TrueFalse Questions:

Chapter 2: Ethics at Work

1

Copyright ©2015 Pearson Education, Inc.

1 Chapter 2 Ethics at Work

SOLUTIONS

1

True/False Questions:

• False

Explanation: Virtue ethics focuses on character traits of a virtuous person and thus offers no strict rules on how to act.

• False

Explanation: Virtue ethics is agent centered, while consequentialism is concerned with the effects of an action.

• False

Explanation: Business ethics is a type of applied ethics. Metaethics is concerned with what constitutes the good and the bad, while business ethics deals with the ethics of particular situations and within a particular discipline.

• False

Explanation: This is one of the limits of consequentialism. Although it judges an action by the consequences, it is unable to predict every possible consequence.

• False

Explanation: Utilitarians judge actions by the utility they produce, thus it is a form of consequentialism.

• True

Explanation: This is the hallmark of deontology.

• False

Explanation: This is the goal of virtue ethics.

• False

Explanation: The purpose of the audit is to give an independent opinion on the financial statements.

• False

1 Solutions for this chapter provided by Kate Jackson, Ph.D. student in Theological Ethics, Boston College.Detecting Accounting Fraud Analysis and Ethics 1st Edition Jackson Solutions Manual Visit TestBankDeal.com to get complete for all chapters

DETECTING ACCOUNTING FRAUD

2

Copyright ©2015 Pearson Education, Inc.

2 Explanation: The rights approach is often combined with the duties approach since a right often produces a reciprocal duty.

• True

Explanation: A specific transaction can cause a specific person to have the right to have a loan repaid.

Fill-in-the-Blank Questions:

• Kant
• maximize
• allocated
• need
• character
• Aristotle
• utilitarianism
• hedonism
• stakeholders
• telos

Multiple-Choice Questions:

• a

Explanation: Utilitarianism is a form of consequentialism that refers to all the approaches in the study of morality that evaluate conduct or actions in terms of the consequences that they produce. Answers b. and c. are incorrect because they do not refer to the consequences of an action.

• b

Explanation: According to Kant’s categorical imperative, the end does not justify the means. Answers a, b, and c are all consistent with Kant’s categorical imperative. If Kant thought the end justified the means, he would have been a consequentialist.

• c

Chapter 2: Ethics at Work

3

Copyright ©2015 Pearson Education, Inc.

3 Explanation: According to the virtue theory of ethical behavior, the most important aspect of morality is found within an individual’s character. Answer a is incorrect because deontology emphasizes duty  Answer b is incorrect be utilitarianism emphasizes consequences

• b

Explanation: An unwavering commitment to duty is the hallmark of deontology.

 Answers a, c, and d are all associated with virtue. According to Aristotle, virtues are developed by habit, adhering to the mean between extremes, and behavior related to human flourishing.

• a

Explanation: Anne would be using some of the consequences of her possible response to guide her behavior.

• b

Explanation: She would be using her sense of duty (in this case telling the truth) to guide her behavior. Duty is the guiding principle of deontology.

• a

Explanation: This type of thinking is considered a shortcoming of consequentialism. At times, it can permit egregious acts in the name of the greater good.

• a

Explanation: Another limit of consequentialism is that the scope of the consequences is often unclear.

• b

Explanation: Autonomy is not a cardinal virtue.

 The cardinal virtues are: courage, temperance, wisdom, and justice.

• c

Explanation: Self-defense rights were not identified by Sterba

 Sterba identified action rights, in persona rights, in rem rights, and recipient rights.

For Discussion:

31. Reponses will vary. Here are some possible reactions:

DETECTING ACCOUNTING FRAUD

4

Copyright ©2015 Pearson Education, Inc.

4

Possible Virtue Possible Description Honesty Preparing financial statements that fairly represent the entity’s financial position and the results of its operations Diligence Working hard and with accuracy to get a job done; finishing a task one is given Courage Speaking out against unethical business practices; refusing to prepare fraudulent financial statements.Wisdom Knowing when to speak out Fairness Not having favorites; keeping all users of financial statements in mind Generosity Spending time on mentoring less experienced accountants.

Considering the cultivation of virtues, since virtue ethics is about the virtuous person, often virtue ethics is taught by example and/or through narrative. A way to teach business virtues might be through a story about a virtuous accountant. Students may elect to write a tale about a virtuous accountant that teaches lessons about how a virtuous person may respond to difficult ethical business dilemmas.Aristotle thought virtues were cultivated through habit. In this view, small and regular behaviors shape character. To cultivate the virtue of generosity, for example, one might start on a small-scale by giving a dollar to a homeless person on the street, bringing brownies to give out at work, or being generous with one’s time by genuinely asking and listening to how a co-worker is doing. Also in this view, one does not magically become a courageous whistle-blower, for example, but rather the virtue of courage is fostered through day-to-day courageous acts, such as speaking out against gossip, admitting when one makes a mistake, and offering one’s suggestions at a work meeting.

32. Reponses will vary. Here are some possible reactions:

Those who assert that virtues in business are related to virtues in personal life may support their answers with some of the following beliefs: virtues exist in unity; virtues are developed