QUESTION What does employee fraud cost companies out of their earnings? A) 1 percent B) 3 percent C) 5 percent D) 8 percent E) 10 percent ANSWER Answer: C Explanation: C) Employee fraud costs companies 5 cents of every dollar in revenue, clearly impacting profits.
Date: September 3rd, 2020
QUESTION Which strategy for encouraging ethical behavior in an organization follows a more punitive approach? A) top managers supporting an ethical climate B) running background checks on job candidates C) establishing integrity-based ethics codes D) establishing compliance-based ethics codes E) conducting ethics training for employees ANSWER Answer: D Explanation: D) Compliance-based codes attempt to […]
Date: September 3rd, 2020
QUESTION Which of the following is an example of the general public’s outrage playing a role in curbing white-collar crime? A) conviction of former Enron chief Jeffrey Skilling B) passage of the Sarbanes-Oxley Act of 2002 C) formation of the Bureau of Consumer Financial Protection D) proliferation of compliance- and integrity-based ethics codes E) increased […]
Date: September 3rd, 2020
QUESTION Tayshaun has noticed accounting irregularities in his company’s quarterly reports. Significant expenses are missing, making the company look highly profitable despite a dismal economy. After doing more research, he reports this to the state attorney general’s office. What is the term applicable to Tayshaun? A) compliance officer B) ethics officer C) enforcer D) informant […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT a principal provision of the Sarbanes-Oxley Act of 2002? A) Alteration or destruction of key audit documents is prohibited. B) Company CEOs and CFOs must personally certify financial reports. C) Whistleblowers punished by their employers receive back pay and job reinstatement. D) Companies must draft and all employees […]
Date: September 3rd, 2020
QUESTION Under the Sarbanes-Oxley Act, who is required to personally certify the financial reports of an organization? A) chief executive officer B) chief financial officer C) chief executive officer and chief financial officer D) chief financial officer and board chairman E) chief executive officer and board chairman ANSWER Answer: C Explanation: C) This provision […]
Date: September 3rd, 2020
QUESTION The Public Company Accounting Oversight Board created by the Sarbanes-Oxley Act is granted authority under what government entity? A) Department of Commerce B) Securities and Exchange Commission C) Department of Homeland Security D) Consumer Protection and Safety Commission E) Department of the Treasury ANSWER Answer: B Explanation: B) The commission is charged with […]
Date: September 3rd, 2020
QUESTION What is Sarbanes-Oxley an example of? A) compliance-based ethics code B) integrity-based ethics code C) state regulation D) federal law E) federal regulation ANSWER Answer: D Explanation: D) The Sarbanes-Oxley Act is a law passed by Congress in 2002 to strengthen oversight of corporate practices.
Date: September 3rd, 2020
QUESTION Who argued against corporate social responsibility by contending that the only social responsibility of a business is to create jobs and expand economic growth? A) Alan Greenspan B) Andrew Carnegie C) Milton Friedman D) Bill Gates E) Paul Samuelson ANSWER Answer: C Explanation: C) In a famous 1970 article, the late economist Friedman […]
Date: September 3rd, 2020
QUESTION Which of the following is NOT an argument in favor of corporate social responsibility (CSR)? A) Businesses have resources unavailable to nonprofits. B) Business provides sufficient social value by creating jobs. C) Business creates social problems and should help solve them. D) Businesses are not separate from society. E) Businesses practicing CSR can limit […]
Date: September 3rd, 2020
