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Abrar

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Submitted By abrar2024
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Auditing and Assurance Services, 15e (Arens)
Chapter 4 Professional Ethics

Learning Objective 4-1

1) Ethics are:
A) needed in the professions, but is not needed for society in general.
B) a set of moral principles or values.
C) not formed by life experiences.
D) always incorporated in laws.
Answer: B
Terms: Ethical Principles
Diff: Easy
Objective: LO 4-1
AACSB: Ethical understanding and reasoning abilities

2) ________ means that a person acts according to conscience, regardless of the situation.
A) Caring
B) Fairness
C) Integrity
D) Respect
Answer: C
Terms: Ethical principles and integrity
Diff: Moderate
Objective: LO 4-1
AACSB: Ethical understanding and reasoning abilities

3) One of the main reasons people act unethically is that they choose to act selfishly.
A) True
B) False
Answer: A
Terms: Ethical Principles
Diff: Easy
Objective: LO 4-1
AACSB: Ethical understanding and reasoning abilities

Learning Objective 4-2

1) A six-step approach is often used to resolve an ethical dilemma. The first step in this process is to:
A) identify the alternative actions available.
B) identify the ethical issues from the facts.
C) determine who will be affected by the outcome of the dilemma.
D) obtain the relevant facts.
Answer: D
Terms: Ethical dilemma
Diff: Moderate
Objective: LO 4-2
AACSB: Ethical understanding and reasoning abilities

2) Describe an ethical dilemma that an auditor or an accountant might face in his or her business career, then illustrate how the auditor or accountant might use the six-step approach presented in the text to resolve that dilemma. Be specific.
Answer: An ethical dilemma is a situation a person faces in which a decision must be made about an appropriate behavior. Although students' answers will vary depending on the dilemma, their answer should list the following six

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