Quizzes – Revision Unit 1 – Ethics and Professional Skills

 Morality is
o A. The understanding of right and wrong

o B. The understanding of justice

o C. The understanding of what is good and what is not good for others

o D. All of these

 Lawrence Kohlberg's Moral development theory is broken down into 3 major stages.
o A. True

o B. False

 Lack of Moral development can lead to:

o A. Negative consequences such as inability to make friends and academic problems

o B. Winning the Nobel Peace Prize

o C. Becoming a millionaire

o D. Going to medical school

 "Moral Development is the process through which individuals develop attitudes and
behaviours towards others."
o A. True

o B. False

 Conventional Morality involves interpersonal relationships and conforming to social

norms.
o A. True

o B. False

 Pre-Conventional Morality is the last stage of Kohlberg's Moral development theory.

o A. True

o B. False (the first stage )


Select the three stages of Morality Development theory in order of occurrence
according to Kohlberg:

o A.

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 Conventional Morality; Post Conventional Morality; Pre- Conventional Morality

o B.

Pre-Conventional Morality; Post Conventional Reality; Conventional Morality

o C. Pre-Conventional Morality; Conventional Morality; Post-Conventional Morality

Stephanie's behavior is controlled by external rewards and punishments. Stephanie's

behavior reflects which level of Kohlberg's theory of moral development?
A) preconventional reasoning
B) conventional reasoning
C) interconventional reasoning
D) postconventional reasoning
Sarah is about to deliver a baby. Her husband is driving her to the hospital at 80 miles per
hour. Their children are also in the car. Billy says, "Daddy, you can't go this fast. It's against
the law." Mandi says, "It's all right, Billy. Daddy has to get Mommy to the hospital quickly.
This car is like an ambulance." What is Mandi's moral level?
A) conventional (Billy)
B) preconventional (self-interest)
C) postconventional
D) heteronomous morality
Ethics may be defined as going beyond what is legal and doing what is __________.

 easy
 popular
 right
 profitable
Beth is a salesperson who refuses to exaggerate the quality of a product that she sells
because she believes doing so would violate the moral rule against lying. What moral theory
best explains her ethical decision?

 Moral relativism-Depends on situations -she doesn’t make decision based on the

situation
 Utilitarianism-consequential -outcome
 Deontology-does her duty/ job
 None of the answers are correct
What is Moral Relativism??

 The idea that there is universal or absolute set of moral principles.

 relativism that is moral
 I don't know the answer

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  The idea that there is no universal or absolute set of moral principles.
If the people of some other country widely accept wife-beating, whereas we find that to be
morally unacceptable, then that proves that relativism is true.
a. True
b. False

Deontology, the 18th century philosophy of Immanuel Kant, is based on the idea that:

 We are morally obligated, at times, to act in a certain way even though the outcome
of our actions might not be good for everyone. -fulfilled their duty
 We are always morally obligated to do what is good.
 We can never know the difference between right and wrong.
 Ethics is outdated.
Utilitarians judge the morality of conduct by a single standard, _____.
a. the greatest consequences principle
b. the greatest action principle
c. the principle of utility
d. the principle of duty

CASE STUDY QUESTIONS

A hospital has limited capacity to deal with Covid-19 patients and is having to decide
between admitting a 20-year-old patient, who is fit and well, and a 75-year-old patient, who
has a history of heart disease, to their last available ventilator. What should be the hospital’s
decision?
-Best decision for the hospital-20 years old. It has higher chance of surviving + recover
faster-ventilator is available for the next person-Consequentialist theory-greater good for
everyone to save more lives.

Federal law protects employees against different forms of discrimination in the workplace.
Companies often include discrimination policies into employee handbooks. Why do
companies do that?

5 Fundamental principles-Integrity, Objectivity, Confidentiality, Professional Competence &

Due Care & Professional Behavior

A fundamental principle where members should not allow bias, conflicts of interest or undue
influence of others to override professional or business judgments

 due care

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  objectivity
 professional competence
 confidentiality
Which of the following will allow a professional accountant to disclose?
Principles of confidentiality-Unless required by the laws & protect public interest

 Court asks for information * court order

 Debtor asking about going concern of the audit client

It is in the public interest for accountants to follow a professional ethics framework

 True
 False

What fundamentals ethical prohibited association of professional accountants with report,

returns, communications and other information that is believed to contain a materially false
or misleading statement? Which fundamental principles doesn’t allow professional
accountant be associated with materiality false or misleading statement?

Integrity-Be straightforward & Honest

What threats to compliance with the fundamental principles may occur because of the
financial or other interests of a professional accountant or of an immediate or close family
member?
Threats
- Self Interest
-Self Review
-Familiarity-Close relationships
-Intimidation
-Advocacy
Malcolm was the Chief Financial Officer of Inventa Ltd. He is now the senior partner at Quick
Audit. Quick Audit is the current auditor of Inventa Ltd and Malcolm is the partner in charge
of the audit.
Which threat is most likely to arise in the above information?

A advocacy-supportive for client

B familiarity-Close relationships
C self-review-Receiving your own word-previous judgements-overlook errors

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D self-interest

Compliance with the fundamental ethical principles is mandatory for all members of the
accounting profession.
a. True
b. False
An example of an advocacy threat is encouraging others to buy shares or bonds being sold
by the client.
a. True
b. False
Which of the following statements regarding a profession’s code of ethics is most accurate?
(Principles based)
A. A code of ethics always make sure that all members of a profession act ethically.
B. A code of ethics communicates the principles and expected behavior of a profession’s
members.
C. A code of ethics always includes standards of conduct.

It’s lunchtime, so you head to the office kitchen to heat up your food. While you’re waiting on
the microwave, you notice an open file folder sitting on the table with what looks like a list of
employees and their salaries hanging out of it. No one else is in the room, so you have no
idea who the folder belongs to. What do you do? Confidentiality
a. Ignore the open folder and go about your business.
b. After briefly looking at the contents of the folder (just to make sure you’re being paid
competitively) you take it to the HR Director for her to handle.
c. Take the folder with you and send out a company-wide email asking the person who
left a file folder in the third-floor kitchen to come see you to pick it up.
d. Without reading the visible pages, close the folder and wait. When its owner shows
up, explain that you closed the open folder as soon as you saw what it was but didn’t
want to leave such sensitive information unattended.

Standing in line at a café you notice the man in front of you drop a $5 bill out of his wallet
and onto the floor. After looking around it seems like no one else, including the man in front
of you, saw the bill fall. What do you do?
a. Consider it karma for the $10 you lost last month on the subway, pick it up
when you get to the counter and use it to pay for your latte.
b. Tap the man on the shoulder and tell him that he accidentally dropped some
money.
c. Pick up the $5 bill and put it in the tip jar when you reach the counter. After
all, that guy was really rude to the barista and didn’t even tip him.

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d. Leave the bill on the floor and say nothing, figuring either the guy will come
back for it or someone who needs it more will find it.