a. ethics audit
b. social audit
c. financial audit
d. performance audit
e. external audit
ANSWER: a

5. Which of the following is not a step in the ethics auditing process?
a. Secure commitment of top executives and directors.
b. Review organizational mission, goals, values and policies, and define ethical priorities.
c. Report the results to the U.S. Sentencing Commission.
d. Collect and analyze relevant information.
e. Verify the results.
ANSWER: c

6. Which of the following is a statement that attests that the financial statements made in an audit are fairly stated, without limitations?
a. Adverse opinion
b. Qualified opinion
c. Unqualified opinion
d. Favorable opinion
e. Disclaimer of opinion
ANSWER: c

7. Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.
a. Sherman Antitrust Act
b. Ethical Compliance Act
c. Robinson-Patman Act
d. Sarbanes-Oxley Act
e. Dodd-Frank Act
ANSWER: d

8. During which of the following steps of the ethics auditing process does an organization identify the tools or methods for measuring progress in improving employees’ ethical decisions and conduct?
a. Secure commitment of top managers and directors
b. Establish a committee to oversee the audit
c. Define the scope of the audit
d. Collect and analyze relevant information
e. Verify the results
ANSWER: d

9. Any attempt to verify outcomes and to compare them with standards can be considered a(n) _____ activity, although many smaller firms do not use this word.
a. ethical
b. auditing
c. formal
d. informal
e. accounting
ANSWER: b

10. _____ are a primary stakeholder group and should be included in the ethics auditing process because their loyalty determines an organization’s success.
a. Customers
b. Suppliers
c. Special interest groups
d. Competitors
e. Legislators
ANSWER: a